FIRST TIME BUYERS LAND TRANSFER TAX REBATE

This is the information from the Ontario Government Website:  It sounds to me like you can apply for the refund, but it wont be paid until the amendment to the land transfer tax refund becomes law. The lawyer on the deal I just had, said that the first time buyers would have to fill out the affadavit to process their refund.  It sounds like it is just a matter of time.

Resale Homes

Until the proposed amendments become law, the following applies to first-time homebuyers of resale homes applying for a refund:

• Land transfer tax must be paid at registration
• The following documentation must be submitted to the Ministry of Revenue at the address at the end of this notice:
  1. A properly completed form - Ontario Land Transfer Tax Refund Affidavit for First-Time Purchasers of Eligible Homes (Resale)
  2. A copy of the registered instrument on which land transfer tax was paid (in the case of electronic registration, please include a copy of the docket summary which relates to the transaction);
  3. A copy of the agreement of purchase and sale (only those agreements of purchase and sale entered into after December 13, 2007 may qualify) along with a copy of the statement of adjustments.
• Refund applications on resale homes cannot currently be made electronically.

Refund to be Paid once Proposals become Law

Although eligible first-time buyers of resale homes may apply for the refund once the transaction has closed and the tax has been paid, the ministry would retain the refund requests for processing and would issue refunds if the proposed amendments become law.

We just received this information that will clarify things for us. This is a Memorandum from Jim Flood, Ontario Real Estate Association Government Relations

SUBJECT:   Clarification - Expansion of the Land Transfer Tax Rebate to First Time Homebuyers of Resale Housing

Over the past few weeks, I have received a number of emails from individuals and boards asking "has a bill been introduced?","has it received royal assent?" or "when is the rebate effective/". 

I took these questions to be about a parliamentary procedure and, (correctly) indicated that the program became effective the day it was introduced and that the legislative formalities of passing the amendment in the law would come in due course.

Yesterday, an (admittedly small) light bulb went off and I realized that you may have been asking a completely different question.  If the question is, "When does a qualified purchaser get a cheque from the provincial government for the LTT rebate?," the answer is indeed some time after an amendment is passed by the legislature and receives royal assent. 

With the government not sitting, there is no Order Paper and therefore no estimate I can give you as to when the amendment will be introduced or when it will receive royal assent. Rest assured that, once that happens, I will let you know.

I hope this clears up any confusion.

Jim Flood.