Whenever you sell a Real Estate Property, you must determine whether you are required to pay Capital Gains Taxes. Generally, if you are selling your principal residence, there will be no Capital Gains Taxes payable. However, for many Buyers of Bow Valley Property, the Property is not their principal residence and sometimes they are earning revenue from it. In addition, many Sellers are Non-residents of Canada and may or may not be subject to Canadian income taxes. Whether your sale of Property is subject to Capital Gains taxes is an issue you should deal with your Canadian Accountant about. It is an issue that is not deal with by the Seller’s Lawyer. See also Non-Resident Sellers
CONTRACT FOR NEW HOME-CONDO TO BE CONSTRUCTED
GOODS AND SERVICES TAX (GST)
GST stands for Goods and Services Tax and is a value added tax created by the Canadian Government and payable by the Buyer and collected by the Seller. GST is generally NOT PAYABLE on the purchase and sale of USED real estate Property used for residential purposes.
GST may or may not be payable on the purchase of a vacant Lot.
GST is payable on the purchase of a NEW House of Condo.
Unless it is a straight forward, normal purchase, you should consult with your Accountant to determine the implications, to you, respecting the Goods and Services Tax Act.
PERSONAL PROPERTY – CHATTELS
Virtually every Contract respecting the purchase of a House or Condo includes, what is know in law as Personal Property or Chattels. We know them as fridges, stoves, dishwashers, satellite dishes, hot tubs, etc. These items don’t legally transfer with the Transfer of Land, however “convention” has it that they do. To legally transfer Personal Property a Bill of Sale should be used.
Review these helpful links:
An Introduction to Land Titles in Alberta
Land Title Procedure Manual
Alberta Land Titles
Alberta Land Title Fees .