Section 116 Sale by Non Resident

Anyone can purchase real estate in [Toronto] Canada  and we do welcome foreign investment.   When you sell however there is a with holding tax of 25 % of the sale price of the asset [condo] that you sell.

The sale of Canadian Real estate by a NON resident of Canada.
In order to complete the sale of real estate in Canada, a non resident of Canada, you must obtain from the
government of Canada, a Section 116 Release before you can close the house or condo sale transaction.
The Buyers Lawyer will demand this certificate.
If you do not have this certificate at closing, you will have to hold back in cash, 25% of the selling price,
until the Certificate is obtained.
If you have Questions
please Call me

Stanley Gelman
Real Estate Lawyer Mississauga
905 270 5110

We value and welcome you dollars but be informed when you are flipping and selling.

I welcome you contacting me to purchase or sell condo's in Toronto

REFORMS! REFORMS!

You can almost hear Politicians shouting REFORM!

The Ontario Government is tackling Condominium Reforms in an attempt to address what some feel are NEEDED reforms and adding another judicial body for oversight that will hire STAFF, create an appeal process, create Rules and Regulations of their own, in the fashion of a Rental Tribunal. Then, of course, there will be an application and filing fee. 

This CONDO OFFICE is proposed to be funded by a contribution (additional fee for Condo Owners) of $ 1- 3 dollars per unit per month. This quickly amounts a war chest of $20 Million per year.   Have Taxes / Levies ever reduced after introduction? 

Key recommendations include:

• Creation of a Condo Office, an arm’s length umbrella organization that could provide functions such as education and awareness, dispute settlement, condo manager licensing, and a condo registry.
• Improved consumer education and protection
• Updated financial management rules and dispute resolution mechanisms
• Stronger qualification requirements for condo boards, including mandatory training for first-time members
• A new licensing program, managed by the condo office, to ensure that condo managers are properly trained and qualified.
• http://ppforum.ca/publications/ontarios-condominium-act-review-stage-two 

Bob Aaron in a recent News paper article stated;

The full, 72-page report, available online at ppforum.ca, provides a hint of what condominium law will look like if and when the report’s final recommendations are passed into law.
Of the report’s more-than 200 recommendations, the most significant one in my opinion is the creation of a new umbrella organization known as the Condo Office. This new body would have four main functions: education and awareness, dispute settlement, licensing condo managers and maintaining a condo registry.
While creating a Condo Office would no doubt be an excellent solution to a number of industry problems, it seems to me that great care should be taken in establishing yet another quasi-judicial body like the Ontario Municipal Board and the Landlord and Tenant Board, both of which have come in for considerable criticism over the years. 
I have my doubts about a proposed monthly “levy” on all condominium units in the province. Current estimates are $1 to $3 a month from each condo unit — and that’s just in the first year. At the higher end, that translates into an annual budget of $21.6 million, plus user fees. http://www.aaron.ca/columns/2013-11-09.htm

While I appreciate in light of recent fraud and some occasional miss-management, the majority of issues tend to be the education of the Condominium Buyers/Owners and their compliance with Rules and Regulations. Condo Management companies do need to be licensed and regulated.  Yes, Consumers need to be protected, but condo owners also need to GET INVOLVED and participate actively in their buildings management and reputation. Lawyers at closings are not explaining the significance because simply put, their client declined being charged to print the documents received electronically.  Conduit.

The amount of money is small but it always starts that way. If you want to discuss something with your Condo Board; Put your request in writing and they will respond.  Articulate your concern or complaint.  There is already an oversight process and that is the Small Claims Court System that lawyers have successfully used since the 60's (with the creation of Condo Ownership) You can call a Requisition Meeting over any issue with signatures from 15% of the owners.

Ms. Audrey Loeb from Miller Thompson published a comprehensive overview of Condominium Ownership and what it entails. Worthwhile reading for the Investor and every condo purchaser. 
 http://www.millerthomson.com/assets/files/article_attachments3/MT_A-Residents-Guide-Living-and-Buying-a-Condominium_A-Loeb.pdf

Having served on a few Boards, I realise the biggest issues are transparency and communication. What needs to be managed is articulation of why decisions are being made instead of silence. Posting those results in newsletters and Web pages. Clear communication in elevators.

Why take money away from potential owner's repairs to add them to government levy's? Purchasers also have a personal obligation to inform themselves of the Rules of Ownership. What are your obligations?

Condominium Status Certificate

Do you think it should be the real estate sales professional’s responsibility to request a Condo Status Certificate or the solicitor’s. We all know that you must have one if you are closing a deal that involves a condo – but do you think it is better to get it ahead of time or just let the lawyer request it?

