On December 13, 2007, proposed amendments to the Land Transfer Tax

were announced in the 2007 Ontario Economic Outlook and Fiscal Review. The

proposed amendments must be passed by the Legislature and receive Royal

Assent to become law. This notice provides general information. It is not

exhaustive and should not be considered as a substitute for the legislation.

It is proposed that the Land Transfer Tax Refund Program for First-Time

Homebuyers be expanded to include purchases of resale homes. The maximum

refund would be $2000.

This proposal to include resale homes would be effective for agreements of

purchase and sale entered into after December 13, 2007.

Eligible first-time homebuyers of newly constructed homes should continue to

have their lawyers claim the refund under current procedures at the time of

registration. See Tax Bulletin LTT4-2003 Refunds for First-Time Purchasers of

Newly Constructed Homes. The date the agreement of purchase and sale is

entered into is not a factor with respect to newly constructed homes.

homebuyers of resale homes applying for a refund:

• Land transfer tax must be paid at registration
• The following documentation must be submitted to the Ministry of

Revenue at the address at the end of this notice:

1. A properly completed form - Ontario Land Transfer Tax Refund

Affidavit for First-Time Purchasers of Eligible Homes (Resale);

2. A copy of the registered instrument on which land transfer tax was paid

(in the case of electronic registration, please include a copy of the

docket summary which relates to the transaction);

3. A copy of the agreement of purchase and sale (only those agreements

of purchase and sale entered into after December 13, 2007 may

qualify) along with a copy of the statement of adjustments.

• Refund applications on resale homes cannot currently be made

electronically.

Although eligible first-time buyers of resale homes may apply for the refund once

the transaction has closed and the tax has been paid, the ministry would retain

the refund requests for processing and would issue refunds if the proposed

amendments become law.

The following eligibility requirements are proposed to apply for resale homes,

and continue to apply for newly constructed homes:

• The purchaser must be at least 18 years of age.
• Application for the refund must be made within 18 months after the date

of the conveyance or disposition.

• The purchaser must occupy the home as his or her principal residence

within 9 months of the date of closing.

• The purchaser cannot have owned a home or had any ownership

interest in a home, anywhere in the world.

• A spouse of the purchaser cannot have owned a home or had any

ownership interest in a home, anywhere in the world while he or she was

the purchaser's spouse.

A resale home is referred to as an eligible home in the proposed legislation.

It is proposed that eligible home be defined as follows:

a) a detached house;

b) a semi-detached house, including a dwelling house that is joined to

another dwelling house at the footing or foundation by a wall above or

below grade or both above and below grade;

c) a townhouse;

d) a share or shares of the capital stock of a co-operative corporation if the

share or shares are acquired for the purpose of acquiring the right to inhabit

a housing unit owned by the corporation;

e) a mobile home that complies with the Canadian Standards Association

Standard CAN/CSA-Z240 Mobile Homes and is suitable for year round

permanent residential occupation;

f) a condominium unit;

g) a residential dwelling that is a duplex, triplex or fourplex;

h) a partial ownership interest as a tenant in common of real property if the

ownership interest was acquired for the purpose of acquiring the right to

inhabit a housing unit forming part of the real property;

i) a manufactured home that is manufactured in whole or in part at an

offsite location, that is intended for basement installation, that is suitable

for year round permanent residential occupation and that complies with,

(i) the Building Code made under the Building Code Act, 1992;

(ii) if the manufactured home is constructed in sections that are

not wider than 4.3 metres, Canadian Standards Association

Standard Z240.2.1 Structural Requirements for Mobile Homes

and Canadian Standards Association Standard Z240.8.1

Windows for Use in Mobile Homes, or

(iii) if the manufactured home is constructed in sections that are

4.3 metres or wider, Canadian Standards Association

Standard A277 Procedure for Certification of Factory Built

Houses; or;

j) any other residential property as may be prescribed.

For electronic land registrations, providing the proposed amendments have been

passed and the electronic land registration system has been updated, all eligible

first-time homebuyers would be able to claim an immediate refund at time of

registration by completing the required statements under the explanation tab of

the electronic affidavit.

If registering on paper, providing the proposed amendments have been passed,

the immediate refund would be claimed by filing an Ontario Land Transfer Tax

Refund Affidavit for First-Time Purchasers of Eligible Homes (Resale) or an

Ontario Land Transfer Tax Refund Affidavit for First-Time Purchasers of Newly

Constructed Homes at the Land Registry Office.

Land Taxes Section

33 King Street West

PO Box 625

Oshawa ON L1H 8H9

Tel.: 905-433-6361

Fax: 905-433-5770

TTY (Teletypewriter): 1-800-263-7776

the Ministry of Revenue may be obtained online at www.rev.gov.on.ca.

© Queen's Printer for Ontario 2007

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