Residential Condominium Buyers' Guide

What is the purpose of the Condo Guide?

Ontario’s Residential Condominium Buyers’ Guide (Condo Guide) was developed by the Condominium Authority of Ontario (CAO) in collaboration with the Ministry of Government and Consumer Services (MGCS) and approved by the Minister as a helpful resource for the buyers of residential pre-construction/new condo units.

You can read and refer to the Condo Guide from the moment you begin to consider buying a condo unit and throughout your condo ownership life cycle.

As of  January 1, 2021, section 72 (1) of the Condominium Act, 1998 (the Condo Act) will require that declarants provide the Condo Guide to buyers of residential pre-construction/new condo units.

Under section 73 (2) of the Condo Act, buyers have a 10-day cooling off period in which they may rescind their agreement of purchase and sale. This 10-day period begins on the later of the date on which the buyer receives the agreement of purchase and sale, disclosure documents, and the Condo Guide.

What does the Condo Guide contain?

The Condo Guide equips prospective buyers of residential pre-construction/new or resale condo units with information on condo ownership and the condo purchase process.

It also contains various topics including moving into a residential pre-construction/new condo unit, condo living, and how condo owners can resolve issues.

Although the Condo Guide is primarily written for condo buyers, if you have recently purchased a unit, or even if you are a long-time condo owner, the Condo Guide may also be of interest to you as it covers many topics relevant to condo ownership.

The Table of Contents was designed by MGCS after consultations with the condo sector and contains necessary and up-to-date topics that are important for all condo buyers to consider.

Can I provide feedback on the Condo Guide?
We are encouraging readers of the Condo Guide to provide feedback regarding areas for enhancement. Taking part in this feedback survey allows the CAO and MGCS to continue to develop a Condo Guide that best meets the needs of prospective condo buyers, condo owners, and the condo sector.

Guide to buying preconstruction condos



In this blog I will try to explain as much as possible (and the topic is extensive) about the process and key factors when buying a preconstruction condominium. The below applies to Ontario, and more specifically the Greater Toronto Area (GTA).

Selecting the Location

Arguably the most important factor when buying real estate, especially if one of the goals is capital appreciation, is the location. Quality location is not always easy to determine, one needs to look at the current surroundings, future plans and developments of the area, and the possibility of gentrification. Less than desirable areas now may look much different in 10 years after a number of condo projects have been completed. Proximity to public transit can not be understated, ease of access to public transit has a large impact on the value of the surrounding area. Additional examples of questions surrounding the location are: how long it will take to get downtown, is the building currently in development next to the condominium a new arts center or homeless shelter, etc. You also need to look at all the negative factors of the surrounding area (e.g. high crime rates) to decide whether the project is worth investing in.

Choosing the Right Developer

Not all developers are the same, the quality they put out differ, and in worse case scenarios they never get the construction off the ground. I have written a blog regarding already, there have been many around the GTA in the recent years (Cosmos, Kennedy Gardens, to name a few). If you happen to be the unlucky one to invest in one of those, especially if this is your first venture into preconstructions, it could cause a major setback in any future ventures down the road.

Build quality is also very important, poor quality construction will result in a cheap look and more repairs. A quick google search will give you a good idea of which builders are better than the others.

The bottom line is, do your due diligence and select a builder that a has a long history of successfully completing projects in Canada.

Purpose of the Purchase

There are pretty much two options, you either buy it as an investment or for your own enjoyment. In both cases, cost will be a main factor. The developer will charge different amounts for exactly the same unit depending on the location of the unit within the building. Other factors that affect price include:

· Proximity to the elevator, garbage chute, and facilities: units next to these will be noisier and experience more hallway traffic.

· View: no need for a detailed explanation here, a great view will demand a premium price.

· Floor premium: generally, the higher the floor the higher the cost, the odds of having a good view on the 25th floor are better than on the 5th floor, also the noise from the street will be more noticeable on the lower floors.

· Layout: not all units will have perfect layouts, the developers are limited by the footprint, while some units will be very good, others may have long hallways with wasted space. For small units where space is at the premium this is a very important factor to consider.

· Ceiling height: 8 foot ceilings feels and look quite different than 9 or 10 footers, some projects have consistent floor heights, others differentiate starting at certain floors.

It’s clear that units on higher floors with great views away from the garbage chute will be more expensive than second floor unit with facilities next to it, so which one should you buy? Are you buying it for yourself or as an investment? If as an investment, your main concern should be the return on investment and less expensive units will most likely make more sense for you. You maybe able to get a bit of a premium when renting higher floor units but it’s likely offset by the higher cost of purchase. If you are buying for yourself the cost is still very important, but so is the ability to enjoy your own property.

Cost per Square Foot vs. Total Cost

When buying a house, you never hear about cost per square foot. When purchasing a condo, both total and per square foot costs are important factors needed to be considered. Let’s use an example of two units that are the same size (500 square feet): one is $1,000 per square foot, the other is $1,100. The more expensive unit has a great layout with no wasted space, the less expensive unit has a long hallway and essentially 80 square feet that cannot be properly utilized. In this scenario, the more expensive unit is actually cheaper when calculating the usable space. The cost per usable space of the less expensive unit is now $1,190. Since the layout is better, buying the $550,000 unit maybe a better deal than buying $500,000 unit.

Using the very same example there is an argument to be made that the $500,000 unit is still the better buy. This is especially true when the unit is purchased as a long-term investment. The owner may not be able to charge much premium for renting the $550,000 unit, and even so, the small rent difference would be offset by the mortgage payments, property taxes, etc.

Calculating Cashflow

What is cashflow? In simple terms it is the difference between cash coming in and cash going out. The cash flow can be positive (more coming in than going out), neutral, or negative. If the condo is owner occupied the cashflow will obviously be negative (make sure you can afford to carry the costs). If you are an investor in the GTA, the bad news for you is that with the current prices, putting 20% down, you will not be able to generate positive or neutral cashflow and therefore will be negative (how much will depend on the project and unit). To calculate the cashflow you will deduct all payments related to the condo (mortgage, condo fees, insurance, property taxes, repairs, etc.). Before investing in the condo make sure you are able to carry the negative cashflow for an extended period of time. Keep in mind that both rental income and expenses will go up, but one may outpace another (expect increase in condo fees, the developers are known for underestimating the amount).

Calculating Rental Income

There is a difference between calculating cashflow and rental income, you may be in a negative cashflow position yet still be generating a profit which will further negatively affect your cashflow since taxes will be paid. The biggest factor here are mortgage payments. For example, you are in a negative cashflow position of $500 each month, your monthly mortgage payment is $1,200, of this amount $800 goes towards the principal repayment, and $400 is mortgage interest expense. In this scenario, you are generating a negative cashflow of $500 per month while still creating a monthly taxable profit of $300.

Costs to Purchase

There are costs associated with a purchase of any real estate such as land transfer tax and legal fees. In addition, you will pay fees associated with the acquisition of a brand new unit from the builder and it is very important you familiarize yourself with what you can expect as the amount can be significant. Since every condo builder is required to be registered under Tarion Warranty you will need to pay Tarion fees (up to $2,034, the amount is based on the purchase price).

The most important fees to get familiar with are development charges, I can’t emphasize enough the fact that you need to ensure the fees are capped and you need to know exactly how much you will be paying. What are development charges? Basically, the municipality is charging exuberant fees to the builder for allowing them to build the project, the fees tend to go up each year, and with the municipalities being strapped for cash, the trend to increase the fees is going to continue, in some cases they may double from one year to another. If the fees are not capped in your contract you may end up paying a much higher amount than you would expect, either way expect anywhere between $5,000 to $30,000 or even more in development fees depending on the project and your unit.

You may also be responsible for utility hook up fees (expect a few thousand for this).


This topic probably deserves a blog on its own, therefore I will just touch on the basics.

Assignment is simply the ability to buy or sell a unit that the developer already sold to a buyer.

Building a condo takes many years, some investors already have an assignment (selling before the unit is completed) on their mind, for others simply circumstances change, they need cash, the value went up and they want profit now.

To carry on with the assignment there needs to be a clause in your contract with the developer allowing assignments (the developers charge assignment fee, some projects don’t permit the assignments), since the unit is not yet completed the purchaser is not buying a unit, but the right to own the unit when it’s completed.

The seller is called the assignor, the buyer is called assignee, the assignee better be prepared to have plenty of cash on hand as they should be able to pay for the deposit the assignor paid to the developer and the profit on the unit. The assignee will also need to pay for Harmonized Sales Tax (HST), development charges, etc.

Not all assignments are sold at a profit, if you know what you are doing you can score a great deal, it all depends how desperate the assignor is to unload the unit.

Assignments are harder to find as they are not advertised on MLS.

10 Day Cooling Off Period

The cooling off period is pretty unique among the real estate transactions, unlike resale or non-condo residential preconstruction which doesn’t allow for a cooling off period, brand new condominiums purchased from the builder by law do allow the cooling off period. What this means is you can change your mind and get the deposit back during a period of 10 days (keep in mind it’s 10 days, not 10 business days).

The 10 day period starts from the time you receive copy of signed purchase and sale agreement or the disclosure statement, which ever comes first.

You have the right to cancel the agreement within 10 days of any material change to the disclosure statement.

During the 10 day period you should have your lawyer review the agreement. Additionally, talk to your mortgage broker regarding pre-approval.

HST Rebate

HST rebate rules apply to all preconstruction residential real estate. The sale of the unit is a taxable sale (meaning the seller is charging the consumer sales tax), no different than buying a car from a dealer, or a computer from Staples. The difference is there are rebates, both federal and provincial, available for the purchase of new real estate. The federal portion of the rebate is available up to a purchase price of $450,000. Sadly, the vast majority of the new condos purchased around GTA will be more than the threshold, thankfully, the province of Ontario doesn’t put any cap on the maximum price purchase and you will qualify for the rebate if you purchase the condo as principal residence, or as an investment property and have a 1 year residential lease signed in place.

In majority of cases the advertised price includes the amount of HST and is discounted by the amount of the rebate. The maximum rebate available for the provincial part of HST is $24K if you are purchasing a principal residence the rebate will be assigned to the builder, if you are buying it as an investment you will need to pay additional $24K to the builder and apply for $24K rebate from CRA. It usually takes a couple of months to get the refund from CRA.

Why Preconstruction Instead of Resale

Number of factors come into play when choosing preconstruction over resale. The buyer may not be ready or willing to own the unit now but is forward thinking and expects to be ready to own a condo in few years. The deposit structure also plays a significant role, instead of dishing out the full amount of the deposit, the builder will often have a deposit schedule spread out over number of months or even years.

Interim Occupancy Period and Fees

Occupancy period is when the developer allows you to move into the unit before the title is transferred. It takes a long time to complete the project, the lower floor units are completed earlier than higher floor units therefore the occupancy period will likely be longer for lower floor units than higher floor units. During that period, you will not be making mortgage payments, but you will be paying occupancy fees to the developer until you take the ownership. The occupancy fees are governed by Ontario Condominium Act, and the structure of the payments is designed to allow the builder to break even abd not to make a profit.

During the occupancy period the elevators will be in service, on the other hand amenities such as gym and swimming pool will not be open, you will also experience noise and all other inconveniences associated with construction.

Design Options

Around one year before occupancy you will be invited to pick your design options, this is not the time to upgrade or downgrade, this was done at the time of signing the contract, but it is the time to select the finishes matching your taste. As a side note if you are buying the unit as an investment, hopefully you have selected no upgrades when signing the contract, as there is no financial benefit of upgrades if you are renting out the unit.

Title Transfer

Title transfer usually occurs approximately 3 to 12 months after your occupancy period begins, the condo corporation can be formed, you will make the final and full payments for the unit, arrange the mortgage, pay all the closing costs etc.

Tarion Warranty

Tarion warranty is another topic deserving a blog on it’s own, instead of copying what can be found on the Tarion website please have a look here at what you need to know in more details, the main topics are below:

· Tarion offers defects warranty as well as deposit protection warranty

· All condo builders must be Tarion registered

· Defects warranty expires in the following periods: 1, 2 and 7 years, the longer the warranty, the less it covers.

· The warranties are for within units and common elements.

· PDI (Pre-Delivery Inspection) happens before you receive the keys to your unit.

· 1-year warranty claims can be done during first and last 30 days of the year, 2 and 7 year warranty claims can be made anytime.

Condo Fees

Condo fees are another significant factor when making purchase decisions. When buying resale, the history of the monthly fees is already established, and by analysing the status certificate and the reserve fund you can predict with a good amount of certainty what will happen in the near future. With preconstruction condos it gets more complicated. The developer may advertise low initial monthly fees to attract the buyers, and there is a likelihood of increases a few years down the road, in general here is what you need to take into consideration:

· Small boutique condos with limited number of units will have higher monthly fees than large projects

· The more amenities the more the fees

· Luxury buildings will be more expensive to maintain than more down to earth projects.

