New Home Purchase Includes HST

The Harmonized Sales Tax (HST) and how it affects homebuyers

I just wanted to follow up with you today to provide this link to our new "Buying a home? Get the facts on HST" bilingual real estate fact sheet.

To make it easier for you to provide information on the HST and how it affects homebuyers, we created this document for you to simply print off and hand out to your clients and other interested parties.

Did you know?

About 93 per cent of all homes sold in Ontario are not subject to an additional tax amount under the HST.

It’s important to note, the HST is not charged on resale homes.

In addition it is not charged on:

home insurance
mortgage interest costs

HST is charged on:

real estate commissions
legal fees

For the entire list of what's taxable under the HST and what's not, please visit http://www.rev.gov.on.ca/en/taxchange/pdf/taxable.pdf. This list is also available for download, as a free mobile application.

And of course, you can visit our website for more information on the HST at www.ontario.ca/taxchange (en) or www.ontario.ca/modificationfiscale (fr).


Rachael, Ontario Ministry of Revenue

Contact Stan Gelman at 905 270 5110 or email sgelman.sglaw@rogers.com

http://wiselawyer.ca

Buy a Grow House in Toronto

Bill 139 would require municipal inspections, under the Building Code Act, of properties used for clandestine drug operations (including marijuana grow operations) and any orders issued for remediation, would be required to be registered on the title of the property.

Do you think you should know about this if you are buying a house?

How much discount from market does this stigma deserve?

Famous Quotes that Inspired me

Abraham Lincoln, Notes on the Practice of Law

Discourage litigation. Persuade your neighbors to compromise whenever you can. Point out to them how the nominal winner is often a real loser - in fees, and expenses, and a waste of time. As a peace-maker the lawyer has a superior opportunity of being a good man. There will still be business enough.

Abraham Lincoln (1809 - 1865)

Stan Gelman - In my own law practice I have often reminded myself of this quote from Abraham Lincoln that has brought so many people together in settlement instead of litigation.

Have you been in an Accident? New Insurance Limitations

You have been in a motor vehicle accident. You are entitled to no fault benefits…. no matter who was at fault.

The benefits have been greatly reduced.

The chart here simply explains the new no fault benefits that are available as of any new policy coming into effect as of the 1^st of September 2010.

Insurance Changes Sept 2010

It does not apply to any policies that were in effect prior to September 1^st, 2010.

There are two categories of benefits; they are non Catastrophic and catastrophic. Missing from the Non catastrophic is care giver benefits which were previously available, but care giver benefits are available to catastrophic cases.

If you have been in an accident and need legal advice, ask your question here in the comments section or email Stan Gelman sgelman.sglaw@rogers.com

Our website is Wise Lawyer.ca

Are You Buying a Grow House?

You are considering the purchase of a grow house. The agreement must be conditional on the following; namely that if there are any problems with the grow house will be cleared up prior to closing. Those problems are mold and air samples must be taken and analyzed by a licenced laboratory to ensure that the property is mold free.

Further more you will need clearance from the City Building department that all remedial work has been done prior to closing namely structural, plumbing, heating electrical as well as from the local hydro supplier and gas company that all arrears of these utilities have been paid before hydro service and other utility services are restored.

When you go to sell, You must notify the purchasers that the property was a grow house and what remedies have been taken to correct it.

The Hydro Company has probably taken the hydro meter and at this point in time there is no power or heat. It is not suitable for occupancy.

Banks are very reluctant to lend on a house that has no occupancy permit and my understanding is that you may be able to only finance half of the value of the land.

Air samples need to be taken outside as a base line and at different points in the house to establish how many mold spores are in the air.... measured in parts per million.

These air samples are tested and then those hired to clean up the drywall and surface mold are better prepared to deal with their working environment.

All ductwork and electrical must be removed to allow for cleaning of floor and ceiling joists and structures. All this then needs to be reinpected.

You will need an E S A certification that every receptical, light switch and power connection has been updated to current building code.

All these things take time and patience. Remember there will still be permits to be pulled and possibly even fines and deposits to be made before the occupancy permit is reissued.

If you need guidance with a Dope Grow OP I have done them in the last few years.

Resources Grow House Pamphlet: http://www.torontopolice.on.ca/d42/growhouse.pdf

List of Grow Houses:
http://www.torontopolice.on.ca/d42/20060220-d42_community_bulletin.pdf

You can contact me, Stan Gelman at 905 270 5110 or check out my web site Wise Lawyer Dot CA

Make Sure you Cap the Closing Costs

Many new home and condo Agreements of purchase contain hidden or unspecified charges that change prior to closing.

Charges that I have seen recently include;

Hydro Meters, Land Tax of $75, Hydro Installation $630, Security Deposit $500, New Home Warranty Program $734, Water Meter $390, Electronic Registration $ 175, Law Society Levy $52.50, tree planting or park land dedication that could be thousands.

These are in addition to the normal land transfer taxes that apply in a purchase. The 416 and 905 have separate Land Transfer Taxes. Rebates may be available for First Time Buyers.

Bring your contract in for a review during the conditional upon a solicitors review period and all these details can be explained to you. The Builders Lawyers will be contacted and appropriate revisions made.

Contact my office at 905 270 5110 or email Stanley Gelman sgelman.sglaw@rogers.com Check our website Wise Lawyer.ca or possibly you have a question. Add your question here.

Do you have a Question?

Let's Ask Stan Gelman....

If you have a question about a legal matter, whether it is Insurance Related to the New Ontario Coverage Limitations, Labour Laws and Wrongful Dismissal or a Slip and Fall. Possibly you have questions regarding a developers charges in an Agreement of Purchase and Sale for a house or condominium purchase. Family Law issues are the most emotionally charged as they most often deal with Access and Visitation as well as support.

Are you considering buying a previous grow house and the issues you need to be aware of with ESA and Occupancy Permits?

You can post your questions here in the comments section and they will be answered for you as Blog Posts or can be handled by DM.

I look forward to your inquiries.

Land Transfer Tax Calculator 416 or 905

Toronto and the surrounding area have different land transfer tax rates.

If you are also first time buyers, you have rebates available to you.

The Ontario Land Transfer Tax applies to all purchases in the Province based on the Purchase Price.

In addition Toronto charges their own Land Transfer Tax.

Click here to open the closing costs calculator.

This Calculator was provided by Stan Gelman to assist you in your real estate transaction. Give Stan Gelman a call on your next real estate transaction.

The fees quoted are for a normal residential purchase transaction up to $550,000. Additional Fees May Apply Purchase Mortgage $300 Title Insurance $250 - $350 (Relates to Purchase Price) Disbursements Searches Courier etc +/- $300.00 Rebates may vary; previous ownership and marital status. For additional information, please contact Stan Gelman at (905) 270-5110 or email Stanley Gelman, Q.C. (sgelman.sglaw@rogers.com) Closing costs calculator provided by Stanley Gelman www.wiselawyer.ca