The procedure is simple, the day before closing the Transfer, together with the Land Transfer Tax Affidavit are taken to the Ministry of Revenue. The tax is then calculated and paid on the full amount as disclosed in the Affidavit. The Transfer will be stamped “LTT paid”.
When the Transfer is presented for registration subsequently there is no LTT payable, just the registration fees.
Naturally, the consideration should be “$2.00”. That way, no one will ever know the purchase price.
The full purchase price simply does not appear on the face of the Transfer, meaning for privacy purposes the purchase price would be concealed. But, it really only works for private sales, since if it were on MLS, there’s the MLS sale price.
So, why bother trying to hide it when there’s another source? It costs additional money to do this, perhaps $500.00, so it doesn’t come up that often.
This is the case with any transfer whether it be residential or commercial. In some cases, a Purchaser would want to conceal the price, certainly if it was a very good deal, and if the price were high, then, they might want everyone to know.
Brian Madigan LL.B., Broker