GST Rebate

[carturo15]

When you buy a new condo from the builder and you move in to the new property you are eligible to apply for GST rebate, which is 36% of the GST amount. Normally this rebate is already included in the purchase price, but you have to fill out the application at the time of closing. My question is, if you want to sell the property, is there any minimun period of time required to live in the unit, I mean do you have to live in the unit for some months before you can sell the property? if so, do you know how long?. I have checked Canada Revenue website but they do not say anything about it.

 

[nekz]

Well, you'd have to wait for the condo to transfer the title from the builder to you, otherwise it'd be considered an assignment of your agreement. This typically requires builder permission (and an assignment fee of a few thousand dollars).


On a related note, I've always wondered this:
What happens if you are not entitled to the GST rebate (because you are not a first time home buyer), but purchase a condo that has the GST rebate built in to the price? Do you either: owe the commission upon closing, or the builder swallows the 36% GST rebate?

 

[carturo15]

The GST rebate is not only for first time buyers, it's for everybody as long as you occupy the property as primary residence. Probably you are confused with the land transfer tax, that exception is only for first time buyers

 

[dpylyp]

Gst

The Purchase price of the unit includes GST. The Purchaser agrees to indemnify the Builder....... and sign appropriate claim forms to .....

These lawyers don't miss much They specialize.

If you flip you cannot sign off on the I'm the occupant declaration.

 

[nekz]

The GST rebate is not only for first time buyers, it's for everybody as long as you occupy the property as primary residence. Probably you are confused with the land transfer tax, that exception is only for first time buyers

http://www.torontorealestateboard.com/consumer_info/gov_programs/gst.htm

"New home buyers can apply for a 36% rebate of the 6% GST applicable to the purchase price to a maximum of $7,560 for homes costing $350,000 or less before GST."

ARGH. The "buyers" in "New home buyers" is a verb, not a noun!!!

Thanks carturo15! I quite possibly can be the worst agent ever