Tag Archive for province of ontario

HST Education for Homebuyers in Ontario

PropertyWire.ca

There are many factors for homebuyers to consider when purchasing a house these days-particularly in the province of Ontario, where the HST has become a factor over the last several months.

The Ontario Real Estate Association, in partnership with Ontario Revenue Minister Sophia Aggelonitis, have released a video to clarify the rules for those looking to purchase a home and to eliminate confusion around HST as it applies to resale and new home purchases.

The video aims to educate Ontarians that there is no HST on resale homes, maintaining similar taxation rules to those under the old provincial tax. In addition, HST is only applied to the portion of new home purchases above $400,000. For first time homebuyers, a refund of Land Transfer Tax of up to $2,000 is available on resale homes.

Analysts feel that there has been less material impact for consumers than anticipated; there is also a common belief  that consumers are  not fully aware of how the HST is applied to specific purchases—in particular with home buying.

Also, it is important for homebuyers to know about the Ontario Enhanced New Housing Rebate, which “means that buyers of new homes receive a rebate of up to $24,000 regardless of the price of the new home. Buyers of new homes priced up to $400,000 (about three-quarters of new homes built in Ontario) on average pay no more – and possibly even less – tax than under the previous PST, where sales tax was hidden in the price.”

Speaking exclusively with Propertywire.ca, Steven Fudge, Sales Rep, Bosley R.E. Ltd., Brokerage sees varying levels of impact and awareness of  the HST in his Toronto market and says, if anything, taxation of all kinds is forefront on Toronto homebuyers’ minds; “Most of my buyers appear aware that HST is not applicable on resale housing, though I have seen a marked increase in buyers double-checking what all the closing costs are. With the double-whammy of both a provincial and city land transfer tax, buyers are weary of taxation”

“(Also) my downtown homebuyers are typically aware that HST is not applicable on resale housing. They’re more frustrated that the new mayor, Rob Ford, isn’t eliminating the City’s land transfer tax, which was part of his election platform.

Watch the video www.ontario.ca/taxchange or www.youtube.com/oreagr

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Contact the Jeffrey Team for more information  -  416-388-1960

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Check that your title is absolute when buying property

Mark Weisleder – Toronto Star

If you own land in Ontario, more than 97% of the land is now registered in the Land Titles system and it will probably be 100% within the next 12 months. There are two categories of properties that are registered: Land Titles Absolute (LTA) and Land Titles Conversion Qualified (LTCQ).

Most land in southern Ontario settled after 1795 was originally in the registry system. Land in Northern Ontario, which was settled after 1885, was immediately placed into the Land Titles system. Over time, about 35% of the land in the registry system was converted into the Land Titles system using the Land Titles Absolute method.

This involves submitting a full 40-year search of title to the province for approval and preparing a new survey for the property, which is then sent to every adjoining land owner. If there are no objections, then the land is registered into Land Titles and the owner is granted the full protection. This means that no adjoining owner can later bring a claim for ownership by possession or easement by prescription, even if they prove 10 years of continuous possession of the land or 20 years of use of any easement.

In 1999, the province of Ontario, under the Polaris initiative, began the administrative conversion of the remaining 65% of the land into the Land Titles system. The main difference between this method and Land Titles Absolute is that while 40-year searches were conducted on each piece of land, no up-to-date surveys were prepared. As such, the title to these lands are “qualified,” such that if there were any matured claims for adverse possession or easements by prescription which were in existence at the time that the land was transferred into Land Titles, these claims would continue to apply today.

As an example, if a parcel was placed under the LTCQ category in 2005, but a neighbour had fenced off part of the land in 1992, then the neighbour would probably be entitled to that piece of land, if he could prove open and continuous possession from 1992 until 2005. But if in the same example, the land was fenced off in 1998, the neighbour would be unsuccessful because the claim had not yet matured in 2005, as only seven years had elapsed. The same principle would apply for any 20 year easement claim based on prescription.

If a person today owns land that is designated LTCQ and wants to build a subdivision or condominium development on the lands, they will still have to convert these lands to Land Titles Absolute by having a new survey prepared, sent to the adjoining owners and waiting for the prescribed time limits for opposition to expire.

Even if you can prove that you have fenced in your neighbour’s land for more than 10 years, it may still be difficult to claim the land by possession.

For example, if you are fencing in land and the owner has no knowledge about it, or is merely holding the land in question for future development, then the case law has decided that the claimant will not be successful in these kinds of claims for possessory title.

You can look at your deed, the title register, or the letter from your lawyer when you bought the property to check whether your title is absolute or qualified. If you are in a subdivision registered after 1971, then your title is absolute.

This continues to demonstrate the need to always verify whether there is an up-to-date survey, more formally called a Surveyor’s Real Property Report, when buying any property. You will have certainty that all fence lines are in fact on the true boundary lines as shown in your deed.

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Contact the Jeffrey Team for more information  -  416-388-1960

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