Get your rebates back from the government, you may be applicable for gst homebuyers / the transfer tax credit / taxes charged in error / city tax rebates etc. If you find this to be a difficult task as most of you investors and have better things to do not to mention your present lawyer and accountant can’t figure it out, go to a professional. Condo Rebates they offer a professional consultation with no fees up front.  They merely retain 15% of the uncollected amounts.  Alternatively you can strongly suggest that your lawyer or accountant do if for you, however, as they may not be updated with the latest tools and knowledge you run the risk of not getting back all of your rebates.  If you have the time try to do it yourself, you must however be willing to follow up and don’t be discouraged if you must file time and time again before you get it right.  These rebates are available but not user friendly.  Try yourself and then ask a professional.

Condo Rebates
What is a rebate and why is it applicable to the purchase of my condo? This is the question that I receive and the answer that I give may very well confuse you to say the least. (more…)

Required Documents to determine your Pre-Construction Rebate Eligibility:

All documents required should have been provided to you by your lawyer on Final Closing.  If you are missing any documents you will need to request these documents from your lawyer.. (more…)

Rebate(s)

Who is eligible for pre-construction Rebates?

(more…)

Though it is possible to do the research and attempt to acquire some if not all of the available rebates that are available to you, most prefer to have someone who is knowledgeble help the through this process as the following you may find to be somewhat extensive and overwelming. However, it will answer some of your questions and help you to understand if any of these are available to you and if you are elegible.

GST REBATE:
Three Types of Rebates when buying from a Builder or by way of Assignment

NOTE: GST/HST does NOT apply to RESALE homes. GST/HST is only applicable when purchasing a home from a builder directly.
1. GST TRANSITIONAL REBATE (2006) 7%-6%
On May 2, 2006, the government of Canada announced a reduction of the GST from 7% to 6%. As a result purchasers who purchased a property directly from the Builder/Developer and entered into an Agreement of Purchase and Sale with the builder/developer on or before May 2, 2006 AND where possession AND ownership of the property takes place after July 1, 2006 are entitled to a Transitional Rebate representing the 1% reduction less any applicable GST/HST rebate credited to the purchaser on the Final Statement of Adjustments.

GST TRANSITIONAL REBATE (2008) 6%-5%
The further reduction of the GST from 6% to 5% . As a result purchasers who purchased a property directly from the Builder/Developer and entered into an Agreement of Purchase and Sale with the builder/developer on or before October 20, 2007 AND where possession AND ownership of the property takes place after January 1, 2008 are entitled to a Transitional Rebate representing the 1% reduction less any applicable GST/HST rebate credited to the purchaser on the Final Statement of Adjustments

NOTE:
• A purchaser who signed a Purchase and Sale Agreement with the Builder/ Developer on or before May 2, 2006 and where possession and ownership was after January 1, 2008 is entitled to BOTH rebates. Therefore would be entitled to a 2% reduction. GST 7% to 5%.
• Only the original purchaser is entitled to this rebate
• If you purchased a property by way of assignment the Assignee is entitled to the rebate. The assignor has assigned all rights to the assignee.
• Excise Tax Act 256.7 – rebate shall not be paid to an individual unless the individual files an application for the rebate within two years after the day ownership of the complex or unit is transferred to the individual
• Required Documents; Agreement of Purchase and Sale , Agreement of Purchase and Sale Amendment Form, Final Statement of Adjustments.
• It is the purchaser’s responsibility to determine and file the rebate within two years of taking ownership.

2. GST/HST New Home Rebate

The GST/HST New Home Rebate applies to new properties purchased from a builder/developer which are to be used as a primary place of residence for the purchaser or an immediate family member as defined by the act. Purchasers of new homes priced up to $350,000.00 may qualify for the maximum rebate of $8,750.00 or 36% of the GST/HST paid on the purchase price, whichever is less. For homes priced at more than $350,000.00 (but less than $450,000.00) the rebate reduces, for properties priced over $450,000 no rebate is given.