There is good news for new condo owners. Back in the day older condos were not mandated to have a periodic reserve studies done. The current requirements mandated under the Condominium Act regulate the matter in a very strict manner; the studies have to be done every 3 years, and the minimum balance in the fund has to be maintained. This requirement hopefully reduces the amount of unexpected condo fee increases and special assessments.

Plan B

Here is a story I hear all the time, in 2014 I bought a condo for $300K, the title transferred in 2018, the value at that time was $500K, and I rented for a year to get the HST rebate. Another unit sold on assignment for $150K profit. Great, guess what, this will not happen all the time, and will certainly not continue forever. It is always wise to have a Plan B if the market turns south. Be prepared to hold onto the investment if your initial goal was a quick flip. Patience is one of the most important virtues when investing in the real estate. The cost of buying and selling real estate is very high, it will hurt you even more if you happen to be forced to sell when you don’t want to.

Developer's Unit Allocation

By the time the official opening for the public happens, up to 80% of the units may already have been sold. This means that if you waited, did not want to use an agent, or simply missed the news, you will have no chance of getting the better units, and the prices may have already gone up.

The typical unit allocation, in chronological order, is as follows:

· Family and friends: no, not like Lowe’s family and friends where everyone is related, it is a narrow and close circle. Unless you are family or a friend, you are not getting first pick on a unit.

· Platinum VIP agents: each developer deals with a very small group of preferred agents, those agents will be allocated a certain number of units which in turn will be sold to their best clients (e.g. investors with deep pockets). If you are a rookie investor and this is your first purchase, you may not be able to get a unit in this phase either.

· VIP agents: this is where you have a good chance of getting some decent units, the agent may offer you some extra incentives for representing you.

· All other agents: by this time 50-70% of the units have already sold, but still some good units are available and possible extra incentives from the agent representing you.

· Pre-registrants.

· Grand opening to the public: this would have been you unless you have read this blog, waiting outside for hours to find out that 80-90% of the units have already been sold.

With each phase the choice gets smaller and the price may get higher. Your goal should be to get in early and scoop the best unit available. There is an outside chance that you may get a decent deal (the price will not be reduced but you may get free upgrades) when there are a few units left lingering around and the developer wants to close the sales office, but in general, don’t wait.


I have been asked this numerous times, what needs to be done to get the unit with an agent, and what are worksheets. Worksheets, in the most simplest of terms, is an information sheet your agent will submit on your behalf to the builder and will include your choice (usually 3 to 5) of preferred units along with personal information such as your name, current address, SIN along with proof of identity. Usually a worksheet submission date is set by the developer. By that time you need to be familiar with the project, units, pricing, layouts etc. The worksheet submission does not constitute an offer, you are not committed to buy until you sign a purchase and sale agreement, and even then, there is a 10 day cooling off period.

Hopefully within a few days you will receive the answer from your agent advising you the unit has been allocated to you, and you can then proceed with a purchase.

After reading this blog, my hope is that you have gained a basic understanding of the process of buying preconstruction condominiums. It does not cover every detail but should at the very least help you understand the basics and avoid some mistakes first-time condo buyers can make.

Delayed Occupancy

Probably more often than not in today’s new home builds – but understanding your rights as a purchaser and the responsibilities of your developer are key to determining whether you should apply for compensation from your builder.
Our team is well versed in occupancy legislation and will help you receive the money you are entitled to in the case of Occupancy Delays.
“Many of our clients come to us not knowing if they qualify, but they are frustrated with the delays they have experienced with their builder. Condominium developers are notorious for pushing the envelope when it comes to meeting occupancy dates. Purchasers have rights and the more you know, the more power you have and it might just mean up to $7,500 back in your pocket. That’s something worth investigating.” – Mark Purdy
They Delay. They Should Pay.
Your Rights
You have the right to occupancy of your new home based on the dates confirmed by your builder, either in the Purchase Agreement, or within the letter(s) provided, within an accepted period of time prior to occupancy. If that occupancy is delayed and sufficient notice is not provided, the purchaser may qualify for compensation up to $7,500.
  • Occupancy is made available after the Firm Occupancy Date.
  • The builder failed to provide sufficient notice when changing the Tentative Occupancy Dates or notify you of unavoidable delays.
  • The builder missed the Outside Occupancy Date.
  • You exercised your right to terminate the purchase agreement due to delay.


You must file for occupancy compensation within 1 year of occupancy, or you lose the right to claim.

Builder’s Responsibility
  • Your builder is responsible for providing you, the purchaser, with written notice of any delay in occupancy with a minimum of 90 days written notice. Provided they meet this minimum of 90 days’ notice they can change the tentative occupancy date as often as they like, provided they don’t go beyond the Outside Occupancy Date.
  • Once a Firm Occupancy Date is set the builder must meet this date unless an unavoidable delay occurs.
  • The delay in case of an Unavoidable Delay may not be longer in duration than the actual length of the delay. For example, if they are delayed by 10 business days due to a worker’s strike, your builder may not delay by more than 10



Understanding Your Purchase Agreement
Don’t get caught in a war of words. Understanding your PURCHASE AGREEMENT is key to ensuring you know your rights and the responsibilities of your builder. Let’s look at the most common terms you might see:
A written document in which the purchaser agrees to buy certain real estate and the seller agrees to sell under stated terms and conditions. This is the offer-to-purchase document that makes up the core of a real estate transaction.
This is an agreement of all key dates for occupancy and purchaser termination. This is in place to protect your rights as a purchaser.
The completion and move-in date that you and your builder agreed upon. If this date is not met, your builder must set a Delayed Occupancy Date and you are entitled to delayed occupancy compensation.
A new date, which has been provided by the builder. If a delayed occupancy date is set, you are eligible for occupancy compensation.
The builder’s best guess as to the estimated time of occupancy. This date will either by confirmed or extended as building progresses
This is the latest date that your builder agreed to provide you with occupancy of your condominium unit or home. This is decided upon signing of the purchase agreement as is included in the Statement of Critical Dates.
Builders are protected against delays that are considered unavoidable., such as natural disasters, workers’ strike, fire, etc… If there are unavoidable circumstances, there is a provision that allows the builder to negotiate an extended occupancy date by mutual consent.
If your home is not complete and move-in ready by the Outside Occupancy Date, you, as a purchaser, have a 30-day period in which to terminate the agreement. You are still eligible for occupancy compensation even if you terminate the deal.

Rent increase guideline

The guideline is the maximum a landlord can increase most tenants’ rent during a year without the approval of the Landlord and Tenant Board.

Rent increase guideline for 2020

The rent increase guideline is 2.2% for increases between January 1 and December 31, 2020.

Who it applies to

The guideline applies to most private residential rental units covered by the Residential Tenancies Act.

The guideline does not apply to:

  • vacant residential units
  • social housing units
  • nursing homes
  • commercial properties

This guideline also does not apply to new buildings, additions to existing buildings and most new basement apartments that are occupied for the first time for residential purposes after November 15, 2018.

When can rent be increased

In most cases, the rent for a unit can be increased 12 months after:

  • the last rent increase
  • a tenant first moves in

A tenant must be given written notice of a rent increase at least 90 days before it takes effect.

How the guideline is calculated

It is calculated using the Ontario Consumer Price Index, a Statistics Canada tool that measures inflation and economic conditions over a year. Data from June to May is used to determine the guideline for the following year.

A sample calculation

Your monthly rent was increased to $1,000 on June 1, 2019. The guideline for 2020 is 2.2%. Therefore:

  • an increase of 2.2% on $1,000 = $22.00
  • $1,000 + $22.00 = $1,022.00

Your landlord could lawfully increase your rent payment 12 months later on June 1, 2020 up to $1,022.00 per month

Your landlord would need to provide you written notice at least 90 days before June 1, 2020.

Previous rent increase guidelines

The chart below illustrates yearly rent increases, in Ontario, from 1991 to 2019.

Land Transfer Tax

O. Reg. 343/18: Timing of Tax Payable Under Subsection 3(2) of the Act was filed on April 26, 2018 to provide quarterly reporting periods for Land Transfer Tax on qualifying unregistered dispositions of a beneficial interest in land.

Commencing on December 16, 2017, new provincial land transfer tax statements are being incorporated into Teraview, Ontario's electronic land registration system. Corresponding statements have been added to Ontario's affidavits and forms

The new statements must be completed for all conveyances registered after December 15, 2017.

Please note that applicable statements are required even if the conveyance is not subject to the Non-Resident Speculation Tax. The new statements include explanations if the Non-Resident Speculation Tax is not payable.

Please also note that there are new statements regarding solicitor obligations and record keeping requirements of transferees.

Commencing December 30, 2017, Teraview will accept Non-Resident Speculation Tax payments at the time of registration. However, Land Registry Offices will not accept payments of Non-Resident Speculation Tax. For registrations of instruments at a Land Registry Office on which Non-Resident Speculation Tax is payable, both Non-Resident Speculation Tax and land transfer tax must be pre-paid to the Ministry of Finance.

When you buy land or an interest in land in Ontario, you pay Ontario's land transfer tax. Land includes, but is not limited to, any buildings, buildings to be constructed, and fixtures (such as light fixtures, built‑in appliances and cabinetry). In addition, for certain transfers of land within the Greater Golden Horseshoe Region, a 15% Non‑Resident Speculation Tax (NRST) may apply.

Who pays land transfer tax?

When you acquire land or a beneficial interest in land, you pay land transfer tax to the province when the transaction closes.

Land transfer tax is normally based on the amount paid for the land, in addition to the amount remaining on any mortgage or debt assumed as part of the arrangement to buy the land.

In some cases, land transfer tax is based on the fair market value of the land, such as in the following examples:

  • the transfer of a lease with a remaining term that can exceed 50 years
  • the transfer of land from a corporation to one of its shareholders, or
  • the transfer of land to a corporation, if shares of the corporation are issued.

Providing additional information

On April 24, 2017, the province began collecting additional information to better understand trends in the housing market through the land transfer tax system. This additional data will be used for the administration and enforcement of the Land Transfer Tax Act, and to support evidence based policy development with respect to Ontario's real estate market.

All persons who purchase or acquire land in Ontario that contains at least one and not more than six single family residences, or agricultural land, are required to provide this additional information.

First‑time homebuyers

If you are a first‑time homebuyer, you may be eligible for a refund of all or part of the land transfer tax.

Other land taxes

The Non-Resident Speculation Tax (NRST) is a 15 per cent tax on the purchase or acquisition of an interest in residential property located in the Greater Golden Horseshoe Region by individuals who are not citizens or permanent residents of Canada or by foreign corporations (foreign entities) and taxable trustees.

Local municipalities charge a tax on the residential or business property you own. If you have questions about municipal property tax, contact your local municipality. If your property is located in an unorganized territory (an area without municipal organization) of Ontario, property tax is collected through the provincial land tax program administered by the Provincial Land Tax Office in Thunder Bay.

If you buy property in the City of Toronto, you may also pay the City of Toronto's own municipal land transfer tax.

Harmonized sales tax

The harmonized sales tax (HST) applies to newly constructed homes or substantially renovated homes, but does not apply to resale homes. Buyers of new homes may receive a rebate of up to $24,000 of the provincial portion (8%) of the HST. If you have any questions about the HST rebate please contact the Canada Revenue Agency at 1‑800‑959‑1953.

Paying the tax

Ontario's land transfer tax is payable when the transfer is registered.

If the transfer is not registered within 30 days of closing, you must submit a Return on the Acquisition of a Beneficial Interest in Land form to the Ministry of Finance, along with the payment of tax within 30 days after the closing date.

Some person(s) do not pay land transfer tax on certain transfers of land. The exemptions include, but are not limited to:

  • certain transfers between spouses
  • certain transfers from an individual to his or her family business corporation
  • certain transfers of farmed land between family members
  • certain transfers of a life lease from a non‑profit organization or a charity.

A deferral of land transfer tax may be available when land is transferred between affiliated corporations, and notice of the transfer is not registered on title.

General anti‑avoidance rule (GAAR)

The Land Transfer Tax Act was amended to set out a general anti‑avoidance rule. This rule applies to transactions that are completed after May 1, 2014. It also applies to transactions that occurred on or before May 1, 2014 if they are part of a series of transactions that is completed after May 1, 2014.

Overpayment and refunds

If you overpaid land transfer tax, including Non-Resident Speculation Tax, you can ask the Ministry of Finance for a refund. To request a refund, follow the steps below:

Write a letter explaining the reason for your refund request and include:

  • a copy of the registered conveyance
  • evidence of the amount of tax paid on registration
  • a copy of the agreement of purchase and sale (including all schedules and amendments)
  • a copy of the statement of adjustments, and
    if you request a refund for overpayment of Non-Resident Speculation Tax, a completed Ontario Land Transfer Tax Refund/Rebate Affidavit, with section 1 completed.

Mail your letter to:
Ministry of Finance
Land Taxes Section
33 King Street West, 3rd Floor
Oshawa ON L1H 8H9

Time limits

There is no time restriction where a refund is requested for land transfer tax paid on registration of a notice or caution where the transfer contemplated in the agreement referred to in the notice or caution did not take place.

First-time homebuyer refund requests must be made within 18 months after the date of the transfer.

