WHAT IS IT?

Premier Dalton McGuinty has proposed that the Land Transfer Tax Rebate plan presently in place for 1st time buyers of newly constructed homes, be expanded to include 1st time home buyers of a resale home as well.

As with the rebate for newly constructed homes, the rebate would be for a maximum of $2,000.00.

It would include all those purchase agreements entered into after December 13th, 2007.

ARE YOU AN ELIGIBLE PURCHASER?

There are certain requirements for a purchaser that the McGuinty government has attached to this rebate. This is the criteria ~

• The Agreement of Purchase and Sale must be dated after December 13th, 2007.
• The purchaser must be at least 18 years of age.
• 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"?

Not only does the purchaser have to qualify for the rebate, so does the home being purchased.

Here are the type of homes that qualify:


• 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 inhabit 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:
1. The building code made under the Building Code Act, 1992;
2. 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
3. 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;
• Any other residential property as may be prescribed.

 

SO NOW WHAT?

For the time being a purchaser will be required to pay the Land Transfer Tax at the time of closing.

When a purchaser meets with his lawyer to sign the closing documents the purchaser will also sign an Ontario Land Transfer Tax Refund Affidavit for first-time purchasers of eligible resale homes. This document, together with a copy of the registered Transfer and the Agreement of Purchase and Sale will be sent to the Ministry of Revenue for processing and the eventual issuing of the rebate. How long it will take for the rebate to be issued cannot be determined at this time.

We will continue to monitor the progression of the proposal through the Legislature and to Royal Assent and provide update information on this site.

We trust that this information is helpful. If we can answer any questions, please feel free to call or e-mail us.