Transitional GST Rebate for Assignments???

[tweep0]

Hey

Here's the situation:

Purchaser buys from builder in 2007 for occupancy in Dec 2008. I buy the ASSIGNMENT from purchaser in Mar 2008. Does that mean that I am entitled to a transitional GST rebate for the 6% to 5% drop? I guess the real question is whether my date of purchase is 2007 or 2008?


Thanks for your help!

 

[carturo15]

You did not sign a new agreement with the builder, you are assuming an agreement previously signed back in 2007, so your real date of purchase will be 2007, you are entitled to the GST transitional rebate and also you do not have to pay the new Toronto transfer land tax

 

[tweep0]

Great news! Thanks for the info!

 

[dpylyp]

Please consult a real estate lawyer re; GST Transition.

LTT issues aside, Tarion Home warranty is Payable a second time by the owner occupant even if they did not occupy.

What happens if the Builder extends the closing dates? Is your contract a firm date? Typical Occupancy Date is 4 - 6 months before Registration Date.

I ask this because while showing condos last week, units available for rent in a yet not yet registered building. Plywood in the elevators, paper on the floor to protect the finish, bare concrete floors in hallways, no wall paint (drywall stage) and no final paving and dozens of workers on the site.

I had never b4 seen a unit released for occupancy so early based on the finish. Is that common to all new condo purchases?

 

[avatarreb]

Ditto on the lawyer. Check the nature of the contract, some contracts have even stated that any rebates of GST will be kept by the developer.

 

[tweep0]

Ditto on the lawyer. Check the nature of the contract, some contracts have even stated that any rebates of GST will be kept by the developer.

Thanks! When I asked my lawyer initially, he asked me to call the GST people to find out (damn lazy lawyers). Anyway, it seems like I will be able to obtain the transitional GST rebate because I am not signing a new Agreement of Purchase and Sale (i'm simply taking over the original).

Most developers keep the New Home GST rebate (36% refund), but they can't (accoding to the GST people) take your transitional rebate. I have heard of developers trying to reserve rights to the transitional rebate in the agreement of purchase and sale. Mine didn't, but even if they did, i think it's a long shot.