Traditionally, the process of requesting a Condo Status Certificate required tracking down the appropriate person at the condo corporation, making your request in writing (usually by fax) and then having to mail payment by certified means before they will even get started on the request. Next you can wait up to 10 days before the Condo Status Certificate is ready and arrange a courier to pick up the massive document.
Seems like a complicated, time consuming way to go about getting something, especially given the fact that it is 2013 and technology makes virtually every other aspect of our life effortless.
GeoWarehouse has made the process of requesting Condo Status Certificates a little bit easier. While many are not fully available for online viewing, they can be requested online through the GeoWarehouse Store.
What does this mean to you? It means that you can simply access the GeoWarehouse Store, request a Condo Status Certificate online, pay by credit card and then either receive it electronically or, if it is not available electronically, arrange to have it picked up. http://www.geowarehouseblog.ca/condo-status-certificate-online-say-it-aint-so/

I love the concept of ordering the Status Certificate online and waiting for the E Mailed link to everything. ByLaws, Financial Statements, Insurance Certificate, Rules and Regulations, Declarations and the updated Status Certificate.  Easy to read, adjust the font and just download the appropriate PDF'd section.  A condo management's contact details are obtained when you negotiate the offer with the owner of the unit. 

Received online.
Lawyers are angry because they need to print it for their clients
Clients are unhappy because the lawyer charged them for printing it.

In my experience the conversation goes something like this;
Lawyer: If I print it...   I need to charge you....  Thats a dollar a page. 
Buyer:  HUMMM   Pause ...  Nahh...   Its ok.  What's in it?
Lawyer: Rules about what you can and can't do,  what you legally own and what the state of the condominium building is in.

You are already angry at what the lawyer charges for a closing; cost is everything.

RESULT?  No one reads the Declarations or By Laws re; pets, commercial vehicles, using your condo as your International business headquarters or hundreds of other details like you're getting the right locker and storage unit and any proposed Maintenance Fee increases or scheduled Capital Repairs in future years

Danger?  None. We are all reliant upon the Title Insurance should something run aground.

Personally?   I request, pay and pick up the Status Certificate, read the By Laws and check the legal descriptions... because, I have been on the Board of Directors of a number of Corporations; and have an accounting back ground I understand the Financial Statements. Your lawyer is the best source to re read the Declarations and By Laws during the Conditional Period in your Agreement of Purchase and Sale. Stan Gelman has spoken of the need to review the entire bundle of documents.

Audrey Loeb of Miller Thompson released a really good whitepaper titled “Condominium Ownership – What You Need to Know” http://www.millerthomson.com/assets/files/article_attachments3/MT_A-Residents-Guide-Living-and-Buying-a-Condominium_A-Loeb.pdf

While it is possible to get Special Assessment Insurance with your Home Owners Policy it is better to subject them to additional scrutiny.

I would like an original signature under seal from the condo corporation that the facts at that particular moment in time are true, rather than a faxed or emailed Status.

Wouldn't you?

Toronto Development Charges Condo and SFD

Proposed Development charges increase in 2014 approved as presented at Toronto City Council October 8th 2013.

Development chargesCouncil approved changes to the development charges the City collects from new construction to pay for a portion of growth-related capital costs. The new development charges bylaw will take effect on November 1. Under the new bylaw, rates will be increased over two years by about 75 per cent for residential development by 25 per cent for non-residential development beginning February 1, 2014. Council also adopted several motions concerning requests for reports and/or potential actions on topics such as affordable housing, development within priority neighbourhoods, and provincial development charges legislation. 

http://markgrimes.ca/toronto-city-council-highlights-meeting-october-8-9-10-11-2013/ 

While the City of Toronto is building 3 times as many condominium units as compared to the Region of Peel; the Development Fees are less than half and actually a third.  http://www.toronto.ca/legdocs/mmis/2013/ex/bgrd/backgroundfile-59642.pdf  The aging / mature population and the influx of people to Toronto continues. To suggest there will be more building of single family homes [in the 416] is uninformed.  Building will be up and ever higher. 

The Development Fees should be equivalent  or at least similar between municipalities as we build more condos for Mature Housing and [individually owned] rental units. If you have purchased a condominium unit that is not yet registered, effective the implementation date, if the builder needs to pay these expenses they will be passed on to you at closing.

This is why Stan Gelman urges you to CAPP THE CLOSING COSTS in the Agreement of Purchase and Sale during the Period of Rescission. [Cooling off Period]

Good Advice...  Are you closing on a condo soon?  

Stan Gelman - Hiring Real Estate Lawyer Mississauga

At what point during your real estate purchase you should consult a lawyer to clearly understand what you are committing to?