All other refund requests must be made within 4 years after the date of payment of the tax.

For rebates of Non-Resident Speculation Tax, read the Non-Resident Speculation Tax. Timelimits for rebates of Non-Resident Speculation Tax may be shorter than for refunds.

Non-Resident Speculation Tax


The NRST is a 15 per cent tax on the purchase or acquisition of an interest in residential property located in the Greater Golden Horseshoe Region (GGH) by individuals who are not citizens or permanent residents of Canada or by foreign corporations (foreign entities) and taxable trustees.

The NRST applies in addition to the general LTT in Ontario.

The GGH includes the following geographic areas:

  • City of Barrie
  • County of Brant
  • City of Brantford
  • County of Dufferin
  • Regional Municipality of Durham
  • City of Guelph
  • Haldimand County
  • Regional Municipality of Halton
  • City of Hamilton
  • City of Kawartha Lakes
  • Regional Municipality of Niagara
  • County of Northumberland
  • City of Orillia
  • Regional Municipality of Peel
  • City of Peterborough
  • County of Peterborough
  • County of Simcoe
  • City of Toronto
  • Regional Municipality of Waterloo
  • County of Wellington, and
  • Regional Municipality of York.

Refer to the map and the FAQs at the end of this page for more information.

Effective date

The NRST took effect April 21, 2017.

Binding agreements of purchase and sale signed on or before April 20, 2017, and not assigned to another person after April 20, 2017, are not subject to the NRST.

Entities subject to the NRST

The NRST applies to foreign entities or taxable trustees who purchase or acquire residential property in the GGH.

A foreign entity is either a foreign corporation or a foreign national.

A foreign corporation is a corporation that is one of the following:

  1. A corporation that is not incorporated in Canada.
  2. A corporation, the shares of which are not listed on a stock exchange in Canada, that is incorporated in Canada and is controlled, directly or indirectly in any manner whatever, within the meaning of section 256 of the Income Tax Act (Canada), by one or more of the following:
  • a foreign national
  • a corporation that is not incorporated in Canada
  • a corporation that would, if each share of the corporation's capital stock that is owned by a foreign national or by a corporation described in paragraph 1 were owned by a particular person, be controlled, directly or indirectly in any manner whatsoever, within the meaning of section 256 of the Income Tax Act (Canada), by the particular person.

A foreign national, as defined in the Immigration and Refugee Protection Act (Canada), is an individual who is not a Canadian citizen or permanent resident of Canada.

A permanent resident means a person who has acquired permanent resident status and has not subsequently lost that status under section 46 of the Immigration and Refugee Protection Act (Canada).

A taxable trustee means a trustee of:

  • a trust with at least one trustee that is a foreign entity, or
  • a trust with no foreign entity trustees if a beneficiary of the trust is a foreign entity.

Taxable trustee does not include a trustee acting for the following types of trusts:

  1. A mutual fund trust within the meaning of subsection 132 (6) of the Income Tax Act (Canada).
  2. A real estate investment trust as defined in subsection 122.1 (1) of the Income Tax Act (Canada).
  3. A SIFT trust as defined in subsection 122.1 (1) of the Income Tax Act (Canada).

Types of property subject to the NRST

The NRST applies to the transfer of land which contains at least one and not more than six single family residences. Examples of land containing one single family residence include land containing a detached house, a semi‑detached house, a townhouse or a condominium unit. In a situation involving the purchase of multiple condominium units, each unit would be considered land containing one single family residence. Examples of land containing more than one single family residence that are subject to the tax include land containing duplexes, triplexes, fourplexes, fiveplexes and sixplexes.

The NRST does not apply to other types of land such as land containing multi‑residential rental apartment buildings with more than six units, agricultural land, commercial land or industrial land.

The NRST applies on the value of the consideration for the residential property. If the land transferred includes both residential property and another type of property, the NRST applies on the portion of the value of the consideration attributable to the residential property. For example, if the purchase price of the transaction is $1,000,000 and contains one single family residence with a value of the consideration of $400,000, and commercial land with a value of the consideration of $600,000, the 15 per cent NRST would apply to only the $400,000 portion.

General application

The 15 per cent NRST applies to the value of the consideration for a transfer of residential property if any one of the transferees is a foreign entity or taxable trustee.

For example, if a transfer of residential property is made to four transferees, one of whom is a foreign entity that acquires a 25 per cent share in the land, the NRST would apply to 100 per cent of the value of the consideration for the transfer.

Each transferee is jointly and severally liable for any NRST payable. If a foreign entity or taxable trustee does not pay the NRST, the other transferees will be required to pay the tax. This applies even if the other transferees are Canadian citizens or permanent residents of Canada.

The NRST does not apply when a person purchases or acquires residential property as a trustee of a mutual fund trust, real estate investment trust or specified investment flow‑through trust.

The NRST applies to unregistered dispositions of a beneficial interest in residential property. This includes purchases and acquisitions of residential property where section 3 of the Land Transfer Tax Act is applicable.


An exemption from the NRST may be available in the following situations:

  • Nominee – A foreign national who is nominated under the Ontario Immigrant Nominee Program (nominee) at the time of the purchase or acquisition, and the foreign national has applied or certifies that they will apply to become a permanent resident of Canada
  • Protected person – A foreign national on whom refugee protection is conferred (protected person) under section 95 of the Immigration and Refugee Protection Act (Canada) at the time of the purchase or acquisition, or
  • Spouse – A foreign national who jointly purchases residential property with a spouse, who is a Canadian citizen, permanent resident of Canada, nominee or protected person.
    Under the Land Transfer Tax Act, spouse means “spouse” as defined in section 29 of the Family Law Act. This includes either of two persons who are married to each other, or who are not married to each other and who have cohabited,
  1. continuously for a period of not less than three years, or
  2. in a relationship of some permanence, if they are the natural or adoptive parents of a child.

To qualify for an exemption, the foreign national (and if applicable their spouse) must certify they will occupy the property as their principal residence.

The exemption applies if the Canadian citizen, permanent resident of Canada, nominee or protected person and his or her foreign national spouse purchased the property with other individuals who are Canadian citizens, permanent residents of Canada, nominees, or protected persons.

For the spousal exemption, multiple spousal units may also hold title, so long as one spouse is a Canadian citizen, permanent resident of Canada, nominee or protected person.

All transferees in the conveyance must also certify that they will occupy the property as their principal residence.

However, the exemption does not apply if the Canadian citizen, permanent resident of Canada, nominee, or protected person and his or her foreign national spouse purchased the property with another foreign national who is not a nominee or protected person. For example, if three parties purchase a property as follows:

  • one Canadian citizen and his or her foreign national spouse, and
  • a third party who is a foreign national (other than a nominee or protected person),

the exemption would not apply and NRST would be payable.

Exemptions in the Act and its regulations that apply to LTT will also apply to the NRST. The deferral and cancellation of LTT for intercorporate transfers between affiliated corporations will also apply to the NRST.



A rebate of the NRST may be available in the following situations:

  • Foreign national who becomes a permanent resident of Canada – The foreign national becomes a permanent resident of Canada within four years of the date of the purchase or acquisition
  • International student – The foreign national is a student who has been enrolled full-time for a continuous period of at least two years from the date of purchase or acquisition in an “approved institution” (under section 8 of Ontario Regulation 70/17 of the Ministry of Training, Colleges, and Universities Act) at a campus located in Ontario. Full-time means enrolled in at least 60 per cent (if the individual does not have a disability) or 40 per cent (if the individual has a disability) of what the approved institution considers to be a full course load for the academic year, or
  • Foreign national working in Ontario – The foreign national has legally worked full-time under a valid work permit in Ontario for a continuous period of at least one year since the date of purchase or acquisition. Full-time means an employment position that requires no fewer than 30 hours of paid work per week over a 12 month period and no fewer than a total of 1,560 hours of paid work over that period.
    To qualify for a rebate, the foreign national must exclusively hold the property, or hold the property exclusively with his or her spouse. The property must also have been occupied as the foreign national's (and if applicable his or her spouse's) principal residence for the duration of the period that begins within 60 days after the date of the purchase or acquisition.

Rebates must be applied for within four years after the day on which the NRST became payable, except for the rebate for a foreign national who becomes a permanent resident of Canada. The rebate for a foreign national who becomes a permanent resident of Canada must be applied for within 90 days of the foreign national becoming a permanent resident, and no application may be made more than four years and 90 days from the date the NRST became payable.

All rebate applications must be made using the Ontario Land Transfer Tax Refund/Rebate form for NRST.

Supporting documentation will be required to substantiate all applications for rebates.

Overpayment of NRST

If NRST has been improperly paid or overpaid, a refund may be applied for using the Ontario Land Transfer Tax Refund/Rebate form for NRST.

Supporting documentation will be required to substantiate all applications for refunds.

Tax avoidance and offences

All transfers of land in Ontario are subject to audit.

Anti‑avoidance provisions will be enforced to ensure the NRST is reported and paid as required. This includes examining circumstances where Canadian citizens or permanent residents of Canada, as taxable trustees, hold property in trust for a foreign entity. This also includes preventing the use of multiple conveyances to avoid the NRST.

Failure to pay the NRST as required may result in a penalty, fine and/or imprisonment.


NRST interest is compounded daily and interest rates are reset every 3 months.

Current interest rates (October 1, 2019 to December 31, 2019):

  • 7% on the NRST you owe to the Ministry of Finance
  • 1% on rebates of the NRST you are eligible for, including as a result of a successful appeal or objection
  • 1% on refunds of the NRST you are eligible for, including as a result of a successful appeal or objection
  • 4% on refunds you are eligible for as a result of a successful appeal or objection from an assessment of the NRST (under section 12 of the Land Transfer Tax Act)

Interest begins to accrue 40 business days after a complete NRST rebate or refund application is received by the Ministry of Finance to the date the rebate or refund is paid.

Note: Interest on a refund as a result of a successful objection or appeal from an assessment of the NRST will be consistent with the general LTT refunds.

Statements regarding NRST at registration

The Ministry of Finance requires an express statement of whether or not a registration is subject to NRST.

Electronic registration (Teraview) – NRST is payable
Effective December 16, 2017, if NRST is payable, statement 9170 must be selected, along with either statement 9171 or statement 9172. The NRST statements are found on the Explanations Tab.

  • 9170 - The transferee(s) has considered the definitions of “designated land” “foreign corporation” “foreign entity”, “foreign national” “specified region”, “taxable trustee” as set out in subsection 1(1) of the Land Transfer Tax Act, and declare one of the following statements:
  • 9171 - This conveyance is subject to additional tax as set out in subsection 2(2.1) of the Act.
  • 9172 - This conveyance is subject to additional tax as set out in subsection 2(2.1) of the Act. This is a conveyance of a combination of “designated land” and land that is not designated land. The transferee(s) has accordingly apportioned the value of the consideration on the basis that the consideration attributable to the conveyance of the designated land is AMOUNT and the remainder of land is used for TEXT purposes.

Electronic registration – NRST is not payable

Effective December 16, 2017, if a registration is not subject to NRST, statement 9173 must be selected, along with one of statements 9174 through 9181.

  • 9173 - The transferee(s) has read and considered the definitions of “designated land” “foreign corporation” “foreign entity”, “foreign national” “specified region”, “taxable trustee” as set out in subsection 1(1) of the Land Transfer Tax Act. The transferee(s) declare that this conveyance is not subject to additional tax as set out in subsection 2(2.1) of the Act because:
  • 9174 - (a) This is not a conveyance of land that is located within the “specified region”.
  • 9175 - (b) This is not a conveyance of “designated land”.
  • 9176 - (c) The transferee(s) is not a “foreign entity” or a “taxable trustee”.
  • 9177 - (d) Subsection 2.1(3) of the Act applies to this conveyance (the land has been conveyed pursuant to an agreement of purchase and sale entered into on or before April 20, 2017, and any assignment of the agreement of purchase and sale to any other person was entered into on or before April 20, 2017).
  • 9178 - (e) Subsection 2.1(4) of the Act applies to this conveyance in that the land is being conveyed to a “nominee” as defined in Ontario Regulation 182/17 and the conveyance satisfies the requirements of section 2 of the Regulation.
  • 9179 - (f) Subsection 2.1(4) of the Act applies to this conveyance in that the land is being conveyed to a “protected person” as defined in Ontario Regulation 182/17 and the conveyance satisfies the requirements of section 3 of the Regulation.
  • 9180 - (g) Subsection 2.1(4) of the Act applies to this conveyance in that the land is being conveyed to a “foreign national” and the foreign national’s “spouse” as defined in subsection 1(1) of the Act, and the conveyance satisfies the requirements of section 4 of the Regulation.
  • 9181 - (h) OTHER [insert text].

If a transferee wants to provide more than one reason as to why NRST is not payable on registration, the transferee may use 9181 and insert the applicable paragraphs, for example:

  • 9181 - (h) OTHER “paragraphs (a), (b) and (c) apply”.

