How Section 116 of the Income Tax Act Can Affect Your Real Estate Transaction Overview When real property is sold by a non-resident of Canada, both the buyer and seller and their advisors should turn their minds to the provisions of section 116 of the Income Tax Act (the “ITA”). These provisions impose obligations and liability on both the buyer and seller, which should be addressed well before the date that the transaction is scheduled to close. In brief, section 116 of the ITA provides that a non-resident seller may notify the Canada Revenue Agency (CRA) of a proposed disposition of property, such notice setting out, among other things, the estimated amount of sale proceeds to be received, as well as the adjusted cost base of the property. This notice must be given using form T2062, “Request by a Non-Resident of Canada for a Certificate of Compliance Related to the Disposition of Taxable Canadian Property”. If the non-resident has not given such notice to CRA prior to the completion of the transaction (or if the notice was given but the details surrounding the transaction have since changed), the non-resident must notify CRA of the disposition no later than 10 days after closing. In the event that the non-resident seller fails to do so, the seller may have to pay a penalty of up to $2,500, even if the sale of the property does not result in any tax owing. Once CRA has received the non-resident seller’s notice and processed the request for a Certificate of Compliance, CRA will advise the seller of the amount of tax required to be paid and will issue the Certificate of Compliance upon receipt of payment. If no Certificate of Compliance has been issued, section 116 provides that the buyer will be liable to pay 25% (or 50% in some cases) of the purchase price to CRA on behalf of the seller, within 30 days after the end of the month in which the property is acquired (“Remittance Deadline”). The buyer will be entitled to withhold this amount from the purchase price for the purposes of remitting this payment. The Ontario Real Estate Association (OREA) standard form Agreement of Purchase and Sale, used in most residential real estate transactions in Ontario, contains a “residency” clause that is intended to address the requirements of section 116 of the ITA. The Holdback In most cases, the Certificate of Compliance will be issued by CRA after the transaction has been completed, as the tax is normally paid out of the proceeds of the sale. This means that the buyer’s lawyer will have to withhold 25% of the purchase price (or 50% for certain types of property) in trust (the “Holdback Amount”). As the Certificate of Compliance may not be available prior to the Remittance Deadline, the non-resident seller may request a ‘comfort letter’ from CRA which will allow the buyer’s lawyer to continue withholding the Holdback Amount in trust beyond the Remittance Deadline, until otherwise instructed by CRA. Once CRA has advised both parties of the amount of tax payable, the tax can then be paid from the Holdback Amount, and upon the issuance of a Certificate of Compliance, the balance of the funds can then be released to the seller. Accordingly, by applying for a Certificate of Compliance well in advance of the closing date and requesting a comfort letter, the seller may be able to avoid a situation where the entire Holdback Amount is remitted to CRA by the buyer, and avoid having to wait until the seller’s tax returns are filed in order to reconcile this amount with the tax payable as a result of the sale. Buyer’s Liability and “Reasonable Inquiry” into the Seller’s Residence Status If the buyer could have or should have known that the seller is a non-resident, or did not take reasonable steps to investigate the seller’s residence status, the buyer may be liable under section 116. The buyer will not be liable, however, if, after making reasonable inquiry, the buyer had no reason to believe that the non-resident person was not resident in Canada. In a typical purchase and sale transaction, a buyer relies on a statutory declaration made by the seller that the seller is not a non-resident of Canada for the purposes of section 116 of the ITA. In certain circumstances, this declaration may not be available, making it challenging for the buyer to ensure that they are not exposed to liability under section 116. Where a property is being sold by a mortgagee under the power of sale, for example, the registered owner of the property is generally not involved or is uncooperative, and the mortgagee will likely not make any representations or warranties in the agreement of purchase and sale with respect to residency. It is then up to the buyer to make ‘reasonable inquiry’ of the seller’s residence status. What constitutes ‘reasonable inquiry’ is highly circumstantial. In Kau v The Queen, 2018 TCC 156, the buyer of a condominium unit in Toronto was held liable for over $90,000 of tax under section 116 