56
[BUYING AND SELLING REAL ESTATE IN CANADA - ONTARIO]
Over $20,000,000
7.5%
- 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 (buyers that have not owned real estate anywhere else in the world) may be eligible for a refund of all or part of the tax, up to a limit of $4,000 for the Ontario provincial rebate and $4,475 for the municipal Toronto rebate. Certain transfers, such as between spouses for no consideration, may be exempt from the tax. Non-Resident Speculation Tax Effective April 21, 2017 as a 15% tax on transactions , and recently amended to 25% on October 25, 2022, , the non-resident speculation tax (NRST) is a province wide tax imposed on the purchase or acquisition of an interest in a residential property located in the Province of Ontario by an individual or corporation controlled by a person who is not a citizen or permanent resident of Canada or by foreign corporations and taxable trustees. The NRST applies to the transfer of “designated land”, which is considered land that contains at least one and no more than six single family residences. 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.
Effective January 1, 2025, the City of Toronto implemented a Municipal Non-Resident Speculation Tax (MNRST) of 10% imposed on foreign purchasers of designated residential properties in Toronto, adding on top of the provincial NRST. XIV. 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.,
ILN Real Estate Group – Buying and Selling Real Estate Series
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