Wednesday, June 11, 2008

Land Transfer Tax – First Time Home Buyer Rebate extends to Resale Homes

On December 13, 2007 the Government of Ontario announced proposed amendments to the Land Transfer Tax Act to extend the Land Transfer Tax Refund Program for First-Time Homebuyers, thus far available only to purchasers of new homes, to purchasers of resale homes.

This important change to the Land Transfer Tax regime in Ontario became law on May 14th 2008, without much publicity, when Bill 44 received the Royal Assent.

The new rebate is applicable to transactions for which the agreements of purchase and sale was entered into after December 13, 2007.

For transactions closing after May 14th 2008, the rebate will be automatically applied upon completion of appropriate statements in the Electronic Land Registration system.

For transactions that closed prior to May 14th 2008, but the agreement of purchase and sale was entered into after December 13th 2007, the purchasers will have to apply to the Ministry of Revenue for a refund.

For eligibility and procedure for claiming a refund, read here.



- Shashi K. Raina, Toronto

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