Ontario’s new real estate cooling off plan and the 15% foreign buyer tax!
Ontario’s new real estate cooling off plan has the following changes:
1) 15% Non-Resident Speculation Tax on residential single family dwellings purchased by non-citizens or non-permanent residents that are not subsequently attaining citizenship or permanent residency.
2) Applying Rent Control to all forms of residential rentals capping increasing to no more than 2.5% at a time.
3) Making it more difficult for landlords to evict tenants for their own use of the premises.
4) Uniforming residential leases with additional provisions/explanations for tenants.
5) Utilization of surplus provincial lands for development.
6) Vacant Home property tax surcharges for owners who own unoccupied homes.
7) Equalizing property tax rates for single family dwelling and multi-residential buildings.
8) Vacant Land property tax surcharges for owners who own residential land that is not under new housing construction.
9) Increasing infrastructure to track and catch assignments and flipping real estate transaction without ever acquiring same..
10) Readdressing the rules that govern real estate agents and best practices, reconsidering “double-ending”.
11) Increasing the mediums used to educate consumers on real estate buying and selling.
12) Focusing on elevators and making them more reliable, also penalizing landlords in the sense that they can’t increase rent without fixing their elevator first (for example).
13) Expanding advisory teams and groups both at the municipal and provincial level to gather data and better understand the real estate market in Ontario.
14) Larger builder programs and incentives to promote new-residential rental building construction.
15) Controlling unit sizes in high-density developments like condominium buildings, condominium stacked town homes and condominium communities, forcing developers to consider larger and small units to accommodate families of all sizes.
16) Data collection at the real estate acquisition level, whereby lawyers will have to provide additional information upon the transfer of real estate to identify all parties including those that are off-title that may have a beneficial interest.
If you have any questions, feel free to contact Jeff Levy at Levy Zavet PC, Lawyers.