New life and new home……and no rebate!
After 5 months at our new place. Our place is getting a final closing tomorrow.
And this is what pisses me off………. I get NO New Home Buyer Land Transfer Tax refund.
It’s the fact about my condo.
1. Prebuilt building that I put down the downpayment in 2005. ( I haven’t even met Alex yet)
2. I met Alex in year 2007. He already owns his bachelor condo.
3. This condo is solely under my name only. Alex and I have a pre-nup setup that even if I sell the place he can’t take a dip of the profit on either capital gain or the selling price. The mortgage is setup soley under my name too.
4. He renovated the place and rented out his condo after we moved in together to my new condo this year July (July , 2008)
5. We got married on Aug 8, 2008.
Now my real estate lawyer told me that because Alex owns a place, so I am disqualified for New Home Buyer’s rebate. And there goes TWO land transfer taxes for my condo. It adds up to 7000!!!! ARgh!!
The reason being that only one of us can claim the rebate, not both of us. And obviously I am paying two taxes here because STUPID Toronto municipal land transfer tax takes effective February 1st, 2008!
Alex bought his place in 2006 for half of the my condo value, and he only pays ONE ontario tax. Now I have to pay both taxes!!
if you are currently dating someone right now who owns their own place. You got a bit of planning to do for your first place discount.
1. Either sell the place before you both move in together to the new place, or have you or your future husband to transfer out the property and then transfer it back in.
2. I would suggest you get a place first, and then get married!!!
This just sincerely pisses me off. I hope there was someone telling me those before I got married… 
*******UPDATE*************************************
As pissed as I was yesterday, I found this clause on the city of Toronto’s website. It says
You may be eligible for a rebate of the MLTT (Municipal Land Transfer Tax) if either of the following criteria is met:
- Grand-Fathering
The Agreement of Purchase & Sale was executed on or before December 31, 2007 and the closing date is on or after February 1, 2008. In this case you will be eligible for a full rebate.- First-Time Purchaser
You are a first-time purchaser of a newly constructed or re-sale residential property. The rebate for first-time home purchasers is up to a maximum of $3,725.00.
Oh, I am sure I don’t qualify for option B. However, option A – Grand-Fathering? Sounds like I am a perfect match! I got my purchase of agreement in March, 2005, and the building is closed Dec, 2008.
I called my lawyer to confirm. And yes, I was right! My lawyer had to apologize to me because this clause slip out of her mind. Now at least I don’t have to pay this extra 3K. Money-saving is always a good thing!
17.Dec.08 
life 
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