The buyer pays this amount upon registration of the Transfer/Deed.On transfers of residential real property in Ontario, Land Transfer Tax (LTT) is calculated on the purchase price.
Some of the exceptions are as follows:
In Ontario, the land transfer tax is based on a sliding scale.
The tax is calculated on the value of the consideration for the transfer. In certain cases the Land Transfer Act deems the value of the consideration to be the fair market value of the land.
This reflects the land transfer tax rates for agreements of purchase and sale entered into after January 1, 2017 and is current as of August 15, 2018.
In certain circumstances tax is payable even when there is no actual transfer of the property:transfer of shares, an Agreement of Sale or Assignment thereof.
Only the buyer is required to pay the LTT and not the seller. The purchaser’s lawyer pays such tax on behalf of the purchaser on the closing date. The purchaser will be required to provide their lawyer with certified closing funds that will cover the closing expenses.
At Mackesy Smye our experienced real estate lawyers can help you with all your queries on property purchase or transfers and provide you with the best representation possible in disputes regarding Land Transfer Tax.
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