Ontario Land Transfer Tax AFS

[Mina]

How does the land transfer tax work when purchasing a home via AFS in Ontario? Is it any different than buying a home conventionally?

 

[Thomas Beyer]

The "f" in AfS implies that the house is NOT YET sold .. it is an agreement for (future) sale.



Thus, taxes would be payable when title transfers .. at the agreed upon future date !

 

[lanedry77]

Mina,



Thomas is correct in that until the property sells (title changes), you don't have to pay land transfer tax.



BUT... if you register a notice on the title to protect your interest in the transaction (which you definately should!), that will trigger the transfer taxes.



If the deal is good, then paying $5,000-ish for taxes might not be a problem for you, but it definately requires an analysis.





Thanks,



David.

 

[Thomas Beyer]

[quote user=DavidSandbrand]BUT... if you register a notice on the title to protect your interest in the transaction ... , that will trigger the transfer taxes.


Why is that ?

 

[lanedry77]

Thomas,



I don't know the logic of the Ontario Gov't, but I have heard this from a number of people in Ontario that I trust to be accurately informed.



At lease out here in Alberta, a sale by Agreent for Sale *does* transfer all beneficial ownership of the property, but the legal ownership is retained by the seller. thus, I can understand that a regulatory body could easily say that the sale has occured now, instead of in the future.





Thanks,



David.

 

[Thomas Beyer]

[quote user=DavidSandbrand]Agreent for Sale *does* transfer all beneficial ownership of the property, but the legal ownership is retained by the seller. thus, I can understand that a regulatory body could easily say that the sale has occured now


I see ..