Paper registration

Effective December 16, 2017, the Ministry of Finance requires an express statement of whether or not the registration is subject to NRST. The Land Transfer Tax Affidavit has been amended to accommodate the appropriate statements at paragraph 5. If NRST is payable, paragraph 5(a) must be completed. If NRST is not payable, paragraph 5(b) must be completed.

Unregistered dispositions

The Ministry of Finance requires an express statement of whether or not the disposition is subject to NRST. The Return on the Acquisition of a Beneficial Interest in Land form has been amended to accommodate the appropriate statements at section 10. If NRST is payable, section 10(a) must be completed. If NRST is not payable, section 10(b) must be completed.

Payment of NRST

Electronic registrations
After December 29, 2017, Teraview will accept payments of NRST at the time of registration.

Until December 29, 2017, affected purchasers/transferees must pre‑pay both the LTT and the NRST directly to the Ministry of Finance (MOF). Once the MOF accepts the pre‑payment of the taxes, the transfer may be registered electronically without further payment of LTT or NRST.

The MOF will provide a letter confirming receipt of NRST and LTT with a receipt number.

The MOF will not accept payment of the City of Toronto's municipal land transfer tax. Please contact the City of Toronto about payment of its municipal land transfer tax.

Registrations made at Land Registry Offices (registration on paper)
Land Registry Offices will not accept payment of NRST. For registrations made at a Land Registry Office, if the transfer is subject to NRST, both the LTT and NRST must be pre‑paid directly to the MOF.

The MOF will provide a letter confirming receipt of NRST and LTT with a receipt number.

Dispositions / unregistered transfers

If a transfer will not be registered on title, a Return on the Acquisition of a Beneficial Interest in Land form, along with the payment of the LTT and the NRST must be submitted to the MOF within 30 days of the transfer of land.

How to pre‑pay the Land Transfer Tax and the NRST to the MOF

After December 29, 2017, the Ministry of Finance will continue to accept payment of NRST in advance of registration. Taxpayers who wish to pay NRST directly to the Ministry must also directly pay the applicable LTT to the Ministry.

Registrants who receive Ministry of Finance pre-approval of NRST liability must still complete the applicable NRST statements along with either statement 9089 or statement 9090:

  • 9089 - Tax has been paid directly to the Ministry of Finance and documents endorsed accordingly as confirmed by receipt no. NUMBER (evidence needs to be submitted).
  • 9090 - Ministry of Finance has endorsed documents as follows: “No Land Transfer Tax Payable” (evidence needs to be submitted).

If the conveyance is subject to NRST, registrants must complete statements 9089, 9170 and [9171 or 9172]. Registrants will receive a receipt number for insertion into statement 9089.

If the conveyance is not subject to NRST, registrants must complete either statement 9089 or 9090 along with 9173 and one of statements 9174 through 9181.

The Ministry of Finance suggests submitting all required documents a minimum of five business days prior to the closing of the deal. Please note that this guideline only applies if the ministry is provided with all required documents (properly completed) and payments at the time of submission. In addition, complex files (such as those involving multiple transfers) may take longer to process. As well, taxpayers submitting documentation by courier or mail are requested to submit the material at least 15 days prior to closing.

The following documentation must be submitted to the MOF:

For transfers to be registered and for unregistered transfers / dispositions:

  • Cheque for the LTT and the NRST (certified, if not drawn on the solicitor's trust account), made payable to the “Minister of Finance”
  • Copy of the Agreement of Purchase and Sale, with all schedules attached
  • Copy of the draft Statement of Adjustments (if applicable)
  • If the value of the consideration is based on the fair market value of the land, any appraisals or documentation that is evidence of the fair market value of the land
  • Any additional documents as may be required to determine the value of the consideration

In addition, for transfers to be registered:

  • Authorizing or Cancelling a Representative form(s), completed by each transferee
  • Copy of the Document “in preparation” or three copies of the Transfer/Deed if registration is done on paper
  • If registration is done on paper, two completed Land Transfer Tax Affidavits.

Please submit the required documentation to the following address, either by mail, courier or in person:

Ministry of Finance
Compliance Branch
33 King Street West
Oshawa ON L1H 8H9

Additional information
If you have administrative or technical questions about the NRST, contact:

Ministry of Finance
Land Tax Section
33 King Street West
Oshawa ON L1H 8H9

Toll free: 1‑866‑ONT‑TAXS (1‑866‑668‑8297)
Teletypewriter (TTY): 1‑800‑263‑7776
Fax: 905‑433‑5770
Ministry website:
Map of the Greater Golden Horseshoe Reg

Map of the Greater Golden Horseshoe Region

Frequently Asked Questions about the Non‑Resident Speculation Tax

Is the Non‑Resident Speculation Tax related to the requirement to provide additional information?

The obligation to provide additional information is separate and distinct from the application of the proposed Non‑Resident Speculation Tax (NRST). The NRST applies to certain transactions within the Greater Golden Horseshoe Region (GGH). The requirement to provide additional information applies to certain transactions in all of Ontario. More details on the requirement to provide additional information may be found on our webpage Prescribed Information for the Purposes of Section 5.0.1 Form.

I signed my agreement of purchase and sale on April 19, 2017. I am not a Canadian citizen or a permanent resident of Canada. Do I have to pay the NRST?

There is no NRST payable if the both the seller and the buyer signed a binding agreement of purchase and sale on or before April 20, 2017, and if an assignment of the agreement is not entered into after April 20, 2017.

I am a Canadian citizen living outside of Canada and I wish to purchase land in the Greater Golden Horseshoe Region. Will my purchase be subject to the NRST?

If a Canadian citizen (whether living in Canada or not) buys residential land alone or along with other Canadian citizens or with permanent residents of Canada, he or she will not be subject to NRST. It is not relevant whether any of the Canadian citizens live in Canada or not.

The reference to “not a permanent resident of Canada” refers to a “permanent resident” as defined in the Immigration and Refugee Protection Act (Canada):

"permanent resident means a person who has acquired permanent resident status and has not subsequently lost that status under section 46."

Is the NRST payable on top of the Land Transfer Tax (LTT) or vice versa?

Neither tax is payable on top of the other. NRST and LTT are calculated separately on the value of the consideration for the transfer.

My partner and I are buying a house in Oshawa. I am a citizen of Canada. She is not a citizen or a permanent resident of Canada. Does she have to pay NRST?

If she is not your spouse, NRST will be payable on the full value of the consideration for the transfer of the house. It is not pro‑rated.

If your partner is your spouse, as defined in the Land Transfer Tax Act, the transaction will be exempt from NRST if you are acquiring the house together and no other foreign entities are acquiring an interest in the house (unless the third party is a nominee, protected person, or another spousal unit that also meets the NRST spousal exemption criteria). All transferees must certify that they will occupy the property as their principal residence.

"Spouse" means spouse as defined in section 29 of the Family Law Act. This includes either of two persons who are married to each other, or who are not married to each other and who have cohabited,

  • continuously for a period of not less than three years, or
  • in a relationship of some permanence, if they are the natural or adoptive parents of a child.

My spouse and I are buying a house in Kitchener. I am a citizen of Canada. She is not a citizen or a permanent resident of Canada. My brother is buying the property with us, so all three of us are on title. Do we have to pay NRST?

NRST is not payable on the transaction if your brother is a Canadian citizen, a permanent resident of Canada, a nominee under the Ontario Immigrant Nominee Program, or a person conferred “refugee protection” under section 95 of the Immigration and Refugee Protection Act (Canada). NRST is payable if your brother does not fall into one of the four scenarios listed above. Although there is an exemption for spouses if one of the spouses is a Canadian citizen, permanent resident, nominee or refugee, this exemption does not apply if the spouses purchase the property with a third party who does not fall into one of the four scenarios listed above. All transferees must certify that they will occupy the property as their principal residence.

My business partner and I are buying a triplex in Hamilton. I am a permanent resident of Canada. She is not a citizen or a permanent resident of Canada. She is not my spouse. Does she have to pay NRST?

NRST is payable on the purchase by both of you and calculated on the full value of the consideration for the triplex.

However, the purchase may be exempt from NRST if your business partner becomes a nominee or a protected person prior to the date of purchase.

I am buying a house in Mississauga and I am not a Canadian citizen or a permanent resident of Canada. I have applied to be a permanent resident, and hope to complete that process in a year. Do I have to pay the NRST?

If you are not a permanent resident of Canada at the time your deal closes, you must pay the NRST. If you become a permanent resident or citizen of Canada within four years from the date of closing the deal, you may apply for a rebate of the NRST. In order to be eligible for the rebate, you must exclusively hold the property, or hold the property exclusively with your spouse, and the property must have been used as your (and if applicable your spouse's) principal residence for the duration of the period from within 60 days of the date of closing the deal to the day you apply for the rebate. You have 90 days from the date of becoming a permanent resident to apply for the rebate.

My daughter and I are not citizens of Canada or permanent residents of Canada. My daughter will be attending university and she wants to buy a home in Toronto to live in while she attends the university. Does she have to pay the NRST?

The NRST will be payable on the purchase of the home. She may apply for a rebate of the NRST once the following conditions are met:

  • the home must be purchased only by your daughter (or your daughter and her spouse, if applicable)
  • neither you nor anyone else has any beneficial interest in the home
  • she is enrolled as a full‑time student for a continuous period of at least two years in an “approved institution” (as outlined in Ontario Regulation 70/17 of the Ministry of Training, Colleges, and Universities Act) at a campus located in Ontario, and
  • the house is occupied as her principal residence within 60 days after the date of the purchase or acquisition, for the two year period set out above.

If she meets all of the requirements listed above, an application for this rebate must be made within four years after the date of purchase or acquisition.

I am buying a house in Barrie, while I have a full‑time job. I am not a Canadian citizen or a permanent resident of Canada. Do I have to pay NRST?

Yes, you will have to pay the NRST. You may be eligible for a rebate of the NRST if you legally work full‑time in Ontario for a continuous period of one year from the date of purchase or acquisition. In order to be eligible for the rebate, you must exclusively hold the property, or hold the property exclusively with your spouse, and the property must have been used as your (and if applicable your spouse's) principal residence 60 days after the date of the purchase or acquisition for the duration of the year.

What do I do if I registered without prepaying the NRST?

Penalty and interest provisions will apply to the non‑payment of the NRST. The MOF has a Voluntary Disclosure Policy that states that if you voluntarily report and pay unpaid tax, with interest, the ministry will not impose a penalty on you. All documentation must be provided along with the voluntary reporting and payment of NRST.

If MOF has not finished processing my prepayment of NRST by the closing date, how do I close my deal?

For closing after December 29, 2017, Teraview will accept payments of NRST. For pre-payments of NRST and LTT, we suggest that the request to pre‑pay the NRST and LTT be submitted with all required documentation a minimum of five business days prior to the closing of the deal.

If I prepay the NRST and LTT, but my deal does not close, can I get my money back?

If the deal did not close because it is not going to be completed, MOF will refund the money paid. However, along with all the required documentation to process a refund request, MOF also requires a signed mutual release proving that the deal is at an end.

If the deal has not closed and the agreement has been amended such that the closing date has been extended, the MOF will not issue a refund.

My client is a landed immigrant of Canada. Is he subject to the NRST when buying a home in Mississauga?

The term “Landed Immigrant” is an outdated term that is no longer used by Immigration, Refugees and Citizenship Canada. You will have to confirm with your client whether or not he is a permanent resident of Canada.

In which specific geographic regions are transfers subject to the NRST?

Transactions within the Greater Golden Horseshoe Region are subject to NRST. The Greater Golden Horseshoe Region contains the following areas:

When will the NRST statement be a mandatory part of the transfer form?

If NRST is payable, transfers without completed NRST statements will not be accepted for registration. If NRST is not payable, until December 29, 2017 , registrations may be completed without the completion of the NRST statements. Effective December 30, 2017 , transfers without completed NRST statements will not be accepted for registration.

How will the audit process work?

The Ministry's authority to audit for provincial LTT liability (including liability for NRST) is set out in section 10 of the Land Transfer Tax Act. Refer to the general information about ministry audits.

Are non‑share capital corporations such as Condominiums or Co‑operatives subject to NRST?

Yes, if the transferee is a foreign corporation that acquires land which contains at least one and not more than six single family residences in the Greater Golden Horseshoe Region.

Are Canadian citizens who are outside of Canada for more than 183 days, i.e. snow birds, subject to the NRST?

A Canadian citizen would not generally be subject to the NRST even if the individual is not living in Canada.

Are assignors subject to the NRST?

The NRST would not apply to an assignor if the assignor does not acquire a beneficial interest in the land for the purposes of the Land Transfer Tax Act.

I entered into an Agreement of Purchase and Sale before April 21, 2017. The Agreement is being assigned after April 20, 2017, does the NRST apply?

If the Agreement of Purchase and Sale is assigned after April 20, 2017, the NRST would apply.

If an Agreement of Purchase and Sale is entered into after April 20, 2017, by a foreign entity and subsequently assigned to a Canadian citizen or permanent resident of Canada does NRST have to be paid by the Canadian citizen or permanent resident?

