Question:
Does a buyer have to pay land transfer tax on a modular home sitting on a land leased property?
Answer:
Depends upon how long the lease is.
If the lease is for 50 years or more, or potentially 50 years or more, the full amount of Land Transfer Tax is payable. It doesn’t matter that it’s just a lease.
Brian Madigan LL.B., Broker
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Comments 2
Hi Brian.
You answer doesn’t address if the land lease is less than 50 years. In this case is the land transfer tax zero?
Thanks,
Peter
Author
Yes, Land Transfer Tax is only payable in respect to a sale. But, a 50 year Lease is defined as a “sale” triggering the LTT.
If the Lease is less than 50 years, like 49 years and 364 days, then no LTT is payable.