The Lawyer handling your real estate purchase carries out the instructions that are agreed upon in the contract.  The time to make changes and corrections is before the document is Firm and Binding.

Your contract should include a condition for Financing for a specific period of time, if you are obtaining Financing. It should also include a Clause for a Home inspection  by a Qualified and Licensed Home Inspector. Additional Visits into the subject property for trades, people to quote for repairs, renovation and measurements require an additional clause.  Be sure to include that the SELLERS will give permission for trades to take pictures and measurements. Visits are meant to show your family what you purchased or re-measure for draperies.

This is a good time to include the Home Owners Insurance Broker and a Search of the Insurance Claim history.  Have there been any previous flood or fire damage claims? Does the house have old wiring or an oil tank?  Call for details.

It's most important today, to make sure that all your closing costs are capped from the builder/ developer to be a specific amount should municipalities change their lot Levy's; while you are dealing with the Period of Rescission. (cooling off period)

Once an Offer to Finance has been received; Commitment Letter, it will often detail the LENDERS requirements.  Review this carefully with your lawyer and Mortgage Broker that you can accommodate all the required terms. 

The contract should clearly state IF there is additional HST applicable above the purchase price. 

Title Insurance is often a mandatory request that is purchased at the time of closing.
You will also pay Land Transfer Tax on the amount of the Purchase Price. 

Searches need to be conducted for any outstanding work orders from the City PLUS any judgements or liens against the property. (that the previous owners may have) The utilities and taxes need to be verified. You may be eligible for Tax Rebates as First Time Home Buyers. Land Transfer Tax calculator.

Your real estate lawyer works in your best interests to secure, probably the most expensive purchase families make.  During the time you are at the lawyers office,  give some thought to how you hold title (who's name the house be registered) whether it is Joint Tenancy or as Tenants in Common. This is the time to discuss survivorship, your will and testament.   
  
You will receive a Statement of Adjustments (who pays for what) prior to closing, preparing you for the amount of funds to bring to the closing inclusive of fees, taxes and net of your deposit. You will need to bring Photo ID and a credit card for Identification.

Here at Stan Gelman QC wiselawyer.ca use trusted and knowledgeable real estate lawyers and Law clerks. For more information, or a detailed quote please contact me at 905.270.5110.

Stan Gelman QC

Flipping is Taxable -

You purchased a Toronto Condo Unit five years ago.
You purchased the unit and intended to live there;
You moved in upon Registration and moved out 15 days later.
You changed your Driver's License Information.

You didn't sell you other primary residence did you?

SO?  

Condominium Sales Could Lead to Large Tax Bills
Posted by Keir WilmutIf you sold a condominium in Canada’s booming housing market, don’t count your profit just yet – the Canada Revenue Agency could soon be knocking on your door with a large tax bill.Canadians typically don’t have to pay taxes on the profit we earn when we sell our homes – as long as the home was our “principal residence.” To qualify as a principal residence, the CRA considers factors including whether a person lived in the home, and whether it was designated as a principal residence.However, the CRA – in what has been dubbed the “Condo Project” – is increasingly challenging Canadians’ designation of their condominium unit as their principal residence.The distinction can result in a significant tax bill. If you bought a condominium for $300,000 and sold it for $500,000, as long as it qualifies as your principal residence you don’t have to pay any taxes on your $200,000 profit.However, if the CRA deems that condominium unit to have been an investment property, you would have to pay tax on this gain. In the highest tax bracket, this could result in a tax bill of $46,000!Making matters worse, if the CRA determines that you were in the business of buying and selling condominium units, the tax bill could be $92,000. If they find evidence that you made a false disclosure, they could levy fines bringing the total tax bill to a whopping $138,000!Red flags that might lead the CRA to take a closer look at the sale of a unit include:§ an owner who sells a unit shortly after registration, even if he or she had signed a purchase agreement years in advance;
§ an owner who says he or she intended to move into a condominium unit, but subsequently changed his or her mind;
§ an owner who purchased a condominium unit before it was built and then sold his or her right to buy that unit pursuant to an assignment clause; and
§ an owner who buys and sells multiple condominium units.
Even moving into a condominium may not be enough to satisfy the CRA. One woman purchased a condominium in 2006, and moved in in 2011. However, after moving in she decided it was too small, and moved out fifteen days later. The CRA hit her with a bill for $72,000 in tax, and $36,000 in penalties.If you get hit with an unexpected tax bill, or if you are considering selling a condominium unit you meant to move into but never quite did, we recommend you talk to a lawyer.

Stan Gelman  a Real Estate Specialist in Toronto and Wise Lawyer specifically advised me that unless I reside in the property for a minimum of one year  CRA would be seeking profit as I am not exempt.

How many of you are in that situation?