When you purchase or have interest in a property or land, you will need to pay the Land Transfer Tax to the Ontario Government on the closing of the transaction. The amount to pay is calculated depending on the purchase price of the property.
The payment should be made on registration of the Deed/Transfer. There are those who are exempt from executing this according to the Land Transfer Tax Act, including:
- Transfer to a charity;
- Transfers that involve trusts;
- Transfer to a government organization
In Ontario, the Tax is based on a sliding scale, which depends on the value of the property. Your lawyer, as the buyer, will pay this tax on your behalf on the closing date. You will need to provide the attorney with certified closing funds that are enough to cover the closing expenses.
We have expert Real Estate Lawyers who can respond to any of your queries on Property Transfers and Taxes at Aman Law.