The Canadian citizen or permanent resident of Canada who acquired the assignment would not be subject to the NRST, unless he or she is a taxable trustee to which the NRST applies.

I am buying a property that has both residential and non‑residential land. How do I calculate the apportionment of consideration that is attributable to residential land (subject to NRST) and non‑residential land (not subject to NRST)?

A reasonable self‑assessment is required by taxpayers in apportioning the value of the consideration for the purposes of the NRST. The apportionment would be based on the value of the residential land as compared to the non‑residential land, not the square footage of the two.

In a new home purchase how is the value of the consideration to which NRST applies determined?

The value of the consideration for NRST purposes will be determined in accordance with the existing provisions of the Land Transfer Tax Act.

I would like to authorize a representative to pay the NRST on my behalf. How do I do this?

The Authorizing or Cancelling a Representative form allows you to authorize the Ministry of Finance to deal with another individual (such as your spouse, other family member, accountant, tax consultant or solicitor) as your representative for Ontario tax or program matters.

How should Part 1 of the Authorizing or Cancelling a Representative form be completed in order to authorize payment of the NRST by a representative?

The box next to the Land Transfer Tax Act should be chosen.

Will Part 1 of the Authorizing or Cancelling a Representative form be updated to reflect the appropriate legislation under which the NRST is being paid?

No, the NRST is incorporated into the Land Transfer Tax Act, therefore Part 1 of the form does not need to be updated.

What are the appropriate account or reference number(s) referred to in Part 1 of the Authorizing or Cancelling a Representative form?

This is the account number or reference number assigned by the Ministry of Finance. If the ministry has not provided an account number or reference number to the client who is completing the Authorizing or Cancelling a Representative form, then the field for the account or reference number will remain blank.

How should Part 2 of the Authorizing or Cancelling a Representative form be completed so that the Scope of Authorization is limited to the payment of land transfer tax and the NRST?

If the client wants the representative to act only with respect to LTT, which includes NRST, the client selects the box Only the matters specified below. Then the client is to select the box Other and write the text Payment of LTT and NRST.

Can I pay NRST by couriering funds to Oshawa or do I have to pay in person?

The NRST can be paid to the Ministry of Finance in Oshawa by courier, mail or in person. Please refer to the above section, entitled How to pre-pay the Land Transfer Tax and the NRST to the MOF. After December 29, 2017, Teraview will accept payment of NRST at the time of registration. For paper registrations on which NRST is payable, payment of NRST and LTT must continue to be made at the Ministry of Finance.

I am purchasing property subject to the municipal land transfer tax. Can I pay all of the required land transfer tax at the Ministry of Finance in Oshawa?

The Ministry of Finance in Oshawa does not collect municipal land transfer tax on behalf of the City of Toronto. Both the general provincial LTT and the NRST can be paid to the Ministry of Finance in Oshawa by courier, mail or in person. For further payment details please refer to the above section entitled How to pre-pay the Land Transfer Tax and the NRST to the MOF.

Can the vendor's lawyer sign for completeness without getting a NRST receipt number?

Currently this is not feasible through the Teraview platform.

Toronto Neighborhoods Where Home Prices Have Doubled in the Past 5 Years

The Toronto housing market has seen a world of change in recent years – factors such as a strong economy, heavy migration, low rental vacancy, as well as investment in real estate as an asset, have had a too-hot-to-handle impact on average home prices in the city. According to data from the Toronto Real Estate Board, the average home buyer would need to shell out $256,055 more for a home in July 2019 compared to 2014, an increase of 46% and a price tag of $806,755.

And, while provincial and federal policies introduced to cool the market have had a pulldown effect on sales and price growth between late 2017 – mid 2018, new analysis from Zoocasa finds that, over a five-year time period, dramatic price increases have persisted in pockets across the city.

The study, which crunched the difference in average home prices for condos and houses in 35 MLS districts in Toronto, reveals prices have more than doubled in a number of neighbourhoods, especially in the condo market and areas with prices lower than the city average.

Here’s a count of how prices have increased across the City of Toronto during the five-year time frame:



Condo Price Increases Concentrated in East and Northwest
Toronto condos have long led the market in terms of price growth, with a greater proportion of local markets experiencing dramatic upswings during the five-year period.

While the overall average condo price increased 66% to $627,927 between 2015 – 2019, eight of the assessed neighbourhoods have seen appreciation of 100% or greater; 30 of 35 have experienced at least a 50% increase, while all have seen prices tick up by a minimum of 25%.

Neighbourhoods with condos priced below the city average saw the sharpest increase over the time frame; of the neighbourhoods that doubled, seven of eight remain priced below the $500,000-mark in 2019, and were well below the $250,000-mark in 2014. However, these neighbourhoods also have an overall lower inventory with sales that are significantly lower than in more central neighbourhoods, which can contribute to heating prices.

Rather, units located within the city’s downtown core or close to transit hubs saw the greatest volume of sales, such as City Place, Cabbagetown, and Mimico, despite being at a higher price point between $520,000 – $711,000.

While this speaks to location being a priority for condo buyers, it also outlines how affordability has been reduced for many would-be house purchasers, who could have purchased a single-family home in 2014 with the same budget, and have since seen affordability reduced by the federal mortgage stress test.


Neighbourhoods Where Condo Prices Doubled

  • E10 – West Hill, Centennial Scarborough: +147%
  • July 2019 Average condo price: $340,750
  • Sales: 4 New Listings: 9
  • E08 – Scarborough Village, Guildwood: +140%
  • July 2019 Average condo price: $424,344
  • Sales: 16 New Listings: 27
  • E11 – Malvern, Rouge: +128%
  • July 2019 Average condo price: $377,295
  • Sales: 20 New Listings: 29
  • W09 – Willowridge – Martingrove – Richview: +127%
  • July 2019 Average condo price: $418,168
  • Sales: 11 New Listings: 20
  • E06 – Birchcliff: +121%
  • July 2019 Average condo price: $661,700
  • Sales: 5 New Listings: 16
  • W04 – Yorkdale, Glen Park, Weston: +120%
  • July 2019 Average condo price: $466,390
  • Sales: 26 New Listings: 37
  • W05 – Black Creek, York University Heights: +115%
  • July 2019 Average condo price: $389,516
  • Sales: 25 New Listings: 40
  • W10 – Rexdale-Kipling, West Humber-Claireville: +101%
  • July 2019 Average condo price: $389,196
  • Sales: 28 New Listings: 62

Houses See More Moderate Price Increase
Price growth was less pronounced for houses for sale in Toronto, though still robust; the average price of detached and semi-detached houses rose 42% over the five-year period to $1,167,968, with the bulk of neighbourhoods experiencing a 25 – 49% uptick in prices (15 neighbourhoods) and between 50 – 74% (13 neighbourhoods). Four saw an increase between 18 – 24%, while just three saw increases above the 75% mark.

Of those three, two MLS districts saw prices double – C03, which includes Forest Hill and Oakwood, and C08, which encompasses Regent Park, St. James Town, and Corktown. However, there are differing factors at play in each. Conditions are relatively brisk in C03, with 30 sales and 44 listings during the month of July, setting the stage for a robust sellers’ market at a premium price point of $2,031,545.

In contrast, detached and semi-detached houses for sale are in very scarce supply in C08, with just four sales and five listings over the course of the month. That effectively puts upward pressure on prices, which are at an average of $1,789,032, despite it being a very small market for single-family housing.

However, house buyers continue to be most drawn to lower-priced neigbourhoods as affordability remains a key factor; the greatest concentration of sales activity happened in MLS districts where average home prices have remained below the $1-million mark including East York – Danforth Village, Morningside, and Black Creek – York University Heights.

Neighbourhoods Where House Prices Doubled

  • C03 – Forest Hill, Oakwood: +121%
  • July 2019 Average condo price: $2,031,545
  • Sales: 30 New Listings: 44
  • C08 – Regent Park, St. James Town, Corktown: +101%
  • July 2019 Average condo price: $1,785,032
  • Sales: 4 New Listings: 5

Source : TREB & Zoocasa


In a city full of condos, you may be surprised to know that there are only a handful of Toronto condos that allow short-term rentals. Albeit, there are many condo owners and renters that choose to ignore the short-term rental policy their condo building may have in place, but that’s a conversation for another day.

Short-term rental platforms like Airbnb and Vrbo have grown in popularity over the last decade and popular cities like Toronto are trying to go with the flow and put some regulations in place for the city as a whole. The proposed short-term rental regulations set for Toronto are as follows:

  • A short-term rental is considered anything fewer than 28 days.
  • Eligible short-term rental properties must be the host’s principal residence.
  • Hosts can rent up to three rooms or their entire home.
  • Secondary suites, such as in-law or basement units, are eligible for short-term rental as long as they are the host’s principal residence.
  • Hosts can only rent their property for a maximum of 180 days of the year.
  • Hosts would have to pay an annual $50 fee and register with the city.
  •  Hosts will have to pay a 4% Municipal Accommodation Tax (MAT) on rentals fewer than 28 days.
  • Short-term agencies, like Airbnb, pay a one-time licence fee of $5,000 and $1 per night that’s booked

It’s also worth noting that Toronto City Council had approved the regulations for short-term rentals at the end of 2017 and beginning of 2018. It has since been appealed to the Local Planning Appeal Tribunal (LPAT) with a scheduled hearing on August 26, 2019. Until then the regulations for short-term rentals are not being enforced.

The biggest concentration of short-term rentals Toronto has are all within the same area: The Entertainment District. These condos allow for short-term rentals because this is a high-traffic tourist area with countless attractions in and around this part of the city.

Below is the list of condos that allow short-term rentals.


Located at 560 Front Street West, Reve Condos has just over 300 condos and stands 15-storeys. Overlooking the rail corridor on the south and Victoria Memorial Square Park on the north, it is a hop skip and a jump to all things entertainment.

Amenities include a gym, sauna, yoga room, party room, theatre and rooftop terrace. Reve Condos is pro-short-term rentals and to accommodate those who do, the Property Management has a short-term rental registration form that must be submitted to the management office with each rental that takes place.


Latest listings for Reve Condos






Located at 219 Fort York Blvd, Aquarius at Waterpark City has 490 condos and stands 38-storeys tall. This condo is nestled between the luscious green of Fort York National Historic Site and Coronation Park along the waterfront. Renters will love the amenities that include a pool, sauna, and rooftop terrace to name a few.

Latest listings for Aquarius at Waterpark City


Located at 209 and 215 Fort York Blvd you’ll find Neptune I and Neptune II condos. Featuring 861 condo units between them and each comes with a balcony. Neighbour to Aquarius at Waterpark City, these condos also enjoy views of Fort York National Historic Site. Inside, amenities include a pool, sauna, rooftop terrace, party room and media room.

Neptune Condos is one of the first condos in Canada to be part of Airbnb’s Friendly Building’s Program. As part of the program, hosts renting out their entire unit must pay $50 per month to the building for general upkeep but not those renting out just a room in their unit. Both security and the condo board have access to current rental activity, so they know who is hosting, who and how many guests are staying, and how much money is being being earned — 5% of which is given to the condo board from Airbnb.

Latest listings for Neptune I | Neptune II at Waterpark City



Soaring 67-storeys tall in the heart of the Entertainment District are the ICE Towers. With over 1300 condos in a perfect tourist-driven destination, and knowing the correlation of tourism and rentals, the condo board here does allow short-term rentals. Uniquely, though, condo owners who rent their condos out for fewer than three months at a time are required by the condo board to get a commercial insurance policy of $5MM.

Latest listings for Ice Condos



The Local at Fort York is a 15-storey condo with 7-storey podium located at 50 Bruyeres Mews. Featuring 249 condos that seemlessly blend modern finishes with the historic appeal of Fort York. Amenities at Local include rooftop terrace with BBQs, sauna and party room.

Latest listings for Local at Fort York




Standing at 41-storeys tall at 75 Queens Wharf Blvd, Quartz Condos has an array of amenities to keep you entertained. 

From billiards to basketball, a fitness centre and pool. A short walk to the waterfront and the Entertainment District.

Latest listings for Quartz Condos





Neighbour to Quartz Condos is Spectra at 85 Queens Wharf Boulevard. Standing at 39-storeys with views of the lake, the CN Tower and tons of green space. Spectra and Quartz Condos share amenities that are referred to as the Prism Club and have more than your traditional condo with pool and hot tubs, basketball courts, yoga studios, and stunning rooftop terrace to name a few.

Latest listings for Spectra Condos



Rising above the Scotiabank Arena are Maple Leaf Condos at 55 and 65 Bremner Boulevard. For those who want to be in on the action, this place is for you. Get to the Scotiabank Arena for a Raptors or Leafs game without even going outside. The Rogers Centre is also just a stone’s throw away. The only downfall is short-term rental guests don’t have access to the building amenities. It’s also important that guests sign in at the front desk.

Latest listings for Maple Leaf Condos



Located in the heart of the Downtown Core at 199 Richmond Street West is Studio on Richmond Condos. This 31-storey condo has some condos that are over 3,200 square feet. Located around the corner from the shops and restaurants of Queen West and the entertainment of the Entertainment District, there’s no better location for those seeking short-term rentals.


