Ontario Land Transfer Tax Rebates!
Ontario Land Transfer Tax Rebate Program - Proposed Expansion to include Resale Homes
In December 2007 the provincial government proposed to amend the Land Transfer Tax Act to include a maximum rebate of $2,000 to first-time buyers of resale homes. There are still several steps within the legislative process before this comes into effect but it will be retroactive to include agreements of purchase and sale entered into after December 13, 2007. It is recommended that anyone purchasing should review the following criteria (supplied by the provincial government web site www.rev.gov.on.ca ) and get their application at the top of the pile! E-mail me for more information about the existing Land Transfer Tax, what the amount will be on your dream home, and for more information on the proposed rebate.
Resale Homes
Until the proposed amendments become law, the following applies to first-time homebuyers of resale homes applying for a refund:
- Land transfer tax must be paid at registration
The following documentation must be submitted to the Ministry of Revenue at the address at the end of this notice:
- Refund applications on resale homes cannot currently be made electronically.
- A properly completed Ontario Land Transfer Tax Refund Affidavit for First-Time Purchasers of Eligible Homes (Resale) form
- A copy of the registered instrument on which land transfer tax was paid (in the case of electronic registration, please include a copy of the docket summary which relates to the transaction);
- A copy of the agreement of purchase and sale (only those agreements of purchase and sale entered into after December 13, 2007 may qualify) along with a copy of the statement of adjustments.
- Refund applications on resale homes cannot currently be made electronically.
- Refund to be Paid once Proposals become Law
- Although eligible first-time buyers of resale homes may apply for the refund once the transaction has closed and the tax has been paid, the ministry would retain the refund requests for processing and would issue refunds if the proposed amendments become law.
Eligibility Requirements
The following eligibility requirements are proposed to apply for resale homes, and continue to apply for newly constructed homes:
- The purchaser must be at least 18 years of age.
- Application for the refund must be made within 18 months after the date of the conveyance or disposition.
- The purchaser must occupy the home as his or her principal residence within 9 months of the date of closing.
- The purchaser cannot have owned a home or had any ownership interest in a home, anywhere in the world.
- A spouse of the purchaser cannot have owned a home or had any ownership interest in a home, anywhere in the world while he or she was the purchaser’s spouse.
What is a Resale Home?
A resale home is referred to as an eligible home in the proposed legislation. It is proposed that eligible home be defined as follows:
- a detached house
- a semi-detached house, including a dwelling house that is joined to another dwelling house at the footing or foundation by a wall above or below grade or both above and below grade;
- a townhouse;
- a share or shares of the capital stock of a co-operative corporation if the share or shares are acquired for the purpose of acquiring the right to in-habit a housing unit owned by the corporation;
- a mobile home that complies with the Canadian Standards Association Standard CAN/CSA-Z240 Mobile Homes and is suitable for year round permanent residential occupation;
- a condominium unit;
- a residential dwelling that is a duplex, triplex or fourplex;
- a partial ownership interest as a tenant in common of real property if the ownership interest was acquired for the purpose of acquiring the right to inhabit a housing unit forming part of the real property;
a manufactured home that is manufactured in whole or in part at an offsite location, that is intended for basement installation, that is suitable for year round permanent residential occupation and that complies with,
the Building Code made under the Building Code Act, 1992;
if the manufactured home is constructed in sections that are not wider than 4.3 metres, Canadian Standards Association Standard Z240.2.1 Structural Requirements for Mobile Homes and Canadian Standards Association Standard Z240.8.1 Windows for Use in Mobile Homes, or
if the manufactured home is constructed in sections that are 4.3 metres or wider, Canadian Standards Association Standard A277 Procedure for Certification of Factory Built Houses; or;
- any other residential property as may be prescribed.
Labels: Homeowner, Land Transfer Tax, Real Estate Advice, Woodstock, Woodstock ON Real Estate, Woodstock Ontario Real Estate
posted by Ben Sage, Sales Representative @ 8:13 PM
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