HST Implications for Real Estate

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Key Takeaway
Consider HST implications on every deal you work on, these types of mistakes get messy.

*Save the table below and use it as a Quick Guide.

Some of the most problematic deals that come across my desk involve an HST issue.

I've seen clause 7 written incorrectly numerous times, even once by a municipality... ended up costing them thousands.

I remember a mixed use transaction where the buyer and seller didn't pre-determine the residential vs commercial allocation.

This one led to a lot of headaches.

So, because the applicability of HST in real estate transactions can be complicated, I decided to put together a little table to help illustrate it.

*I'm a visual learner so these kind of things work well for me.

HST Table for Real Estate Transactions in Canada
HST Table for Real Estate Transactions in Canada

Now, this table is meant as a starting point.

There are, of course, scenarios that lead to exceptions, special rules, or additional considerations - but this would be an excruciatingly long newsletter if I wrote them all out.

Use this as a starting point. It will point you in the right direction, and help you to ask the right questions.

And as always, when you're not confident, call up your broker or a real estate lawyer.

I feel like I say that so much I should include it as a footer.


Written by
Zachary Soccio-Marandola
Real Estate Lawyer

Direct: (647) 797-6881
Email: zachary@socciomarandola.com
Website: www.socciomarandola.com


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