Latest listings at Studio on Richmond Condos


Qwest Condos at 168 Simcoe Street is just down the street from Studio on Richmond. While they have been known to allow condo owners to rent their condos on short-term rental platforms they’re less clear on their rules. Word of advice would be to confirm with management ahead of renting out your condo on Airbnb or otherwise.

Latest listings at Qwest Condos



Waterclub Condos at 8 York Street is in the true heart of tourism. Walk out to the Toronto Harbourfront beyond your door or up the street to the Scotiabank Arena. Amenities here include a billiards room, party room, rooftop with BBQs, and an indoor/outdoor pool. Perfect for peak tourist season. The views from this 37-storey condo are breathtaking: lake views, CN Tower and city views! You’ll have no trouble renting a condo here.

Latest listings for Waterclub Condos




The Verve Condos is the only one on the list that’s not in the downtown core. Located at 120 Homewood Avenue adjacent to charming Corktown, shops on Bloor, and even Yonge-Dundas Square. The view from the Verve’s rooftop pool are breathtaking — 40-storeys up with cabanas and a hot tub too.

Latest listings for The Verve


Located at the corner of Spadina Avenue and Bremner Boulevard is Harbour View Estates II. This 49-storey condo is on the corner of the Entertainment District. A popular choice for short-term rentals with its proximity to all things Toronto: the Rogers Centre, Scotiabank Arena, the Rec Room, CN Tower, and Ripleys Aquarium to name a few. Easily get around on transit or by foot.

Latest listings at Harbour View Estates II




The Parade Condos are iconic with iconic Skybridge that connect the 39 and 43 storey towers. Located at 15 and 21 Iceboat Terrace, these tall towers are easily identifiable along Toronto’s skyline. The Party Zone is equipped with free WIFI, they have a games room, theatre, squash courts, gym, pool and even mani-pedi rooms. It’s the perfect “hotel alternative” and condos for sale at Parade I & II are more affordable than some other Toronto condos.


If you’re interested in buying a condo that permits short-term rentals, be sure to keep your eye on the ruling of Toronto short-term rental regulations this summer. Be kind to your neighbours and do your research. While short-term rentals in these building in the Entertainment District will surely be easy to rent, Toronto’s rental market in general is also very competitive and rents are at an all time high.

Latest listings for Parade



INDX Condos
Located in The Core neighbourhood, this Toronto condo was completed in 2015 by Lifetime Developments. You will find INDX near the intersection of Richmond St West & Bay St West in Toronto’s Downtown area. Spread out over 53 stories, suites at INDX will range in size from 365 to 1035 sqft. This Toronto condo will have 784 condo units and is set to be located at 70 Temperance Street. This condo will offer it’s residents amenities such as a Gym / Exercise Room, Common Rooftop Deck, Concierge and Party Room. Other amenities include a Media Room / Cinema and Games / Recreation Room.

latest listings for INDX Condos

Toronto Rent per SQF for condos by Postal Code 2018-19

Toronto Rent per SQF for condos by Postal Code 2018-19

There is a ongoing debate among the real estate industry regarding the impact of planning on demographics, house prices and rents in different parts of cities. New development and new residents are pushed into growth areas, while many low-rise Toronto neighbourhoods have hardly changed over the last 50 years (with the exception of a newly-built “monster” home here and there).

The result of years planning decisions has resulted in very small units downtown and along the waterfront in rental apartment and condominium apartment buildings, and larger single-family and townhouse units in areas where apartments are essentially banned.

The chart below looks at Rentals listings over the past four months for single-family (single-detached and semi-detached homes), townhouses, and condominium apartments. Among these three product types, condo apartments accounted for nearly 70% of the market share. We assigned single-family houses the value of 5, townhouses the value of 4 and condominium apartments the value of 3 to assess the dominant built form for rental listings by postal code in Toronto.


Condo apartments are most prevalent along the Yonge Street spine and along the west waterfront. The light green areas show a mix of single-family and condominium apartment listings in south Etobicoke and upper North York, but a lot of yellow areas in the east Toronto, and Scarborough, as well as north Etobicoke, areas that either have limited new condo development activity, or more end-user condo projects without hold-and-rent investor-landlords.

Another way to see how development patterns and planning have influenced the rental market is to look at the average number of bedrooms in listings by postal code for all housing types: basement apartments, rental apartments, condo apartments, townhouses and single-family homes (see chart below).



A similar pattern emerges, with the average bedroom count from 1.0 to 1.9 along Toronto’s spine and west waterfront due to investor-focused small-unit condo apartment development, while two bedroom and larger units are more prevalent in older rental apartments and single-family homes in all of east Toronto and Scarborough, as well as northwest Etobicoke.

Besides planning, the reason that many of these areas have not seen new condo development is current values in the area are too low, and the areas are not well served by transit to attract younger buyers that can afford these higher new condo prices. Secondly, the rental market is not high enough to justify an investor purchasing in those areas.

The chart below shows the median asking rent per-square-foot for condominium apartments in Toronto over the past four months by postal code.


Most of the high-rent condo areas are located right downtown: access to transit, access to jobs, access to entertainment, walkability, and dynamic and evolving neighbourhoods are the key draws for tenants. Areas pushing above $3.00 psf will see more condo development, and perhaps more rental apartment development as well. Bullpen expects more rental growth along the Eglinton west and Eglinton east with the Crosstown LRT going in. Secondly, look for values to climb in the downsview area with the new subway extension and improvements to the area surrounding Yorkdale and Downsview Park itself.

The chart below looks at average rental rates by postal code in Toronto for rental apartments only. This map shows that there is a lot of room for rental growth in Scarborough, and in the pocket from Steeles to Dundas (north-south) to Dufferin to Jane (east-west).


Source : Bullpen Consulting 


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Condominium Buyer’s Guide

Chapter 1 — Condominium Basics

Condominium living can be an appealing housing option. It’s often affordable and someone else handles much of the maintenance and repairs, such as shovelling snow and replacing the roof. Many condominiums have enhanced security features over those found in single-family houses and offer a wide range of social, entertainment and recreational activities.

However, purchasers should be aware — before they buy — of the many issues and considerations surrounding the purchase of, and the lifestyle in, a condominium. Condominium ownership is very different from owning a home under traditional fee simple tenure. This section of the Guide will help you better understand this unique form of ownership and prepare you for successful condominium living.

What is a Condominium?

A “condominium” refers to a form of legal ownership, as opposed to a style of construction. Condominiums are most often thought of as units in high-rise residential buildings, but they can instead be:

  • low-rise residential buildings (fewer than four storeys);
  • townhouse or rowhouse complexes;
  • stacked townhouses;
  • duplexes (one unit over another) or a side-by-side;
  • triplexes (stack of three units);
  • single-detached houses; or
  • vacant land upon which owners may build.

    There are even mixed-use condominiums that are partly residential and partly commercial buildings. Condominiums come in various sizes with diverse features and can be found in almost every price range.

Condominium buyers have three choices. They can buy a new condo, a resale condo or a conversion condo.

“New condominiums” refer to units that have not been previously occupied. They can be in the planning stage, under construction or recently completed and are usually purchased from a developer. For many buyers, they’re an attractive option because of their fresh appearance and modern fittings, surfaces and appliances. They also often give purchasers the chance to customize their units.

“Resale condominiums” are units that have already been occupied, typically in older buildings, and are for sale by the current owner. One of the advantages of purchasing an existing condominium is that you get to see the unit, building and grounds before you make your purchase. You also have the opportunity to meet other unit owners, speak with a representative of the board of directors of the condominium corporation and ask questions of the property manager.

“Conversion condominiums” refer to units in a building that was previously used for something else but has been, or is to be, renovated for residential use. For example, many loft-style condominiums are converted from former commercial or industrial buildings. Conversions can also refer to the switching of units from rental units to condominium units.

A Unique Form of Ownership

Owning a condominium differs from owning a conventional home in several ways. Key differences include:

What do you Own?

When you purchase a condominium, you own a private dwelling called a “unit.” Your unit is registered in your name. You also share ownership of the common elements and assets of the building and community.

It’s important to be clear where your unit’s boundaries are located before you purchase. You’ll want to know, for instance, whether you’ll be paying for window washing or repairs to your townhouse’s bricks or whether the condominium corporation will be responsible for this. You can find information about your unit’s boundaries in your condominium’s governing documents.

Some condominium units (called freehold condominiums) include ownership of the land your home is on. If this is the case, your unit may be the entire house including the exterior walls, the roof and the lawn. You may want to carefully review the condominium corporation’s site plan, prepared by a professional surveyor, so you know exactly where your unit’s boundaries lie.

Common elements may include lobbies, hallways, elevators, recreational facilities, walkways, gardens and other amenities. They may also include structural elements and mechanical and electrical services.

Some common elements may be outside the unit boundaries, but are for the sole use of the owner of a particular unit. Balconies, parking spaces, storage lockers, driveways and lawns are common examples.

What will you Pay?

In addition to paying for your unit and a proportionate share of the common property, you also pay monthly condominium fees, along with all of the other unit owners. This covers the upkeep and replacement of common elements — whether you use them or not. The fees may also cover the corporation’s insurance policies, utilities and services such as snow removal.

Part of those monthly fees may be put into a reserve fund to cover the estimated cost of future maintenance and repairs.

Required by law in some provinces and territories, a reserve fund study is often used to tell condo owners how much money should be paid into the reserve fund. Conducted by an engineer or other professional, it involves a detailed examination of all components, an analysis of when repair and replacement are expected, and an estimate of these costs.

Condominium fees may have to be adjusted from time to time to reflect the changing costs of goods and services and the state of the building’s reserve fund. Look for these adjustments in the next year’s budget.

Don’t expect a refund if the board overestimates the common expenses. Refunds are not commonly given to unit owners. Instead, surpluses are typically either applied to future common expenses or paid into the reserve fund.

If a unit owner sells a unit before the end of the condominium corporation’s fiscal year, the owner cannot obtain a refund for any prepaid common expenses but should provide for adjustments for prepaid expenses in the purchase or sale agreement.

Did you know?
Even though condominium owners often pay the same municipal taxes as other homeowners, they don’t always receive services covered by those taxes, such as garbage pickup, road repairs and snow removal. This is because condominiums may be considered (by the municipality) to be private communities, some with limited access. Before you buy, ask what municipal services the condominium corporation receives and what other services are carried out by independent contractors — and reflected in your condo fees.

What can you do?
Three of the most common causes of annoyance to condominium owners are pets, people and parking — the “three Ps.” That’s why condos have rules and restrictions around them and other issues, such as noise and the number of people who may live in a unit. It’s essential that you review the condo’s rules, bylaws and declaration before you make an offer.

Buyer beware!
Before buying, find out what common property elements are for your use only and what restrictions apply. For instance, restrictions may prevent you from parking a boat, RV or commercial vehicle in your parking spot or there may be restrictions on what you may place on your balcony.

Your Role in a Condominium Community

When you become a condominium owner, you become a member of a condominium corporation and have certain rights and responsibilities. One of your key rights is the right to vote at general meetings on matters that affect the condominium. You are also eligible to help elect the board of directors.

The board of directors takes responsibility for the management of the corporation’s business affairs. The board is generally made up of individual condominium owners.

As an owner, it’s your responsibility to participate in the governing of the condominium. You can do this by attending general meetings and information sessions, serving on the board of directors or on a committee and voting. It’s also important to read the minutes of meetings and other information sent to members, such as the condo newsletter, as well as the corporation’s budget and financial statements.

You are now part of a community with shared responsibilities. If the parking garage in your development unexpectedly starts to crumble and there aren’t enough funds on hand to repair it, you — along with all of the other owners — must pay the increased condominium fees or a lump-sum payment to cover its repair.

Did you know?
Condominium corporations are legal entities. You and all of the other owners can be sued for matters for which you’re collectively liable. Likewise, you and all of the other owners have the right to sue for damages to the common property.
Condominiums Across Canada

Condominiums across the country have many similarities and are generally run along the same principles. For example, condos in all provinces and territories are corporations whose units are privately owned and whose common elements, such as elevators and hallways, are owned by all of the condo members.

But there are a number of differences. In British Columbia, for instance, the legal term for condominium corporation is “strata corporation;” in Quebec, it is “syndicate” or “syndicate of co-owners.” In some jurisdictions, a purchaser can ask the condominium corporation for vital information about a particular unit and the corporation as a whole, such as whether the current owner (in the case of a resale unit) has defaulted in paying his or her common expenses and if there are any outstanding lawsuits against the corporation; depending on the jurisdiction, this is called either a “status certificate” or an “estoppel certificate.”

It’s not only condominium terminology that varies from place to place. Some jurisdictions have detailed rules addressing condominium reserve funds, which cover the costs of major repairs and replacement of the common property over time; in other jurisdictions, reserve funds are not mandatory.



Chapter 2 — Condominium Governance

Chapter 2 — Condominium Governance

Condominiums are communities and some run more smoothly than others. Before buying a unit, ensure you understand how condominium corporations make decisions about finances, common property, rules and regulations.