NOTE:
• If you purchased a property by way of assignment the Assignee is entitled to the rebate. The assignor has assigned all rights to the assignee.
• Excise Tax Act 254.3 – rebate shall not be paid to an individual unless the individual files an application for the rebate within two years after the day ownership of the complex or unit is transferred to the individual
• Required Documents; Agreement of Purchase and Sale, Agreement of Purchase and Sale Amendment Form, Final Statement of Adjustments, Utility Bill (to prove you reside in the property)
• It is the purchaser’s responsibility to determine and file the rebate within two years of taking ownership.
• Provincial rebate for new housing located in Ontario and British Columbia A provincial new housing rebate may be available to an individual for some of the provincial part of the HST the individual paid to buy, build or substantially renovate their primary place of residence that is located in Ontario or British Columbia. The existing new housing rebate for some of the GST or federal part of the HST paid by an individual for those purchases will remain in effect.

3. GST/HST New Home Rebate

Investor purchaser (rather than an end user). The GST/HST Rebate (that would usually be obtained by the builder directly from the government in a typical owner-occupied project) will be paid by the purchaser investor to the builder in addition to the purchase price as a closing adjustment. If this is the case or in any case when an investor does not qualify for the GST/HST rebate to be paid directly to the builder (having been assigned to the builder by the purchaser as stated in the terms of the purchase agreement with the builder) the investor may apply for a return for the GST rebate (which will be paid to the builder by the buyer as a closing adjustment)

NOTE:
• If you purchased a property by way of assignment the Assignee is entitled to the rebate. The assignor has assigned all rights to the assignee.
• Rebate shall not be paid to an individual unless the individual files an application for the rebate within two years after the day ownership of the complex or unit is transferred to the individual
• Required Documents; Agreement of Purchase and Sale, Agreement of Purchase and Sale Amendment Form, Final Statement of Adjustments, Lease Agreement (One year lease agreement, to prove you lease the property)
• It is the purchaser’s responsibility to determine and file the rebate within two years of taking ownership.
• Provincial rebate for new housing located in Ontario and British Columbia A provincial new housing rebate may be available to an individual for some of the provincial part of the HST the individual paid to buy, build or substantially renovate their primary place of residence that is located in Ontario or British Columbia. The existing new housing rebate for some of the GST or federal part of the HST paid by an individual for those purchases will remain in effect.

The following chart shows how to calculate the GST New Housing Rebate for new homes.
Purchase Price Rebate Calculation
$350,000 or Less 36% of the GST/HST paid, whichever is less
$350,000 to $450,000 $amount X ($450,000 – Price)/100,000
$450,000 or more No Rebate

The maximum allowable GST/HST new housing rebate is:
• $6,300, if you paid 5% GST, or 12%, 13%, or 15% HST where the federal part of the HST was at 5%;
• $7,560, if you paid 6% GST, or 14% HST; or
• $8,750, if you paid 7% GST, or 15% HST where the federal part of the HST was at 7%.

Research / Conclusions:
From speaking with government officials it seems to me that they have a sophisticated program in which lists all owners of particular buildings and who has and hasn’t received their rebate. I came to this conclusion when a client filled out an application on her own but I let her know that it was filled incorrectly with missing data. (There was no signature, missing business number of the developer, and incorrect dates entered) she provided her name and postal code and all her information came up. If this is the case the government has the power to contact every eligible purchaser but does not do that. This is why the rebate program has been created.

Toronto Land Transfer Tax Rebate:

City of Toronto By-law No. 1423-2007

On October 23, 2007, the City of Toronto approved a municipal Land Transfer Tax that will be levied in addition to the current Ontario provincial Land Transfer Tax to be effective for closings on and after February 1, 2008.

