On June 19, 2009, the federal government passed legislation that implemented Ontario’s new Harmonized Sales Tax, which will take effect on July 1, 2010. For information on how it will affect condo buildings, see this post at The Condo Law Blog. While the tax will not apply to resale home purchases and is set to be rebated for new homes under $400,000.00, it will have an effect on related aspects of the real estate industry. The primary areas where you will see effects are:
- Legal fees and disbursements
- Real estate commissions
- Home inspections
- Moving costs
If you wish to avoid these costs, your purchase or sale must close before July 1, 2010.