This section outlines the role of the board of directors, your voting rights and responsibilities, common rules and restrictions as well as the differences between “self-managed” condominiums and those that hire property management firms to handle their daily operations.

Who Makes up the Board of Directors?

The board of directors (or “council” in B.C.) is generally elected by, and made up of, individual condominium owners. Their number, qualifications, election, term in office, pay (if any), removal from the board and other related matters are outlined in provincial or territorial legislation and/or the condominium bylaws.

The board of directors meets regularly to handle the business affairs of the condominium corporation, including policy and finances, and makes decisions about the upkeep and repair of the common property.

How are Voting Rights Determined?

The board of directors makes many decisions for the condominium but certain decisions must be made by unit owners. Each unit owner has voting rights at meetings.

Your voting rights will be determined by:

  • the condominium legislation in your province or territory; and/or
  • your condominium’s governing documents (such as its declaration and/or bylaws); and
  • your financial standing with the condominium corporation. If you’re in arrears with your contributions, you risk losing your voting rights.

Some condominiums assign one vote per unit. Others weight the vote based on ownership of the common elements. This ownership interest is often called a “unit factor,” “proportionate share” or “percentage of ownership.”

The unit factor for any particular unit will generally be calculated in proportion to the unit’s value in relation to the total value of all of the units in the condominium corporation. For example, a tenth-floor, three-bedroom corner suite with a rooftop garden will typically have a greater unit factor than a two-bedroom basement unit.

Your unit factor is also used in calculating the monthly fees you must pay toward the upkeep and renewal of the common elements.

Must I Attend Meetings and/or Serve on Committees?

You may have to, depending on what your condominium’s rules or other governing documents require. Whether it’s compulsory or not, you have a responsibility to yourself and to other owners to become involved in your condominium community.

Meetings are a forum for owners to discuss the running of the condominium and to vote on changes to the common property, bylaws and other matters. For a vote to take place, there must often be a minimum percentage of owners present (called a “quorum”), so everyone has a responsibility to attend.

Did you know?
If you can’t attend an owners’ meeting, you may have the right to send someone in your place. This person is called a “proxy.” When owners will be voting on important matters, such as changing a bylaw or electing a new director to the board, you can send your vote via a proxy. Typically you would need to appoint your proxy in a signed document.
Am I Bound by Decisions if I didn’t Attend Meetings or Vote?

Yes. Your board of directors holds regular meetings and has the right to make certain decisions that affect the corporation at those meetings, whether or not you are present.

Decisions that require the approval of unit owners are made at annual general meetings or special meetings. You should be notified about these meetings well in advance and plan to attend or appoint a proxy. If you don’t cast your vote and a motion passes, you are bound by that decision.

What’s the Difference Between Condominium Bylaws and Rules?

A condominium’s bylaws govern how the condominium corporation is run. They often address matters such as the election and practices of the board of directors, the collection of common expense contributions and how rules are passed.

Rules focus on day-to-day concerns of condominium living and vary from condo to condo. They may be very strict or very relaxed depending on the nature of the corporation, but they help ensure that the condominium is a safe, pleasant and attractive place to live. Rules also spell out what your rights and obligations are as an individual owner.

Rules frequently cover:

the maximum number of occupants per unit;
when you may use certain amenities, such as the pool or exercise room; and
the appearance and/or alteration of the unit space.
Carefully review and consider all rules and obligations prior to purchasing a unit. You can get a copy of the rules from the seller, the property manager or the board of directors. Make sure your copy is up to date.

Provincial and territorial condominium legislation sets out what matters can be covered by bylaws, and sometimes rules. All bylaws must be consistent with both this legislation and the condominium corporation’s declaration. Rules should not deal with matters covered by bylaws otherwise they could be struck down if challenged.

Condominium legislation in some jurisdictions doesn’t differentiate between bylaws and rules.

Before you buy, ask current residents if they’ve experienced problems with noise, pets, parking, smoke or odours from other units and how they were handled. This is particularly important if you’re moving from a single-family home to a multi-unit condominium.
Property Management Firms Versus Self-Managed Condominiums

Most condominium corporations hire a property management company to handle their day-to-day operations, under the leadership of their boards of directors. These tasks often include:

collection of monthly fees and any special fees;
cleaning and maintenance of common areas;
payment of common area utility bills;
operation and maintenance of heating, air-conditioning and other building systems; and
snow and garbage removal.
Other condominiums are “self-managed.” Their boards of directors — and in some cases, volunteers who are residents or owners — carry out the day-to-day operational tasks.

Self-management can save money as well as give owners a greater sense of control and community. But it has several challenges including:

finding volunteers who have knowledge of building maintenance, budgeting, insurance and legal issues and who can devote enough time to the condominium’s day-to-day business;
lack of continuity (due to volunteer turnover); and
a weak system of checks and balances.
When considering the purchase of a particular condominium, ensure that you are comfortable with its management, whether the condo contracts out this responsibility or takes it upon itself. There may be implications for both your condo fees and any obligations you may have toward the building’s operation and maintenance.

Self-managed condominiums can work well, but it’s important to have strong support from a lawyer and an accountant who are experienced in condominium operations.

Chapter 3 — The Pros and Cons of Condominium Ownership

Chapter 3 — The Pros and Cons of Condominium Ownership

Wondering whether or not condominium living really is the right choice for you? You may love the idea of ditching your snow shovel and lawn mower when you move into a condo, but you might not be so happy about leaving your satellite dish behind to comply with a bylaw.

Like most types of accommodation, condominiums have their advantages and disadvantages. Carefully consider all of these pros and cons when deciding whether or not a condo fits with your lifestyle, personality and financial situation.

Pros of Condominium Ownership

  • Fewer maintenance and repair responsibilities.
  • Access to on-site amenities, such as a sauna or swimming pool, which you otherwise might not be able to afford.
  • Enhanced security features in some condominium units. You’ll also have peace of mind while you’re on vacation knowing that your neighbours are close by.
  • Monthly maintenance or condo fees are usually predictable.
  • You have a say in the running of the condominium corporation. As an owner, you have voting rights and can be elected to the board of directors.
  • A community that may have a wide range of social, entertainment and recreational activities sometimes geared to a specific lifestyle (seniors, for example).

Cons of Condominium Ownership

  • You may not be able to decide when maintenance and repairs get done
  • You may have to pay for amenities that you might never or rarely use
  • Less privacy in some condominium units and possibly more noise
  • Possibility of special assessment charges for unexpected repairs
  • Like most communities, a condominium attracts individuals with a variety of personalities. It can sometimes be a challenge to reach a consensus
  • Less space in some condominium units
  • Possible restrictions on things like noise levels, parking, pets, smoking and even the style and colour of things like doors and window coverings.
  • Evaluation Checklist: Is Condominium Ownership Right for me?

If you answer “yes” to most of the following, then buying a condo may be a smart move for you.

For all Condominium Dwellings

I like the fact that a condominium is an “instant community” and my neighbours won’t be far away.
I want to participate in the running of the community with other condominium owners.
I don’t want the hassle of shovelling snow, cutting grass and other outdoor chores.
I’ll use some of the condominium’s amenities.
I understand that I will pay monthly fees for maintenance and repair of the condominium and will budget accordingly.
I know there may be restrictions on the number of occupants in my unit, pets, noise, parking, etc.
I’ll read through the condominium’s documents before I buy so there’ll be no surprises.
I understand that a board of directors can make decisions on my behalf.
Also, for Condominium Apartment Units

I’m an empty nester or single and would be satisfied with the space provided in a condominium apartment.
I’m reassured by the building’s security measures, such as entry buzzers and video surveillance cameras.

Chapter 4 — Buying a Condominium

Looking at potential homes to buy can be an exciting experience. First, you need to figure out what you can afford and how much of a mortgage you’ll need. Then, once you find a condominium that matches your financial and personal criteria, you’ll want to ensure that it’s well managed and in good physical, financial and legal condition.

There are significant distinctions between buying a new condominium and a previously owned, or resale, unit. This section highlights what you need to look for, whichever route you choose. It will also tell you how buying a condominium differs from purchasing a “fee simple” home and help you determine what you can afford and which experts to consult.

Buying a New Condominium

Developers often put new condominiums up for sale before their construction has been completed or even begun. You may be selecting your unit from a floor plan. This has advantages — you may be able to ask for changes — and risks — the as-built result may differ from the plan or what you had envisioned and the completion date could be later than promised.

When considering a new condominium, you should have a close look at your unit’s specifications and the building’s plan and other governing documents to ensure that your unit is acceptable and that you’re fully aware of regulations and the corporation’s budget.

You’ll want to find out from the developer what work must still be done on the project and check that your purchase agreement specifies a completion date and under what conditions the developer may change it. The developer should also be able to give you details about the property manager who will hold the key responsibility for the day-to-day running of the condominium.

For more information on what to look for when buying a new unit, see Tips for buying a new condominium.

Buyer beware!
When you buy a new condominium, be prepared to pay occupancy fees — sometimes called “phantom rent” — to the developer. Occupancy fees cover the period between the time you take occupancy of your unit and the time you take ownership of it (once the unit is registered).

Buying a Resale Condominium

When you purchase a resale unit you have the advantage of seeing what you’re buying. It’s clear how much space you’ll have, what the layout is like and where the common elements are. But you’ll also want to find out about less obvious aspects, such as what steps have been taken to limit noise between units and how odours are controlled.

On the financial and legal side, you should review the corporation’s annual operating budget, financial statements and estoppel or status certificate. The estoppel or status certificate is a package of legal documents that may include the declaration, bylaws, rules and information about the corporation’s insurance, reserve fund, property management contract and any outstanding judgments. You may have to pay a fee to cover the corporation's costs of providing these documents, but it will be well worth it — so much so that you should make any offer to purchase conditional on a satisfactory review of these documents.

For more information on what to look for when buying a resale unit, see Tips for buying a resale condominium.

The Pros and Cons of New Versus Resale

When deciding whether to purchase a new or resale condominium, you’ll want to consider the advantages and disadvantages of both.

Some Pros of Buying a New Condominium:

  • A lower purchase price (depending upon market conditions).
  • A greater choice of locations within the building (if applicable).
  • A broader range of options and/or upgrades.
  • Less risk of having to undergo costly, noisy and intrusive repairs and renovations.
  • New home warranty protection.

Some Cons of Buying a New Condominium:

  • If construction has not been completed, you cannot “see” what you are buying and must rely on artist sketches and floor plans (which may change). Be sure to have the unit’s boundaries, location, finishes, materials, chattels, etc. clearly specified in the purchase agreement.
  • Your initial deposit will be tied up for the duration of construction.
  • Financial institutions may not give you a mortgage on an unregistered condominium.
  • Construction of your unit may not be completed by the expected date.
  • You may move into your unit while construction continues in others, which can be noisy and disruptive.

Some Pros of Buying a Resale Condominium:

  • You get what you see.
  • There are no lengthy waiting periods before you can move in unless provided for in the condition of sale.
  • Deposits are often much lower for resale purchases and typically there is no GST/HST. In some exceptional situations the GST or federal portion of the HST applies.
  • You can check out the condominium “community” in advance to see if the corporation is well run and the people who live in it are compatible with your needs and lifestyle.
  • Older condominiums sometimes have larger units.

Some Cons of Buying a Resale Condominium:

  • Fewer options with regard to choice of unit (within the building), decorating or upgrades.
  • Older resale condominiums may require more maintenance and repair than new ones.
  • The amenities that you may find desirable (for example, a workout room, whirlpool, security features) may not be available.
  • Older resale units may not be as energy-efficient as newer units.
  • Major repairs may be coming due that will require extra charges to the unit owners if the reserve fund is underfunded.
  • You will receive only the portion of the new home warranty that has not yet expired.

Affordability — How Much will it Cost?

It’s important to know how much money you should set aside to purchase — and live in — the condominium you are considering. Additionally, when you are shopping around and comparing different condominiums, it’s important to compare the purchase prices and monthly fees for each unit.

Ensure  you can afford your mortgage and your new monthly expenses. Your bank, mortgage  broker or financial advisor can help you tailor your mortgage to suit your  financial goals and needs. CMHC’s online guide Homebuying Step by Step can also help you to determine what you can afford.

There are many different types of mortgages, including conventional, high ratio and second mortgages. Take the time to discuss your current financial position and future goals with your financial advisor and be sure that you are comfortable with your purchase.

Know What you Can Afford

If you are presently renting and are looking at purchasing for the first time, here are some important points to consider when assessing what is affordable for you. Canada Mortgage and Housing Corporation can help you to determine what you can afford with an online calculator available free of charge at CMHC’s online guide Homebuying Step by Step – Step 2: Are you financially ready?

Down Payment

The more of the purchase price you can afford to pay initially, the less interest you will pay over the course of your mortgage.


