Recently, we have had several real estate transactions with open municipal building permits on the property. Building permits remain open before the construction or renovation has passed final inspection by the municipal building inspector or if there are deficiencies that need to be completed. Open building permits present a challenge for sellers and buyers in real estate transactions and a real risk to the transaction. If work done on an open permit does not pass inspection or if the building
Category: Real Estate
Vacant Home Tax
Toronto and Ottawa have instituted a municipal Vacant Home Tax at a rate of 1% of assessed value. The Vacant Home Tax will apply starting in respect of the 2022 year. Other municipalities and regions are considering similar provisions including in Hamilton, Durham, Peel and York Region. The tax is levied in respect of properties that are vacant for more than 6 months in a year. Exemptions apply for such things as renovations with building permits, absences for LTC stays,
Real Property; Non-Resident Seller.
We have acted for many clients who are non-resident Canadian taxpayers selling Canadian Capital Property. We have advised clients who are changing their residency status as they sell. And we have completed many transactions involving non-resident sellers. It is very important for clients who are non-resident or anticipating changing their residency status to seek accounting, tax and legal advice before selling a Canadian property. There are potentially serious tax consequences that might be avoided or mitigated with good advice and
The 2023 Real Estate Slow-down.
Not to detract from those suffering real health issues, but the real estate market seems to be ailing from Long-Covid! After a brief slump at the beginning of the Pandemic, the real estate market in the GTA and across Ontario was raging since July 2020 until the end of 2022. The volume of transactions was consistently high, and the prices rose in excess of longer market trends throughout this period. This was due to a longer trend of low borrowing