Hi,
My friend has a fourplex. He is both on mortgage and on title.
After purchasing he signed a JV agreement (50/50) with his JV partner.
The value of the property increased significantly and they now want to refinance it, probably with a new bank.
A couple related questions:
1. Should only my friend apply, or because of the JV agreement both my friend and his JV partner should apply?
If both apply, will it not trigger a sale tax? or/and land transfer tax?
2. Since they wanted to do things right from the start they prepared two T776 Forms 'Statement of RE rentals' - one for my friend and one for his JV partner in order to reflect in their tax returns, the JV agreement they signed.
Both have T776 showing they own this 4-plex 50% each.
Did they make a mistake with regards to T776 because only my friend is on the mortgage? or the way they did it is also what other REIN members recommend?
The reason I am asking is question/scenario #1 above can contradict #2 or casue an issue If for example only my friend applies and the new bank wants to see his T776 , as part of the refinance application, and sees only 50% ownership shown(?)
Thanks,
Neil
My friend has a fourplex. He is both on mortgage and on title.
After purchasing he signed a JV agreement (50/50) with his JV partner.
The value of the property increased significantly and they now want to refinance it, probably with a new bank.
A couple related questions:
1. Should only my friend apply, or because of the JV agreement both my friend and his JV partner should apply?
If both apply, will it not trigger a sale tax? or/and land transfer tax?
2. Since they wanted to do things right from the start they prepared two T776 Forms 'Statement of RE rentals' - one for my friend and one for his JV partner in order to reflect in their tax returns, the JV agreement they signed.
Both have T776 showing they own this 4-plex 50% each.
Did they make a mistake with regards to T776 because only my friend is on the mortgage? or the way they did it is also what other REIN members recommend?
The reason I am asking is question/scenario #1 above can contradict #2 or casue an issue If for example only my friend applies and the new bank wants to see his T776 , as part of the refinance application, and sees only 50% ownership shown(?)
Thanks,
Neil