• You are entitled to fill this Rebate if you entered into a Purchase and Sale Agreement with the builder on or Before December 31, 2007. (Rebate, agreement entered into on or before December 31, 2007)
• If purchased by way of assignment the assignee is eligible for this rebate
• If you are not a first time home buyer you are eligible for this rebate under “grandfathering” as the tax did not exist and did not come into effect at the time of purchase.
• You must apply for this rebate within 18 months from the time you took ownership of the property. ( (B). An application for a rebate under this section shall be made before the expiration of 18 months after the date on which the conveyance or the disposition for which the tax is payable under this Chapter occurs.)
• The by-law states that the City has 180 business days to review your application. (From past experience it seems that they wait till the 179th day to process your application
• Required documents: Toronto Land Transfer Tax Rebate Form, Agreement of Purchase and Sale , Agreement of Purchase and Sale Amendment Form , Final Statement of Adjustments, and LRO # 80
• Even after submitting these required documents the city requires evidence that you in fact paid the land transfer tax (even though it states it has been paid on LRO#80, they require proof of payment)
• Interest is paid at 4.5% on the amount paid calculated from the time the application is received. Interest on refunds and rebates
• The affidavit MUST be sent out within 10 days of having it notarised, or it will not be accepted.

Excise Tax Act
254. (1) In this section,
“relation” of a particular individual means another individual who is related to the particular individual or who is a former spouse or common-law partner of the particular individual;
“single unit residential complex” includes
(a) a multiple unit residential complex that does not contain more than two residential units, and
(b) any other multiple unit residential complex if it is described by paragraph (c) of the definition “residential complex” in subsection 123(1) and contains one or more residential units that are for supply as rooms in a hotel, motel, inn, boarding house, lodging house or similar premises and that would be excluded from being part of the residential complex if the complex were a residential complex not described by that paragraph.
New housing rebate
(2) Where
(a) a builder of a single unit residential complex or a residential condominium unit makes a taxable supply by way of sale of the complex or unit to a particular individual,
(b) at the time the particular individual becomes liable or assumes liability under an agreement of purchase and sale of the complex or unit entered into between the builder and the particular individual, the particular individual is acquiring the complex or unit for use as the primary place of residence of the particular individual or a relation of the particular individual,
(c) the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the particular individual of the complex or unit or for any other taxable supply to the particular individual of an interest in the complex or unit, is less than $450,000,
(d) the particular individual has paid all of the tax under Division II payable in respect of the supply of the complex or unit and in respect of any other supply to the individual of an interest in the complex or unit (the total of which tax under subsection 165(1) is referred to in this subsection as the “total tax paid by the particular individual”),
(e) ownership of the complex or unit is transferred to the particular individual after the construction or substantial renovation thereof is substantially completed,
(f) after the construction or substantial renovation is substantially completed and before possession of the complex or unit is given to the particular individual under the agreement of purchase and sale of the complex or unit
(i) in the case of a single unit residential complex, the complex was not occupied by any individual as a place of residence or lodging, and
(ii) in the case of a residential condominium unit, the unit was not occupied by an individual as a place of residence or lodging unless, throughout the time the complex or unit was so occupied, it was occupied as a place of residence by an individual, or a relation of an individual, who was at the time of that occupancy a purchaser of the unit under an agreement of purchase and sale of the unit, and
(g) either
(i) the first individual to occupy the complex or unit as a place of residence at any time after substantial completion of the construction or renovation is
(A) in the case of a single unit residential complex, the particular individual or a relation of the particular individual, and
(B) in the case of a residential condominium unit, an individual, or a relation of an individual, who was at that time a purchaser of the unit under an agreement of purchase and sale of the unit, or
(ii) the particular individual makes an exempt supply by way of sale of the complex or unit and ownership thereof is transferred to the recipient of the supply before the complex or unit is occupied by any individual as a place of residence or lodging,
the Minister shall, subject to subsection (3), pay a rebate to the particular individual equal to
