The City of Toronto is looking to place a lien on the property for unpaid taxes. That means that the vacant home tax will become the Purchaser’s responsibility.
Have a look at what the City is saying:
“Change of Ownership & the Vacant Home Tax
The Vacant Home Tax has implications for property transactions, both for purchasers and vendors:
- It is the responsibility of purchasers and vendors to make the appropriate arrangements to ensure that the declaration has been filed.
- The Vacant Home Tax will form a lien on the property, and any unpaid taxes will become the purchaser’s responsibility.
- If a closing occurs between January 1 and the closing of the declaration period on February 2, the vendor must complete the declaration prior to the closing, as only the vendor will know the property’s occupancy status for the prior year.
- If a closing occurs after the declaration period – February 3 to December 31 – the purchaser must submit a declaration in the following year. The purchaser qualifies for the “transfer of legal ownership” exemption.
- Vendors should provide a copy of the completed and filed property status declaration to the purchaser.
- Vendors should provide a statutory declaration at closing confirming the filed property status declaration is true and correct.”
COMMENT
If you are a Purchaser, be careful. Include the correct provisions in your Offer to ensure that you will not be responsible for this new added tax.
Brian Madigan LL.B., Broker