after the Tax Court of Canada determined that he failed to make reasonable inquiry as to whether the seller, who lived primarily in California, was a non-resident. This was despite the fact that the buyer’s lawyer had received a signed but unsworn statement from the seller, in which the seller stated that he was “not a non-resident of Canada within the meaning of section 116 of the Income Tax Act (Canada) and nor will [he] be a non-resident of Canada at the time of closing.” The Court held that this unsworn statement was insufficient to satisfy the purchaser’s obligation to make a reasonable inquiry. The court further held that what is reasonable will be fact-specific. In Kau, the purchaser was aware that the seller owned the unit as an investment property and should have noticed that the seller had an address for service in California. Therefore, in those circumstances, the purchaser should have required more than an unsworn statement to confirm that the seller was not a non-resident. The court noted that the outcome would likely have been different had the seller made such a statement in a solemn declaration or under oath. When the residence status of the seller is unclear, and no assurances are provided by or on behalf of the seller, a prudent buyer may try to err on the side of caution by withholding 25% of the purchase price and remitting the funds to CRA. However, section 116 only entitles the buyer to withhold funds if the seller is in fact a non-resident, and not simply because the buyer has not been able to confirm the seller’s residence status. In these circumstances, it is important for buyers to seek legal advice to ensure that their obligations under section 116 are adequately addressed prior to entering into a binding Agreement of Purchase and Sale. There are some exceptions to the above, and how section 116 of the ITA applies will vary depending on the type of property being disposed of and the circumstances surrounding the transaction. The buyer and seller should consult with their respective lawyers regarding their particular transaction. “This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please contact a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real Estate, TaxNovember 27, 2020March 20, 2024
Questions Your Landlord Should Not Ask You As a tenant you have rights including the right to privacy and the right to notice upon a landlord’s entry into your premise. As a renter, you should be aware that there are questions that a landlord simply cannot ask you, be it once you have occupied the property or in the stages of completing a rental application. Nationality – A landlord cannot discriminate against you based on your nationality, citizenship or anything related to your ethnic background. This question should never be asked. Sexual Orientation – A landlord cannot ask you if you are straight, gay, lesbian, queer bisexual, etc., and they cannot deny you a rental unit based on your gender identity or orientation. Religion – A landlord cannot ask you about your religious affiliation or if you are religious in general. Public Assistance – While a landlord has the right to know if you are employed, they do not have the right to know where all of your money comes from. If you are employed but on public assistance for example, your landlord cannot treat you differently or deny you the unit. Family Status – Though a landlord has the right to ask you how many people will be living in the unit, they cannot ask if you are pregnant or plan to have children in the future. In that same vein, landlords cannot turn applicants away based on their relationship status. Age – Landlords also cannot discriminate against a renter or applicant based on age. This includes people who are 16 or 17 years old and no longer living with their parents. However, note that a landlord is entitled to verify that an applicant is of age to enter into a legally binding contract. For the purposes of housing, age is defined under the Ontario Human Rights Code as 16 years of age or older as long as the applicant has withdrawn from parental control. Physical Disability – A landlord cannot ask you if you have a physical disability. Such disabilities are protected under human rights legislation and can be viewed as a form of discrimination. Mental Disability – Much like a physical disability, a landlord cannot ask you if you have a prior or current mental disability. Such disabilities are also protected under human rights legislation and can be viewed as a form of discrimination. Notice – As mentioned above, landlords must give proper notice before entering the premise. This question cannot merely be asked at the time of entry but must rather be obtained withing 24-hours minimum of the desired entry time. Repairs – Your landlord is responsible for maintaining the appliances in your rental unit. They are not allowed to ask you to make the repairs yourself. Arrest – A landlord may