Purchase price of a re-sale property in Ontario includes HST, but, a purchase of a residential property from a builder may have additional HST implications. If you are purchasing a new residential property from a builder and you or your immediate family member intend to occupy it as your primary residence, you may qualify for an HST rebate. Typically, the New Home Rebate is assigned to the builder by the purchaser of the new home. Subsequently, the builder credits the purchaser with the amount of the rebate, if available, on closing. Thus eliminating additional HST at closing.
The detailed procedure for the buyer to obtain this benefit is set out in most new home agreements. It must be explained to the buyer at closing because the buyer will be required to deliver the following documents to the vendor at closing:
For FREE CONSULTATION contact MB Law today at +1-416-5139418. Your real estate lawyer serving North York, Ontario.
The New Home HST Rebate in Ontario application must be filed within two years of a new home closing date or the completion of the renovation. NRRP rebates and new home HST rebates are typically received from the Canada Revenue Agency (CRA) within two months. The CRA may delay or deny the application if the requested documents are not submitted with your application, the application form is not properly completed, or the rebate calculation is incorrect. With over 9 years of experience, our team can assist you in understanding whether you are eligible for a refund. If you have already completed the purchase, we can still assist you in filling out the necessary forms.
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