 |
 |
 |
| LAND TRANSFER TAX |
|
Ontario's Land T
When is Tax Payable?
Who is Responsible for Paying for the Tax? Every person/entity obtaining an interest in land or property is liable to land transfer tax. The purchaser is responsible for paying Land Transfer Tax NOT the seller.
When is Land Transfer Tax Payable? Land Transfer Tax is payable at the time the purchaser is registered as the new owner in the Land Title Office on closing. First time home buyers of newly built homes receive their refund immediately. First time home buyers of resale homes must apply to the government for their refund.
The purchaser's solicitor pays the Land Transfer Tax on behalf of the purchaser on the closing date. The purchaser will be required to provide their solicitor closing funds (certified) that will cover the closing expenses.
How is the Tax Calculated? The tax is calculated on the value of the consideration for the transfer. In certain circumstances the Land Transfer Tax Act (Act) deems the value of the consideration to be the fair market value of the land.
On transfers of residential real property in Ontario, Land Transfer Tax (LTT) is calculated on the purchase price (less a HST calculation, if the property purchased is a newly built home). The land transfer tax is payable by the purchaser on the purchase price upon registration of a Transfer/Deed of Land in the Ontario Land Registry Office on closing.
|
BUYING |
|
|
ransfer Tax is a provincial tax payable by the purchaser upon the acquisition of an interest in land by registered conveyance or unregistered disposition. Therefore, if you purchase a property or land you are responsible for paying Land Transfer Tax to the province at the time the transaction closes.
How is the Tax Paid?
|
© 2013 | Privacy Policy |
contact info | connect with us |
|
RE/MAX Vision Realty Inc., Brokerage
Phone: 416-321-2228 |
|
