True Value of a Real Estate Agent

The process of selling in Canada is effectively controlled by Multiple Listing Service. Over 80% of sales transactions take place though this medium.

Under MLS, the members of the service, share the information among each other to expedite the process of selling. The access to private data is not open to the public.
The process of selling a property through the services of MLS can be divided in 5 different stages.

Processing a MLS Listing:

This includes things like, collecting the pertinent information about the property, such as measurements, legal description, zoning, liens if any, Title, Insurance, property taxes and converting this to the format that the board accepts and then processing it through the MLS system. The important information about the property is then made available to the consumers by CREA’s on its website however, it does not carry the names of the owner, his contact information or any thing that would help the consumer to contact the seller directly. He must contact the broker representing the seller to get more information and to see the property.

Marketing the property:

This includes all those steps the broker takes to expose the property to the prospective buyers to bring in the sale. This includes, but is not limited to, activities like, advertising, in papers, sign on the property, holding open houses, face to face meetings with prospective buyers, sending flyers, advertising on the net, canvassing, etc. etc.

Servicing the Listing:

Encompasses answering questions and queries of consumers, brokers, lawyers, mortgage broker, building inspectors, appraisers, providing answering desk, making appointment and keeping a log of the activities to facilitate the sale and seeing it through the closing.

Representation and Negotiations:

This is the most important phase for the sale of the property. This is where the knowledge, expertise and experience of the agent shines and can have a huge impact on the final outcome. It includes representing the Seller in negotiations with the buyer / buyer’s agent. The goal here is to promote and protect the interests’ of the seller and maximize his returns from the sale of the property.

Consultation:

During any of the stages stated here above, there may be situation where the seller needs the advice concerning any issue effecting the sale of the property.

For More Information Contact Your Local Real Estate Specialist.

HST Transition Rules

The provincial government has provided rules/guidance on how it will transition to the implementation of the proposed Harmonized Sales Tax.

• The HST is NOT YET IN EFFECT. The HST will come into effect beginning on July 1, 2010; however, note transition rules below.
• HST will not apply on the purchase price of re-sale homes.
• HST would apply to services such as moving cost, legal fees, home inspection fees, and REALTOR® commissions.
• HST will apply to the purchase price of newly constructed homes. However, the Province is proposing a rebate so that new homes across all price ranges would receive a 75 per cent rebate of the provincial portion of the single sales tax on the first $400,000. For new homes under $400,000, this would mean, on average, no additional tax amount compared to the current system. 

Transitional Rules for New Housing

• Generally, sales of new homes under written agreements of purchase and sale entered into on or before June 18, 2009 would not be subject to the provincial portion of the single sales tax, even if both ownership and possession are transferred on or after July 1, 2010.
• The tax would also not apply to sales of new homes under written agreements of purchase and sale entered into after June 18, 2009 where ownership or possession is transferred before July 1, 2010.

Additional Transitional Rules

• Where services straddle the HST implementation date of July 1, 2010, the tax charged for the service may have to be split between the pre-July 2010 and post-June 2010 periods. However, the HST will generally not apply to a service if all or substantially all (90% or more) of the service is performed before July 2010.
• Four key timelines are important (see below). All are based on the earlier of the time the consideration is either due (In general, an amount is due on the date of the invoice or the day required to be paid pursuant to a written agreement), or is paid without having become due. If consideration is due or paid,

• Before October 15, 2009, HST will generally not apply (however, see above transition rules for new housing).
• From October 15, 2009 to April 30, 2010, certain business that are not entitled to recover all of their GST/HST paid as input tax credit may be required to self-assess the provincial component of the HST with respect to goods or services supplied after June 30, 2010.
• From May 1, 2010 to June 30, 2010, HST will generally apply for services supplied after June 30, 2010.
• After June 30, 2010, HST will generally apply. An exception to this rule would be where ownership of the property is transferred before July 2010 or the invoice relates to services provided before July 2010. 

• With regard to the lease or license of goods, including non-residential real property, HST will generally apply to lease intervals or payment periods on or after July 1, 2010 and the general rules noted above will apply. However, where a lease interval begins before July 2010 and ends before July 31, 2010, it is not subject to HST.
• With regard to the sale of non-residential property, HST is due where both possession and ownership of non-residential property occurs on or after July 1, 2010.

More Detail

Additional detail on the transition rules is available at the provincial government web site here or by calling the provincial government enquiry line at 1-800-337-7222.

Your kind of town, Toronto is

In several studies conducted throughout the past two years Toronto has consistently earned a ranking as an Alpha city, an important hub in the global economic system.

Loughborough University in the United Kingdom undertook one of the first studies developed to rank global cities in 1998. In its updated 2008 study, Toronto ranked 15th in the world. The only North American city to achieve a higher ranking was New York City, in 1st place.

A similar study was also undertaken in 2008 by the consulting firm A. T. Kearney and the Chicago Council on Global Affairs. In this study Toronto ranked 10th in the world.

A more recent study published by Tokyo’s Institute for Urban Strategies at The Mori Memorial Foundation ranked Toronto 15th.

In this case, the only North American cities to achieve higher rankings were New York and Los Angeles, in 1st and 13th spots respectively.

In these studies Toronto consistently received top marks with respect to culture and livability. The GTA is home to more than 5.5 million people and is one of the world’s most ethnically diverse, with more than 100 languages spoken throughout the city. We have low crime rates, a clean environment and a high standard of living.

In fact, Toronto consistently earns the highest world ranking of all North American cities in a quality of living study undertaken annually by the global consulting firm The Mercer Group, and many of the characteristics that contribute to this rating are internationally renowned.

