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HST and the Real Estate Transaction

HST applies to most of the services provided in completing the real estate transaction. For example, 13% HST is applied to the commission a REALTOR charges for facilitating a sale. The tax is paid by the person responsible for paying the commission - usually the seller. You must be sure that the HST does not apply, please read about New rules with the HST, please check the Ontario government HST websites

REALTOR commissions are taxable even if the total HST (GST+PST) owed is reduced by a rebate, or the sale of the property is exempt form HST (GST+PST). For example, if you sell a used home, the sale price is exempt from HST (GST+PST) but the REALTOR's commission is still taxable. You must be sure that the HST does not apply, please read about New rules with the HST, please check the Ontario government HST websites HST applies to many other services involved in the real estate transaction. These include fees for appraisals, referrals, surveys and legal assistance. Again, HST (GST+PST) is charged on these fees regardless of whether the house you purchase is exempt from the tax. One exception is that mortgage broker fees are exempt from HST (GST+PST) if the fees are charged separately from any taxable real estate commissions. Additionally, mortgages and interest on mortgages are HST (GST+PST) exempt.

This series of articles is brought to you by A. Mark Argentino and other real estate related resources, including Canadian Real Estate Association CREA and the Ontario Real Estate Association OREA. Back to list of Real Estate Helpful Articles

Whether you are interested in a Power of Sale Property, a Foreclosure Sale or a regular property purchase, I can assist you with all of the complexities when you purchase or sell your next property.  Please don't hesitate to email me If you have any questions or require further information, please send me an email. Thank you, Mark Argentino Read about Power of Sale, Bank Sales and Foreclosure Properties FAQ's Read a very detailed section about Power of Sale and Foreclosure or go back to list of Real Estate Helpful Articles