Archive

Down & Company Professional Corporation published the following articles:

• I do not live in Canada. Will I have to pay any additional tax to purchase a property?

  It depends.  The Province of Ontario has implemented a Non-Resident Speculation Tax (NRST), often referred to as a foreign buyer tax.  This tax imposes a 20% tax on top of the purchase price for purchases of residential real estate in the greater Toronto region if the purchaser is not either (1) a Canadian citizen, or… Read the Article
  • December 6th, 2019
  • Posted in:

• I am buying a condominium and plan to rent it on Airbnb when I’m not using it. Awesome idea, right?

  Well… unfortunately this is a bit of a murky situation.  Renting your condominium unit on a short-term basis, whether through Airbnb or otherwise, might not be permitted for a number of different reasons.  These reasons include, among others, the rules of your particular condominium, the terms of your mortgage agreement, provisions of your insurance policy… Read the Article
  • December 6th, 2019
  • Posted in:

• I am buying a property as an investment. Are there any additional steps I need to take?

  Yes! It is always important to let your lawyer know how you intend to use the property.  This is important so that we can investigate to confirm that the proposed use is actually permitted, as well as to ensure that you are compliance with your mortgage, among other things. For example, if you are buying… Read the Article
  • December 6th, 2019
  • Posted in:

• I am buying a new construction condominium by assignment. Does this change anything?

  Yes!  Assignment purchases can offer a great opportunity to buy a new construction condominium that is ready to be moved into.  However, purchasing in this way raises a number of unique issues .  Buying by assignment involves two transactions (the assignment from the original purchaser, and the eventual purchase of the unit from the builder)… Read the Article
  • December 6th, 2019
  • Posted in:

• I am buying a new construction condominium and I have to move in before I own the unit. Do I have to pay rent to the builder prior to closing?

  You do not have to pay rent, but you will have to pay the builder an “occupancy fee”.  Occupancy fees are charged by the builder each month from the time you move in until the builder is able to transfer ownership to you.  The amount a builder is permitted to charge as an occupancy fee… Read the Article
  • December 6th, 2019
  • Posted in:

• I am buying a new construction condominium to live in. Do have to pay HST?

  Yes, but most or all of the HST is likely already included in the purchase price.  This is a bit complicated, but most new construction purchase agreements include all of the HST payable provided the purchaser is buying the unit to live in it as their principal residence (or the principal residence of an immediate… Read the Article
  • December 6th, 2019
  • Posted in:

• I am buying a new construction condominium. When will I get to move in?

  Who knows… well, it’s a little clearer than that but the short answer is that in most cases buyers should be ready for long timelines and possible delays. Builders of new construction condominiums are required to include in their purchase agreements a “TARION Statement of Critical Dates”.  This statement sets out the timelines that the… Read the Article
  • December 6th, 2019
  • Posted in:

• I am buying a new construction condominium. Are my deposits safe?

  The Condominium Act (Ontario) creates rules that builders are required to comply with when they accept deposits from buyers.  Essentially, the builder is required to deposit the money into a lawyers’ trust account and the builder is not allowed to access the money until either (i) ownership of the unit is transferred to the buyer,… Read the Article
  • December 6th, 2019
  • Posted in:

• We qualify for the first-time homebuyer’s land transfer tax rebate. When do we get the rebate?

  Land transfer tax has to be paid at the time of the transfer of ownership.  In most cases you will only have to pay the net amount of land transfer tax payable after taking account of the rebate.  In other words, the amount of land transfer tax you pay at closing is reduced by the… Read the Article
  • December 6th, 2019
  • Posted in:

• I previously owned a home, but my spouse is a first-time homebuyer. Do we qualify for the first-time homebuyer’s land transfer tax rebate?

  It depends, please call us to discuss.  If you sold the house before you became spouses, your spouse may be able to claim the first-time homebuyer’s land transfer tax rebate.  If, however, you owned the home while you were spouses, your spouse will not be able to claim the first-time homebuyer’s land transfer tax rebate.
  • December 6th, 2019
  • Posted in: