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Am I eligible for a land transfer tax refund?

Filed Under Brampton, Buy, Condos, Homes, Real Estate, The Numbers 

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There seems to be a lot of confusion going around these days regarding new land transfer tax changes. In this previous article, I highlighted the new changes to land transfer taxes in the City of Toronto, as well as provided a land transfer tax calculator.

The Land Transfer Tax Refund Program for first-time home buyers has been expanded to include purchases of resale homes. If you’re a first time purchaser of a RESALE home and your Agreement of Purchase and Sale was registered after December 13, 2007, you are entitled to receive a refund of up to $2,000 of the land transfer tax paid. As these proposed amendments to the Land Transfer Tax Act are still pending by the Ontario Legislature, you can either wait until it becomes law or send in the required documents first and have them held pending Royal Assent of the proposed amendments.

Here are the documents you will need to get your refund:

  1. Copy of Agreement of Purchase and sale
  2. Copy of Docket Summary (to show payment)
  3. Copy of Registered Transfer
  4. Land Transfer Tax Refund Affidavit

Mail these forms to:

Ministry of Revenue
Tax Compliance and Regional Operations Branch
Land Taxes Section
33 King Street West
P.O. Box 625
Oshawa, Ontario L1H 8H9

If you’d like more information, you can visit the official website for more details.

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Comments

5 Responses to “Am I eligible for a land transfer tax refund?”

  1. C. White on April 22nd, 2008 8:43 am

    I am a first time buyer of a resale home.
    I bought my home on December 12, 2008.
    Am I eligible for the refund?

  2. lang on April 22nd, 2008 8:50 am

    Hi there

    Yes, you are eligible of up to a $2,000 refund if your home was purchased after December 13, 2007.

    Until proposed amendments to Land Transfer Tax Act become Law (date of this not yet known) for first time buyers of resale homes, the following will be the procedure:

    1) Land Transfer Tax must be paid at time of closing by first time buyers of a resale home.

    2) Such a first time buyer must then submit a Land Transfer Tax refund affidavit (as per attached) together with a copy of the Transfer Deed and Agreement of Purchase and Sale. The buyer’s lawyer should prepare this for client, have client sign it and mail it after closing.

    Applications for refunds can be submitted as soon as the deal has closed (and land transfer tax paid). However, NO refund cheques will be issued to purchasers UNTIL the bill becomes law.

    Eligibility requirements for resale homes, is the same as for new builder homes:

    - Purchaser must be 18 years or older
    - Must use property as principal residence within 9 months of closing
    - The spouse of the first time buyer must not have owned any residential property anywhere in the world during the marriage

    Once the bill becomes law (and Teranet, being the electronic registration system, is updated), the purchaser will be able to claim an immediate refund at the time of registration by completing the required statements under the explanation tab of the electronic affidavit (as is done currently by first time buyers with new builder deals); this will then result in the refund being deducted (up to 2,000.00) at time of closing.

  3. C. White on April 22nd, 2008 9:05 am

    Thanks for the information. The clsoing for my home was on December 12, 2007. Does this make a difference? The article had stated that the home must be registered after December 13,2007.

  4. lang on April 22nd, 2008 9:10 am

    I apologize. I should have realized that the date you initially gave me was incorrect, as you stated you bought the home in December of 2008. December hasn’t arrived yet!

    At any rate, your agreement of purchase MUST be dated for on or after December 14, 2007. If the date on your agreement of purchase is any date before that, then I am afraid you’ve just missed the cut off date.

  5. C. White on April 22nd, 2008 9:18 am

    I apologize. My closing was on December 12/07. I guess It’s unfortunate that I missed
    it by a few days.

    Thanks again!

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