be able to ask you if you have ever been convicted of a crime, but a conviction is much different that an arrest. If you have been arrested in the past but not convicted, there is no obligation to disclose, and the landlord should be refraining from such questions. Pets – Ontario’s Residential Tenancies Act does not permit landlords to include “no pet” clauses in rental agreements and landlords should usually refrain from asking a renter or applicant if they have pets. The only exception is if the rental property is a condominium and the condominium corporation’s declaration, by-laws or rules prohibits pets. Smoking – The Residential Tenancies Act does not address matters relating to individuals before they become tenants, so if a landlord refused to rent to a person on the basis of smoking or insists on a “no smoking” clause, an applicant has no recourse and can be refused tenancy. However, while a landlord may refuse an applicant for smoking, a landlord is not able to amend an existing lease to add such a provision, or legally evict someone once they become a tenant merely because they committed the specific act of smoking in violation of a “no smoking” clause in the rental agreement. If a landlord wants to evict someone for smoking, they have to prove more than just the act. The key to evicting someone for smoking is if the smoke damages the property or infringes on the rights of other tenants. If you have been asked any of the following, your rights under the Residential Tenancies Act may have been violated and you may have standing to bring an application before the Landlord and Tenant Board of Ontario. Contact Robert Adourian at Devry Smith Frank LLP to have your rights assessed and protected. By Fauzan SiddiquiBlog, Real EstateApril 22, 2020September 30, 2020
5 Tips to Keep in Mind When Buying your First Home or Condo Congratulations, you have decided to purchase your first home. Although this milestone can be very exciting, the home-buying process can also be a daunting experience. Mapping out the journey beforehand can help a great deal. It is essential that you retain a lawyer who specializes in real estate and who can guide you throughout the process. You Will Need To Pay Closing Costs Remember, upon the closing of your property, a buyer is required to pay certain closing costs. You must be able to access sufficient funds to pay these closing costs. Closing costs include: Legal fees and disbursements; Land Transfer Tax (Municipal and Provincial Land Transfer Tax); Title Insurance; Property and Fire Insurance; Home inspection costs; Appraisals; Interest adjustments; and Other adjustment costs. Mortgage Pre-Approval If you intend to fund your new purchase with a loan from a mortgage lender, ensure you obtain preapproval before or during the home-buying process. An agreement of purchase and sale can be conditional on a buyer obtaining satisfactory mortgage funds to complete the transaction. Failure to pay the purchase price on closing can result in the vendor terminating the transaction, seeking forfeiture of the deposit monies and commencing an action for damages suffered. You May Be Eligible for The First-Time Hom Buyer Incentive The First-Time Home Buyer Incentive enables first-time home buyers the opportunity to reduce their monthly mortgage payments without increasing their deposit. You must meet the following criteria to qualify: must meet the minimum down payment requirements; your income cannot be more than $120,000 your total borrowing is limited to four times the qualifying income If You Are a Non-Resident of Canada, Don’t Forget the Non-Resident Speculation Tax Non-residents of Canada who purchase property are subject to a 15% Non-Resident Speculation Tax (“NRST”) on the purchase of a residential property if they live in the Greater Golden Horseshoe Region. This includes the City of Toronto, York Region, and Peel Region, in addition to other regions in Ontario. There are exceptions for some non-residents, where they would be exempt from paying the NRST. If the non-resident is not eligible for an exemption to the NRST, there are also rebates for which some non-residents can apply. However, obtain legal advice first to ensure you are staying compliant. Find a Real Estate Lawyer That You Trust to Decrease the Risk of Potential Problems Retaining the services of a real estate lawyer will help reduce the risk of potential problems on closing. Among other things, a real estate lawyer will clarify your obligations as expressed in the agreement of purchase and sale, search title to the property for any unwanted encumbrances and explain the contents of all documentation to be signed on closing. Ultimately, lawyers who specialize in real estate can offer you peace of mind during the home-buying process. If you would like more information or legal advice regarding the home-buying process, please contact real estate lawyer, Louis Gasbarre at 416-446-3318 or louis.gasbarre@devrylaw.ca. “This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateMarch 11, 2020June 17, 2024
