56
[BUYING AND SELLING REAL ESTATE IN CANADA - ONTARIO]
- for properties containing at least one but no more than two single-family residences, one-half of 1% on the first $55,000 of the purchase price, 1% on the balance of the purchase price up to and including $250,000, 1.5% on the balance of the purchase price up to and including $400,000, 2% on the balance of the purchase price up to and including $2,000,000, and 2.5% on the balance of the purchase price at $2,000,001 and above; and - for all other properties, one-half of 1% on the first $55,000 of the purchase price, 1% of the balance of the purchase price up to and including $250,000, 1.5% of the purchase price up to and including $400,000, and 2% on the balance of the purchase price at $400,001 and above. First-time homebuyers may be eligible for a refund of all or part of the tax, up to a limit. Certain transfers, such as between spouses for no consideration, may be exempt from the tax. Non-Resident Speculation Tax Effective April 21, 2017, a non-resident speculation tax (NRST) of 15% has been imposed on the purchase or acquisition of an interest in a residential property located in the Greater Golden Horseshoe Region by an individual who is not a citizen or permanent resident of Canada or by foreign corporations and taxable trustees. The NRST is owed in addition to the land transfer tax in Ontario and Toronto, if applicable, and applies to the value of the consideration for a transfer of residential property. The transfer contains statements identifying whether the transfer is subject to the NRST and applicable explanations. XIII. CLOSING DOCUMENTS Some examples of commonly used documents on the closing of the residential transaction are:
1. Transfer/deed of land This document transfers ownership of the real property to the buyer, lists the consideration paid and contains the land transfer tax affidavit completed by the buyer. If the seller is an individual, the transfer must contain Family Law Act statements, which are designed to protect spousal rights of the matrimonial home. If a party is selling the matrimonial home and the spouse is not listed on title, the non-titled spouse must give consent to the transaction. Planning Act optional statements may also be included in the transfer. The buyer will advise the seller how it is taking title. 2. Statement of adjustments The statement of adjustment is prepared by the seller for the buyer and calculates the amount of money the buyer owes the seller on the closing date and will show the purchase price due to the seller and credits for any deposits already paid by the buyer. It should include an adjustment all ongoing expenses and revenues, such as property taxes, rents and damage deposits from tenants, condominium strata fees, etc., that are due or paid by the seller prior to closing. It includes all costs up to the day before closing for the seller, and the day of closing for the buyer. An undertaking from the buyer and seller to readjust the statement of adjustments after closing for any errors discovered post-closing or for a recalculation of realty taxes once the final tax bill is issued post- closing is commonly included in the closing documents. 3. Document Registration Agreement ("DRA") – To accommodate
electronic registration, the DRA outlines the terms of escrow under which the transaction is completed, including the transfer of funds and registration of documents.
ILN Real Estate Group – Buying and Selling Real Estate Series
Made with FlippingBook - professional solution for displaying marketing and sales documents online