newbuyer
Active Member
if that is the case, then sorry about it.
|
|
|
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Buying preconstruction - Assignment
- Thread starter carturo15
- Start date
rbt
Senior Member
I think the person is saying you're saving 30k because builder's price has gone up and the seller is selling at cost+interest. However I think that will be offset by HST the buyer has to pay depending on the price of the unit.
Sam didn't mention the date the agreement was signed with the developer. There may not be HST involved (do we know the official grandfathering rules yet?).
AKS
Senior Member
Agreements signed before June 18, 2009 will avoid the HST. However assignments signed after June 18, 2009 and building is built after July 1, 2010 is subject to HST. So basically, if you wanted to buy an assignment, you should have signed it before June 18. Otherwise you have to pay HST. Unless the building is finished by July next year.
rbt
Senior Member
Agreements signed before June 18, 2009 will avoid the HST. However assignments signed after June 18, 2009 and building is built after July 1, 2010 is subject to HST. So basically, if you wanted to buy an assignment, you should have signed it before June 18. Otherwise you have to pay HST. Unless the building is finished by July next year.
Guess I would have to ask a lawyer this question as I think you might be confusing the agreement to purchase a unit with the assignment contract. One buys the unit (subject to HST), the other buys the contract.
Surely trading contracts isn't subject to HST; otherwise it would be the end of the stock market as we know it.
Last edited:
AKS
Senior Member
Well, how would you translate this?
http://www.kpmg.ca/en/services/tax/tnf/tnfc0920.html
Grandfathering rules
Under the proposed grandfathering rules, sales of new homes under written agreements of purchase and sale entered into on or before June 18, 2009 (i.e., grandfathered homes) will not be subject to the provincial portion of the HST where both ownership and possession of the homes are transferred after June 2010.
http://www.kpmg.ca/en/services/tax/tnf/tnfc0920.html
cdr108
Senior Member
Agreements signed before June 18, 2009 will avoid the HST. However assignments signed after June 18, 2009 and building is built after July 1, 2010 is subject to HST. So basically, if you wanted to buy an assignment, you should have signed it before June 18. Otherwise you have to pay HST. Unless the building is finished by July next year.
interesting ... i will have to confirm that.
does the building 'finished' by July 2010 mean registration, or does occupancy qualify as 'finished' ... ie. one's occupancy date is June 2010 but the condo doesn't register months later.
AKS
Senior Member
interesting ... i will have to confirm that.
does the building 'finished' by July 2010 mean registration, or does occupancy qualify as 'finished' ... ie. one's occupancy date is June 2010 but the condo doesn't register months later.
Well, maybe my interpretation is incorrect. But I thought I read somewhere about assignments. I can't find it again currently. There's so many rules to the HST.
sam13
New Member
yes..i am just asking for my cost(deposit) back..with the interest(carrying cost) on the deposit..i am not asking for the $30,000...