Land Transfer Tax Refunds

There is often confusion as it relates to land transfer tax refunds and "theories" as to how the refund applies. 

The requirements to be eligible for such refund under the Act are as follows:

1. you must be a first time* purchaser of a newly constructed OR resale house/condominium; and
2. you must be at least eighteen (18) years of age.

*First time purchaser means that you have never owned an interest to a home/residential property anywhere in the world.

In terms of spouses, if one spouse has previously owned an interest to a home/residential property and the other did not, please note that the spouse must have sold their interest to such owned property prior to the date of your marriage in order for the spouse who has never owned to still be eligible for the aforementioned refund. 

In terms of the refund itself, the word "refund" is somewhat of a misnomer.  Originally when the refund provisions were legislated in fact a refund affidavit was filed with the Government and a cheque was produced and mailed back some months later for such refund.  As the program now works the refund is instantly available on closing the real estate purchase in the sense that you simply do not pay the land transfer tax amount as calculated up to a maximum amount of the aforementioned $4,000.00 amount.  Any amount of land transfer tax above the allowable maximum refund amount must still be paid on closing.