Consider the type of mortgage, rate of interest and term. Consult with your financial advisor or bank loans officer to decide what works for you, and what would be your financial position if mortgage rates were to rise. Be sure to factor in the costs of mortgage loan insurance if applicable (required if the down payment is less than 20 per cent of the unit’s purchase price). Life insurance may also be desirable but ensure that the costs are also factored into your monthly budget. The more frequent your payments, such as every two weeks instead of monthly, and the shorter the amortization period, the less interest you pay over the course of your mortgage.


As a condominium owner, you will pay a monthly fee that is your share of the operation and maintenance of the common property elements. A portion of this fee will typically be set aside for the corporation’s reserve fund, which covers the costs of major repairs and replacement of the common property elements over time. You will need to know exactly what is and isn’t included in the fees for any condominium you consider, and how much you can expect to pay.

Property Tax

When you rent a place to live, the property tax is usually a part of your rent. When you own a condominium, you are responsible for paying your own property taxes. For a new condominium, the municipality in which your condominium is located should be able to tell you how much you can expect to pay. For existing condominiums, this information can be provided by the real estate agent or the vendor. Ask for a copy of the most recent property assessment and tax bill.


These may or may not be included in your monthly condominium fee. You will want to know what you can expect to pay for utilities such as natural gas, water and electricity.

Did you know?
Any costs over and above the basic unit purchase price should be clearly outlined in the agreement of purchase and sale. You should budget for these charges when you are considering buying.

See Condominium purchase and recurring costs to help you with your budgeting.

Special Considerations

You’ll want to be crystal clear about the following when making an offer on a condo unit:


A condominium’s declaration sets forth fundamental information about how the condominium is organized and operated, such as the proportion in which owners are to contribute to the common expenses, and it may have restrictions on pets, home-based businesses, what can go on a balcony and many other issues. (Some provinces don’t use the term “declaration;” instead this “constituting” document is included as part of the condominium “plan.”)

A declaration can be difficult to change so you’ll want to read it over very carefully to ensure that it does not contain unacceptable terms or restrictions.

Unit Boundary

Find out exactly where your unit ends and the common property begins. Is the door to your home part of your unit, for example, or is it part of the common elements? You should have a good look at the condominium’s plan so you know precisely what you’ll be responsible for maintaining. For more information on unit boundaries, see Where are my unit’s boundaries.

Unit Factor

Your unit factor (sometimes called “proportionate share” or “percentage of ownership”) tells you what percentage of the condominium’s common property you own. It’s a key piece of information because it determines how much you will pay in monthly maintenance fees and sometimes your voting rights.

You’ll find your unit factor listed in the condominium’s declaration (or other governing documents, depending on where you live). Don’t expect it to be equal to your neighbour’s, but it should at least be similar to those of other units that are comparable in size and location.

Your unit factor is usually based on the size and location of your unit. Before you buy, verify what your unit factor will be with your lawyer. For more information on unit factors, see How are my voting rights determined?

Reserve Fund

A portion of your condo fees will likely go toward the building’s reserve fund. (Your province or territory may have another name for this, such as contingency fund or capital replacement reserve fund.) A reserve fund ensures that the condominium has enough money to pay for the major repair and replacement of the common elements over the life of the building. These may include the roof, roads, sewers, sidewalks, elevators, plumbing and other building systems. For more information on reserve funds, see Is there enough money in the reserve fund?

Home Warranty

New condominiums are often protected by third-party new home warranty programs. Warranty programs ensure that the condo is properly constructed and meets building specifications. If you’re buying a new condominium, find out what is and is not covered by the warranty. If you’re purchasing a resale condominium, find out what warranty coverage remains on the unit, if any. For more information on home warranties, see How do new home warranties work?

Did you know?
New home warranties may protect the deposit you place on your new condominium, up to a maximum amount, in case the developer cannot, or will not, complete your unit through no fault of your own. Check with your provincial or territorial government to find out more about warranty programs as coverage varies across the country. See also the Homebuying Step by Step guide


There are special considerations when insuring a condo as opposed to other forms of housing tenure. You’ll want to check that your individual unit and the condominium corporation as a whole are sufficiently insured. For more information on insurance, see What property or general insurance coverage should I look for? in Frequently asked questions.

Check that your unit factor (also called “proportionate share”) has been assessed accurately so that you’re not overpaying monthly maintenance fees. Unit factors are rarely assessed incorrectly but an error can be difficult to rectify because it means changing the corporation’s declaration (or other governing documents).

Did you know?
A developer may own units (model suites, for example) that have a disproportionately low unit factor. This is uncommon but it can happen because it is the developer who decides which unit factors are assigned to units when the condominium is registered.

The last thing you want is to move into your new home only to discover that the reserve fund is underfunded and major repairs are required. This could mean a big jump in your monthly condo fees or a lump-sum payment.

Whom Should I Consult About Buying a Condominium?

There are a number of professionals you should turn to when buying a condominium. Real estate agents, lawyers, developers and property managers — who ideally specialize in condominiums — all play an important role.

Here is an overview of how each professional can help. See Questions to ask advisors and condominium experts for a list of things to ask before finalizing your purchase decision.

Real estate agents: Buyers typically contact real estate agents when purchasing resale condominiums. If you’re buying a new condominium, you’ll usually deal with the developer directly though it can be a smart move to work with an experienced agent who may be able to help you secure upgrades and better terms from the developer. A skilled agent can help save you time and energy and provide advice about what to include in the purchase offer to protect your interests.

Property managers: Unless a condominium is self-managed, it’s the property manager who handles the day-to-day running of the condominium, such as the hiring of staff, maintenance and repairs. The property manager is under contract to the condominium corporation and plays a pivotal role in ensuring the building operates safely and effectively.

Condominium’s board of directors: Before you make a decision to buy in a particular building, it’s worth taking the time to speak with the owners who sit on the board of directors if you have the opportunity. They have a “bird’s-eye view” of the corporation and may be able to alert you to potential problems.

Lawyers and notaries: A real estate lawyer (or notary in Quebec) who is knowledgeable about residential condominiums will protect your legal interests. He or she should help you understand the condominium documents and will review your offer to purchase and the purchase and sale agreement. A lawyer will also be able to tell you whether or not there are legal actions against the condominium corporation.

Home inspectors: A qualified home inspector can evaluate the condition of the interior of your unit as well as the exterior elements of typical low-rise housing types, such as single-family homes, duplexes, triplexes, row houses and small apartment buildings. For larger apartment buildings, you may want to hire more specialized professionals, such as an architect or engineer, who regularly conduct condition assessments of larger buildings

Did you know?
If you’re purchasing a condominium in some jurisdictions, you can make the agreement-to-purchase offer conditional upon the satisfactory review of the condominium documents and financial statements by a provincial condominium document review specialist.

Buyer beware!
Use all of the investigative tools at your command to help you avoid serious problems. These tools can include property disclosure statements, professional property inspections, condominium corporation minutes and engineering reports.

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Does HST Apply To A Seller Of A Condo Assignment (Flip)?


Inevitably, an offer to purchase an assignment property (often on an OREA form 140 or 141) by a buyer's sales representative will state that, if applicable, HST is included in the purchase price (as we typically see in any offer to buy resale residential properties).  The sales representative who represents a seller of an assignment (and who is advising the seller) MUST be aware that according to the Canada Revenue Agency, there are sometimes situations where HST will, in fact, be applicable and payable by the assignor/seller who is assigning a contract to buy a newly constructed unit/residence.

When applicable, HST will be payable by the Assignor (buyer #1 from the builder) on the portion of the assignment sale price related to the return of deposits (paid to the builder by the assignor/seller) PLUS the gross profit (the difference between the builder price and the assignment price).

The confusing question is whether or not HST is, in fact, applicable to the assignment and, since realtors should not undertake the responsibility to advise a seller on such a matter, MAKE SURE (as a listing sales rep advising a seller/assignor) THAT AN ASSIGNMENT SALE WHICH STATES HST IS INCLUDED IN THE PRICE IS CONDITIONAL ON ASSIGNOR'S/SELLER'S LAWYER'S APPROVAL so that the lawyer for the assignor/seller will be responsible to advise a seller whether or not HST is applicable to the assignment/sale.  The idea is to shift the burden of responsibility from the shoulders of the listing sales representative to the shoulders of the lawyer for the assignor/seller.

Believe it or not, whether or not HST is applicable to an assignment depends on the original intention/the plan (in the mind of the assignor/seller) when the offer to purchase was made with the builder.  If the PRIMARY PURPOSE by the assignor/seller in buying from the builder was to profit by assigning/flipping the deal, THEN HST IS APPLICABLE to the assignment/sale.

On the other hand, if an individual originally signed an offer to purchase a condo apartment (to be newly constructed by a builder) with the primary intention that the unit bought would be used (for example) by:

  • (1) a son or daughter when attending University/College, OR
  • (2) a parent who wanted or needed a place to reside, or
  • (3) a spouse who planned to separate from the family, or
  • (4) the buyer(s) who intended to downsize, or
  • (5) the buyer(s) who intended to use the apartment when working downtown or when visiting Toronto
  • (6) a son or daughter who was engaged to be married, or
  • (7) buyer wanted to move closer to a workplace OR to relocate a place of work

THEN the Canada Revenue Agency would typically conclude that HST is not applicable on the assignment/sale if (at a later date) a reasonable change in circumstance resulted in an assignment/sale of the unit if, for example,

  • (1) such son/daughter chose not to go to University/College, or
  • (2) the buyer's mom or dad no longer could use or wanted to use such apartment as a residence (due to their death or needs a retirement home), or
  • (3) intention to separate from family changed, or
  • (4) decision was made later not to downsize, or
  • (5) the buyer(s) reasonably changed his/their minds about such intended use, or
  • (6) the engaged son or daughter decided not to marry or decided to live elsewhere, or
  • (7) the workplace location changed or the intended relocation of workplace changed

The question is whether the facts or circumstances would indicate to the Canada Revenue Agency that the condo was originally being acquired from the builder for the primary purpose of personal use versus buying the unit for only a potential profit with the intention of assigning or flipping the deal.  If a buyer purchases two or more new condo units or has a corporation purchase a residential unit, it is more difficult (perhaps impossible) to try to explain to the Canada Revenue Agency that the primary purpose in buying from the builder was to acquire the unit for personal use as a residence for an immediate family member.

The bottom line is that a listing realtor, seeing an offer from an assignee, should encourage the assignor/seller to sign back the offer with a condition for approval of the terms of the sale by the lawyer for the assignor/seller.

Harmonized Sales Tax (HST)

What is HST?
·It is the merging of the current Provincial Sales Tax (PST) with the Federal Goods and Service Tax (GST) into one new tax.
Who does it affect?
·The new HST affects Ontario and British Columbia.
·Nova Scotia, New Brunswick and Newfoundland have already implemented a Harmonized Tax while Saskatchewan, Manitoba, Quebec and Prince Edward Island all collect a separate Provincial Sales Taxes (PST) or QST for Quebec.
How much is it?
 British ColumbiaOntario
Provincial Sales Tax (PST)7%8%
Federal Goods and Service Tax (GST)5%5%
New Harmonized Sales Tax (HST)12%13%

When will the HST be implemented?
·July 1, 2010.
How does it affect the sale of my current owner occupied principal residence (re-sale)?
·The sale of housing that has been previously occupied by an individual as a place of residence and that was exempt from GST would also be exempt from HST.
When does the HST apply to the sale of a new construction home or new rental property?
·Builders’ sales of newly constructed or substantially renovated homes would be subject to HST when both ownership and possession of the home are transferred after June 30, 2010.
·The provincial portion of HST would not apply to builders’ sales of newly constructed or substantially renovated homes that are taxable under the GST where, under a written agreement of purchase and sale, ownership or possession of the home is transferred before July 1, 2010.
·The HST would not apply if either the ownership or possession of the complex is transferred, under a written agreement of purchase and sale, to the purchaser before July 1, 2010 or if the sale was entered into on or before June 18, 2009 in Ontario and November 18, 2009 in British Columbia, regardless of the ownership or possession date.
Is there a Housing Rebate?
·Yes, new housing rebates would apply when HST is charged and the purchaser would have qualified for a GST rebate.
·Please visit and for more information on the rebate.
Are other closing costs subject to HST?
·Yes, other costs associated with the purchase of your new house, including legal fees, home inspection fees, appraisal fees and real estate agent commission fees will be subject to HST.

Order Status Certificate
Below we have detailed ordering status certificates from our firm. To see the full benefits of ordering online with CONDUIT click here.
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Once we have received and processed your order, you will be notified by email that the status certificates may be downloaded as a PDF
Please check your spam or junk email, the confirmations are often filtered. You may wish to add the domain to your safe list. The status certificates are often completed and delivered electronically in two business days, however some of the more complicated certificates may take longer. You should always receive your status certificate within 10 days as per the Condominium Act, 1998.
Save the PDF to your computer, email to agent, lawyer and owner
You may either download or print the status certificate, depending on your requirements. We encourage you to utilize the electronic copies and only print if you absolutely need to. Please check with the solicitors and mortgagees requiring the status certificate to see if they will accept an electronic copy. Note that, including the attachments, the number of pages can exceed 100.

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