One of the most confusing areas of real estate is the GST. Most resale homes are exempt from GST, but buyers should still ask the appropriate question and deal with it in their offer to purchase, to be safe.
For brand new homes and condos, the offer should say whether the purchase price is “Plus GST” or “GST Included’; and who gets the GST new home rebate.
Buying a vacant cottage/chalet lot or a hobby farm is even more confusing. If an individual is selling, the sale is GST-exempt, but if the seller is a corporation, 5% GST is payable.
Residential rents are exempt from GST, as are condo maintenance fees. But GST is payable on real estate commissions, legal fees, some disbursements, and the cost of a new survey or home inspection.
If in doubt about the GST, check it out before signing an offer. Because if you’re wrong, it’s a 5% mistake.