We have the tallest tower in the western hemisphere, the world’s seventh largest stock exchange, globally acclaimed universities and an international airport. Toronto is home to the longest street and the longest running fair in the world. We even have one of the largest zoos. We have more performing arts venues than anywhere else and one of the most significant film festivals in the world as well.

On any given day, there’s no shortage of attractions to take in, from quality galleries and museums, to professional sports matches and cultural festivals like Caribana, Taste of the Danforth and the Dragon Boat Race.

The reasons to love our city are countless. If you haven’t yet invested in a GTA property, I encourage you to talk to a Greater Toronto REALTOR®. For more information please visit www.TorontoRealEstateBoard.com

To learn more about the many opportunities that exist in neighborhoods throughout the GTA talk to a Greater Toronto REALTOR® and visit www.TorontoRealEstateBoard.com for neighbourhood profiles, market updates and much more.


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Land Transfer Tax Questions and Answers

Do I qualify for the Land Transfer Tax Refund for First-time Homebuyers if I signed my agreement of purchase and sale for my resale home on December 1, 2007?

No, the Land Transfer Tax Refund Program for First-time Homebuyers of resale homes only applies to agreements of purchase and sale entered into after December 13, 2007.

First-time buyers who enter into an agreement of purchase and sale before December 14, 2007 may still be eligible for a land transfer tax refund, but only if the home is newly constructed.

Applications for a refund must be made within 18 months after the date of the transfer.

For further information refer to Ontario Tax Bulletin LTT 1-2008 Land Transfer Tax Refunds For First-time Homebuyers.

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If a parent is also on title to a child's property at the insistence of the bank, is the child eligible for the refund as long as all of the other conditions are met?

In this situation, it will be necessary to pay land transfer tax at the time of registration and apply for a refund from the ministry.

If the parent did not acquire a beneficial interest in the property as a result of the conveyance:

• the ministry will accept the fact that the parent was on title as a trustee for the child, and
• the child would qualify for the newly constructed home refund, provided that evidence of the trust is submitted (e.g., a letter from the bank confirming that the parent is on title for mortgage purposes).

For further information refer to Ontario Tax Bulletin LTT 1-2005 – Conveyances Involving Trusts.

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How do I apply for the refund of land transfer tax for first-time homebuyers?

Normally, upon registration, your lawyer will complete the appropriate tax statements in the electronic land registration system, and the refund will be deducted automatically from the land transfer tax that would otherwise be payable.

If this did not occur, after registration you can apply for the refund by submitting an application to the ministry consisting of the following documentation:

• completed Land Transfer Tax Refund Affidavit For First-time Purchasers;
• copy of the registered conveyance;
• evidence of the amount of tax paid on registration;
• copy of the Agreement of Purchase and Sale (including all schedules and amendments);
• copy of the Statement of Adjustments; and,
• copy of the Tarion new home warranty certificate (if applicable).

For further information, refer to Ontario Tax Bulletin LTT 1-2008 Land Transfer Tax Refunds For First-time Homebuyers.

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My spouse and I are buying our first home together. I have owned a home before, but sold it before we became spouses. My spouse has never owned a home. Does she qualify for the First-time Homebuyers Refund?

Yes, even though you are not a first-time homebuyer, your spouse may claim a refund up to the maximum, as long as you did not own a home while you were each others "spouse."

Where a husband who is not a first-time purchaser and a wife who is a first-time purchaser, purchase a home together, the wife may claim the land transfer tax refund with respect to her interest. The wife may also claim a refund of land transfer tax with respect to her husband's interest, if he sold his interest in all homes that he previously owned before becoming her spouse.

For land transfer tax purposes, "spouse" means either of two persons who are married to each other, or who are not married to each other and who have cohabited:

• continuously for a period of not less than three years; or
• in a relationship of some permanence, if they are the natural or adoptive parents of a child.
  

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My partner and I are buying a home together. I have owned a home, but he has not. Does he qualify for the First-time Homebuyers Refund?

Your partner's eligibility for a refund depends on whether you are "spouses" as defined in section 29 of the Family Law Act.

For land transfer tax purposes, "spouse" means either of two persons who are married to each other, or who are not married to each other and who have cohabited:

• continuously for a period of not less than three years; or
• in a relationship of some permanence, if they are the natural or adoptive parents of a child.
  If you are not spouses, then your partner may claim a refund based on his/her interest acquired in the home.

If you are "spouses", your partner may claim a refund up to the maximum, as long as you did not own a home while you were each other's "spouse." If you did own the home while you were each other's "spouse", then your partner does not qualify for a refund even if you did not live in the house together.

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What are the requirements to qualify for the refund of land transfer tax for first-time homebuyers?

The requirements are as follows:

• The purchaser cannot have previously owned a home, or had any ownership interest in a home, anywhere in the world, at any time.
• If the purchaser has a spouse, the spouse cannot have owned a home, or had any ownership interest in a home, anywhere in the world, while he or she was the purchaser's spouse. If this is the case, no refund is available to either spouse.
• The purchaser must be at least 18 years of age.
• The application for a refund must be made within 18 months after the date on which the conveyance or disposition occurred. (Note that an application for the refund can be completed upon the electronic registration of the conveyance).
• The purchaser must occupy the home as his or her principal residence no later than nine months after the date of the conveyance or disposition.
• The purchaser cannot have previously received an Ontario Home Ownership Savings Plan (OHOSP) based refund of land transfer tax.
• If the agreement of purchase and sale is entered into before December 14, 2007, the home must be newly constructed.

For further information refer to Ontario Tax Bulletin LTT 1-2008 Land Transfer Tax Refunds For First-time Homebuyers.

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