(h) where the total consideration is not more than $350,000, an amount equal to the lesser of $6,300 and 36% of the total tax paid by the particular individual, and
(i) where the total consideration is more than $350,000 but less than $450,000, the amount determined by the formula
A × [($450,000 - B)/$100,000]
where
A
is the lesser of $6,300 and 36% of the total tax paid by the particular individual, and
B
is the total consideration.
Owner-occupant of a residential unit
(2.01) For the purpose of subsection (2.1), an individual is an owner-occupant of a residential unit at any time if it is the primary place of residence of the individual at that time and
(a) it is owned at that time by the individual or by another individual who is their spouse or common-law partner at that time; or
(b) it is in a residential complex of a cooperative housing corporation and the individual, or another individual who is their spouse or common-law partner at that time, holds at that time a share of the capital stock of the corporation for the purpose of using the residential unit.
Relevant transfer date
(2.02) For the purpose of subsection (2.1), the relevant transfer date in respect of a residential complex that is supplied to the particular individual referred to in that subsection is the earlier of the day on which ownership of the complex is transferred to the particular individual and the day on which possession of the complex is transferred to the particular individual under the agreement for the supply.
Application for rebate
(3) A rebate under this section in respect of a residential complex or residential condominium unit shall not be paid to an individual unless the individual files an application for the rebate within two years after the day ownership of the complex or unit is transferred to the individual.
Transitional rebate
(1) If a particular person, other than a cooperative housing corporation,
(a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after July 1, 2006,
(b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and
(c) is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection, in respect of the tax referred to in paragraph (b),
the Minister shall, subject to subsection (7), pay a rebate to the particular person equal to 1% of the value of the consideration for the supply.
Transitional rebate
(2) If a particular person, other than a cooperative housing corporation,
(a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after July 1, 2006,
(b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and
(c) is entitled to claim a rebate under subsection 256.2(3) in respect of any residential unit situated in the complex,
the Minister shall, subject to subsection (7), pay a rebate to the particular person equal to the amount determined by the formula
A × [0.01 - ((B/A)/7)]
where
A is the consideration payable for the supply to the particular person of the complex, and
B is the amount of the rebate under subsection 256.2(3) that the particular person is entitled to claim in respect of the complex.
Transitional rebate
(3) If a particular person, other than a cooperative housing corporation,
(a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after July 1, 2006,
(b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and
(c) is entitled to claim a rebate under section 259 in respect of the tax referred to in paragraph (b) and is not entitled to claim any input tax credit or any other rebate, other than a rebate under this subsection, in respect of that tax,
the Minister shall, subject to subsection (7), pay a rebate to the particular person equal to the amount determined by the formula
A × [0.01 - ((B/A)/7)]
where
A
is the consideration payable for the supply to the particular person of the complex, and
B
is
(i) in the case where the complex is situated in a participating province, the amount of the rebate under section 259 that the particular person would have been entitled to claim if no tax under subsection 165(2) would have been payable or paid in respect of the complex, and
(ii) in any other case, the amount of the rebate under section 259 that the partic¬ular person is entitled to claim in respect of the complex.
Application for rebate
(7) A rebate under this section in respect of a residential complex shall not be paid to a person, unless the person files an application for the rebate within two years after the day on which ownership of the complex is transferred to the person.
Transitional rebate — 2008 rate reduction
(1) If a particular person, other than a cooperative housing corporation,
(a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after January 1, 2008,
(b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and
(c) is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection or under subsection 256.3(1), in respect of the tax referred to in paragraph (b),
the Minister shall, subject to subsection (7), pay a rebate to the particular person, in addition to the rebate payable under subsection 256.3(1), equal to 1% of the value of the consideration for the supply.
Transitional rebate — 2008 rate reduction
(2) If a particular person, other than a cooperative housing corporation,
(a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after January 1, 2008,
(b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and
