Friday, March 26, 2010
HST and Resale Real Estate
Many potential home buyers and sellers have been worried about the implications of the HST which kicks in as of July 1, 2010. In fact, no HST will be applicable on the purchase price of a resale home. Some ancillary services, however, will be subject to the new tax. Sellers will have to pay 13% HST on real estate commissions and legal fees associated with selling. Buyers will pay 13% HST on their lawyer's fees and things like house appraisals or status certificates on a condo. But the bulk of the expense - the purchase price, is not taxable. The implications, therefore, for home buyers of resale homes, are not huge. Certainly no reason to panic or rush a decision to purchase your home.