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Aug 25, 2017

Non-residential speculation tax settles some real estate disputes

The Ontario housing marketing has been a major topic of discussion in Canada this year. In places like Toronto, high demand and rising prices have led to growing controversy over foreign investment. In such a competitive market, real estate disputes over this and other issues are plentiful. However, the new non-residential speculation tax is said to be settling some of these concerns and contributing to a calming in the market.

The non-residential speculation tax is a 15 per cent tax on noncitizens buying real estate in Canada. While the tax is fairly new, people hope it will cool the market high-demand locations across the province. Recent statistics show that this may be happening, though a causal relationship between the tax and less real estate activity has not yet been proven.

In Barrie, agents say that legal issues and real estate disputes were plentiful when the market was in higher demand. Last summer and earlier in the spring, one house attracted 33 offers in a single day. Overall, though, one in four offers resulted in problems. The city has seen a year-over-year reduction in activity of 11.9 per cent compared to last summer. While prices are up 8 per cent year-over-year, they have dropped 17 per cent since March.

Keeping up-to-date on regulations and taxation is important for in Ontario and elsewhere. As new legislation arrives in an effort to temper the market, real estate disputes and problematic offers can arise for those caught unawares. A real estate lawyer is an excellent resource for those seeking information and assistance related to the legal process of buying and selling real estate.

Source: thebarrieexaminer.com, "Non-residential speculation tax on non-Canadian citizens credited for calming the market", Cheryl Browne, Aug. 16, 2017

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