When navigating the complexities of purchasing a new home in Ontario, understanding the nuances of the New Home HST Rebate can provide significant financial benefits. This rebate system, designed to alleviate some of the tax burdens for homebuyers, can be intricate, with various eligibility criteria and application processes that need careful consideration. The New Home HST Rebate is particularly crucial in regions with high property prices, as it can significantly offset the upfront costs associated with buying a new home. By effectively reducing the amount of HST paid, the rebate makes home ..read more

Understanding the intricacies of corporate residency requirements is essential for any entrepreneur or investor looking to establish or expand their business operations in Canada. This is particularly relevant when considering the differences in regulations between provincial (Ontario) and federal (Canadian) corporations. As a business and corporate lawyer, I have navigated these waters numerous times, assisting clients from various international backgrounds in aligning their corporate structures with Canadian laws. The Evolution of Director Residency Requirements in Ontario Historically, Onta ..read more

Understanding the complexities of real estate transactions doesn’t end at closing. In fact, issues that arise post-closing can be particularly challenging for new homeowners. As a seasoned real estate lawyer in Ontario, I’ve encountered numerous cases where clients face unexpected problems with their new properties, from malfunctioning appliances to undisclosed damages. This article aims to shed light on these post-closing issues, providing guidance on how to navigate them effectively. What Happens When Appliances Break Down After Closing? One common concern for new homeowners is the breakdown ..read more

As a buyer in the real estate market, the prospect of not being able to close on a property can be daunting. The implications of such a scenario are significant, affecting not only the immediate transaction but potentially having long-term financial and legal consequences. Understanding these implications is crucial for anyone navigating the Ontario real estate market. Immediate Consequences: Forfeiture of Deposit The forfeiture of the deposit is the most immediate and palpable consequence of failing to close a real estate transaction. In Ontario, the law is clear: if a buyer cannot complete ..read more

In December 2023, Ontario introduced a transformative shift in real estate practices by implementing an open bidding process as endorsed under the updated provisions of the Trust in Real Estate Services Act (TRESA). This strategic move, aimed at fostering a more transparent and fair market, now allows sellers to reveal offer amounts to prospective buyers, diverging from the long-criticized practices of blind bidding that compelled bidders to inflate their offers without an insight into competing bids. Deciphering the Mechanism of Open Bidding in Ontario The open bidding process inaugurated un ..read more

As recent month to month inflation rates for Canada continue to remain above 5%, with some months as high as 8% (in the year of 2022), the Bank of Canada continues to warn Canadians of further interest rate hikes even after the multiple interest rate increases we have experienced this year. The logic is that the increased interest rates encourage people to save more, spend and borrow less which in turn encourages companies to increase their prices at a slower pace or even lower prices to entice people to spend again, resulting in decreased inflation rates. If you are in the process of obtainin ..read more

Does a corporation operating in Ontario require a minute book? Yes, all corporations (whether it is an Ontario Corporation or a Federal Canadian Corporation) are required by law to maintain a minute book with up-to-date and accurate records. What exactly is a minute book? A corporate minute book is a collection of documents which includes the following: 1. Articles of Incorporation A legal document that is submitted to the Provincial or Federal government in order to establish or form the corporation. As it is registered with the government, a copy of the Articles of Incorporation can be obta ..read more

For those who have already gone through the process of both purchasing a new construction home and purchasing a resale home, you know that the purchasing experience is surely not the same. The new construction area can be especially daunting as homebuyers are more likely to deal directly with a builder’s (seller’s) representative compared to resale transactions which more than not have a realtor representing and guiding the purchaser throughout the process. Please use this guide to educate yourself and make your new construction home purchase experience less daunting. Discussion Topics 1. Wha ..read more

To combat the sharp rise in real estate prices, the Canadian government has proposed new GST/HST rules in relation to Assignments (effective May 7, 2022) and Income Tax rules in relation to flipping real estate in general (effective January 1, 2023). GST/HST to Apply for all Assignment Sales As of May 7, 2022, where an individual sells an assignment of a new build or substantially renovated residential property, the transaction will be subject to HST, regardless of original intentions, as per the Canadian Excise Tax Act (“ETA”). Every individual assignor of residential real estate will now ha ..read more

Starting a business is both exciting and laborious. One of the first steps in starting a business is selecting between the three main business structures available in Ontario, a) Sole Proprietorship, b) Partnership and; c) Corporation. The following will guide your selection process, but it is always recommended to discuss your specific situation with both an accountant and a lawyer before proceeding further. The sole proprietorship is the easiest and most inexpensive to set up, the owner (can only be one person) solely controls the business, tax reporting is simple as it does not require a se ..read more