(c) is entitled to claim a rebate under subsection 256.2(3) in respect of any residential unit situated in the complex,
the Minister shall, subject to subsection (7), pay a rebate to the particular person, in addition to the rebate payable under subsection 256.3(2), equal to the amount determined by the formula
A × [0.01 - ((B/A)/7)]
where
A
is the consideration payable for the supply to the particular person of the complex, and
B
is the amount of the rebate under subsection 256.2(3) that the particular person is entitled to claim in respect of the complex.
Transitional rebate — 2008 rate reduction
(3) If a particular person, other than a cooperative housing corporation,
(a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after January 1, 2008,
(b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and
(c) is entitled to claim a rebate under section 259 in respect of the tax referred to in paragraph (b) and is not entitled to claim any input tax credit or any other rebate, other than a rebate under this subsection or under subsection 256.3(3), in respect of that tax,
the Minister shall, subject to subsection (7), pay a rebate to the particular person, in addition to the rebate payable under subsection 256.3(3), equal to the amount determined by the formula
A × [0.01 - ((B/A)/7)]
where
A
is the consideration payable for the supply to the particular person of the complex, and
B
is
(i) in the case where the complex is situated in a participating province, the amount of the rebate under section 259 that the particular person would have been entitled to claim if no tax under subsection 165(2) would have been payable or paid in respect of the complex, and
(ii) in any other case, the amount of the rebate under section 259 that the particular person is entitled to claim in respect of the complex.
Transitional rebate — 2008 rate reduction
256.74 (1) If a particular person, other than a cooperative housing corporation,
(a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into after May 2, 2006, but on or before October 30, 2007, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after January 1, 2008,
(b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 6%, and
(c) is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection, in respect of the tax referred to in paragraph (b),
the Minister shall, subject to subsection (7), pay a rebate to the particular person equal to 1% of the value of the consideration for the supply.
Toronto Land Transfer Tax Rebate:
On October 23, 2007, the City of Toronto approved a municipal Land Transfer Tax that will be levied in addition to the current Ontario provincial Land Transfer Tax to be effective for closings on and after February 1, 2008.
City of Toronto By-law No. 1423-2007
Rebate, agreement entered into on or before December 31, 2007.
A. The Chief Financial Officer shall rebate the full tax paid by a transferee under this
Chapter where the bona fide agreement of purchase and sale relating to such conveyance
was executed on or before December 31, 2007 and the Chief Financial Officer has
received evidence satisfactory to him or her (which evidence may include an affidavit of
the transferee) that such agreement was executed on or before December 31, 2007.
B. An application for a rebate under this section shall be made before the expiration of
18 months after the date on which the conveyance or the disposition for which the tax is
payable under this Chapter occurs.
§ 760-63. Recovery of refund or rebate wrongly obtained.
Where a refund or rebate is made under this section to a transferee and it is subsequently
determined that the transferee was not entitled to the refund or rebate, or was entitled only to a refund or rebate in a lesser amount, the amount of the refund or rebate to which the transferee was not entitled shall, for the purposes of this Chapter, be deemed to be tax imposed by Article II which was required to have been paid by the transferee on the date the refund or rebate was made to the transferee by the City
Interest on refunds and rebates.
A. If the Chief Financial Officer, or any person or entity authorized by the Chief Financial Officer, makes a refund or rebate under this section, interest shall be paid on the amount of the refund or rebate, calculated at the rate of 4.5 percent per annum for the period from the date on which the amount that is refunded or rebated was paid to the City to the date on which such amount is refunded or rebated, provided that no interest shall be paid where the amount of interest is less than $1; and
B. notwithstanding Subsection A, where a rebate was available under § 760-59 or 760-60 at the time the conveyance was tendered for registration, interest shall only be payable from the date on which an application for such rebate has been submitted as provided herein.

If everyone is entitled to the rebates, why do they charge the fees in the first place?

Many buyers, their lawyers and accountants do not apply for them. Some look into it. Most do get some of the rebates, but the majority do not take the time to apply and follow up, nor do they know how. You didn’t think the government was going to make it easy did you? Why charge you in the beginning if they knew they would have to give it back?

You may qualify for rebates on your past transaction that could add up to $15,000 or more. (more…)