As usual, the transaction may be subject to agreed financing at the higher price that the new buyer is willing to pay. However, as some mortgage brokers are not familiar with financing a transfer transaction, it can be difficult to obtain permission to purchase the new purchaser. This is something that needs to be considered long before the original buyer and new buyer begin their negotiations seriously. But once there has been an assignment, it is the circumstances of the new buyer that determine the possibility of an HST discount. He or she must meet the prescribed legal requirements and may either apply directly to the Canadian Revenue Agency (CRA) or agree with the contractor that the amount of the rebate is credited at closing. Does this mean that the original buyer will get away with it freely after the signing of the transfer agreement? No no. The sale of a contract for the sale and sale of a new home may depend on the agreement of the owner with whom the first buyer originally entered into the contract to build and sell the new house. The contract may be related to the right of the first purchaser to transfer the contract to an authorized buyer and, in many cases, the owner collects a fee from the first buyer for the transfer of the contract to another person. The GST/HST discount for new apartments and, if applicable, a provincial discount for new apartments may be available for a new home purchased by a contractor and for new home-built dwellings.
Guide RC4028, GST/HST New Housing Rebate, defines the eligibility criteria for both types of discounts on new GST/HST units and provincial new housing rebates. Sometimes, however, the agent may already have signed an amendment to the purchase and sale agreement authorizing a transfer of the GSP. Under these conditions, there may be little or no barrier to the allocation of the GSP. In all cases, it is appropriate to refer to the GSP to ensure that there are no assignment conditions [i.e. 90% of units must be sold (if the condo) is authorized before an assignment is authorized]. (On the other hand, some owner agreements allow the owner himself to freely assign the agreement to any other contractor registered with Tarion, which completely frees the owner from his obligations.) One detail that should also be negotiated is the responsibility for the payment of the commission of the transfer agreement. In any case, the final purchase price that must be paid by the new buyer to the original buyer is usually: If the sale does not close, the seller wastes time, money and resources. Although Pascal and Chantal do not have a history of buying and selling real estate, it would not be feasible for their family of five to occupy the condo as a place of residence. In the absence of evidence to support a contrary intention, the primary purpose of acquiring the shareholding in the condominium is considered to be for the purpose of the sale of the condominium or an interest in it in the context of a business, adventure or commercial concern. As a result, they are the owners of the new condo for GST/HST purposes. As the sale of their shares in the unit is not exempt, GST/HST applies to the sale of their shares. This, in turn, requires a careful review of the terms of this agreement.
If a purchase and sale contract is awarded for a new home, there may be two owners of the house – the original builder (builder A) and the first buyer (the assignee).