In Ontario, who is responsible for paying the land transfer tax when a property is purchased?
Correct Answer
C) The buyer of the property
In Ontario, the land transfer tax is paid by the buyer (purchaser) of the property at the time of closing. This tax is calculated based on the purchase price and is typically paid through the buyer's lawyer or notary during the transaction.
Why This Is the Correct Answer
In Ontario, the land transfer tax is a statutory obligation of the buyer (purchaser) of real estate. This tax is calculated based on the purchase price and must be paid at closing through the buyer's lawyer or notary. The Land Transfer Tax Act specifically designates the transferee (buyer) as the party responsible for this payment, making it a standard closing cost that buyers must budget for when purchasing property.
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- → Which of the following best describes when land transfer tax is typically paid?
- → A first-time buyer purchases a $450,000 home in Ottawa, outside the City of Toronto. Which land transfer tax relief can they claim?
- → Which type of real estate transaction is generally exempt from GST/HST in Canada?
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- → A buyer purchasing a $2 million commercial property in Alberta asks what provincial land transfer tax will be due on closing. What is the correct response?
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