The Home Inspectors Act to Provide more Protection for Homebuyers The weather is cooling down but the Toronto housing market saw double digit growth this past month. During the frenzy of home buying, due diligence is necessary and hiring the right home inspector could be forgotten from the long list of to-dos. This can be a costly mistake as a negligently conducted home inspection could cost the buyer thousands of dollars in unexpected repairs. The Ontario Association of Home Inspectors does regulate its approximate 500 members, however membership is voluntary. In total, there are approximately 1500 home inspectors in Ontario; however anyone can call themselves a home inspector and buyers could rely on them to make the biggest financial purchase of their lives. Ontario has recently passed the Home Inspection Act, 2017 (the “Act”) to regulate home inspectors and is predicted to come into force in 2020 after the regulations have been drafted and proclaimed. The Act will create minimum standards when it comes to the licensing and regulation of home inspectors in Ontario. Once in effect, individuals cannot conduct home inspections without a registered license and liability insurance. Requirements will include education, training and adherence to a code of ethics. Formal contracts with the buyer or seller will also be required prior to conducting a home inspection. And once the inspection is concluded, a report must also be provided. The Act also provides a complaints and disciplinary mechanism so that clients can report a negligent licensee. The registrar will have the authority to mediate in order to resolve complaints, provide written warnings, require licensees to take further educational courses or refer the matter to a discipline committee. Once at the discipline committee stage, the licensing body will have further powers to impose a maximum fine of $25,000 if a licensee has failed to comply with the code of ethics. As a home buyer, once you have the building inspector’s report, it is advisable to bring it to a real estate lawyer for review. If there is a leaky basement, there are a number of different courses of action that can be taken. You can insist that the repairs be made before closing, negotiate an abatement, prepare a repair fund in advance, or move on to the next home. If you would like more information on how to protect yourself as a home purchaser, please contact our real estate department by calling 416-446-1400 or emailing info@devrylaw.ca. This blog is co-written by our former articling student, Janet Son. “This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateSeptember 27, 2019August 14, 2024
Does Every Home Purchase and Sale in Ontario Require a Lawyer? Parties to a real estate Agreement of Purchase and Sale occasionally ask whether they actually need a lawyer to close the deal. The answer to that question is a resounding yes. Historically, closing a real estate transaction in Ontario would involve lawyers attending at a Land Registry Office (LRO) to conduct title searches. On the day of completion, lawyers from both parties would meet at the LRO to exchange documents and keys and register the transfer. Today, with electronic registration, everything from title searches to transfers of land are completed with specialized software. Only lawyers and law firms can gain access to this software, and the switch to electronic registration does not remove the requirement that a lawyer must sign the transfer of land. When choosing a lawyer to help you complete your real estate transaction, it is important to find a lawyer experienced with real estate. Experienced real estate lawyers will understand where complications with home sales tend to arise, and will make sure that their clients’ interests are protected. Having an experienced real estate lawyer review an Agreement of Purchase and sale before it becomes firm is also a good idea, as a lawyer will often catch potential issues that a layperson will miss. In a standard resale agreement you should consider including a clause that the agreement is subject to your lawyer’s review, and for a pre-construction condo you should have your lawyer review the contract within the statutory ten-day cooling off period. Devry Smith Frank LLP has a dedicated real estate department, combining years of experience in real estate law to ensure that your next real estate deal goes smoothly. For further information or assistance please contact our real estate department by calling 416-449-1400 or by emailing info@devrylaw.ca. “This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateJuly 2, 2019October 30, 2024
Buying a Condo? Make Sure You Review the Status Certificate Before Making a Firm Offer The past decade has seen a considerable increase in the number of condominium developments in Southern Ontario. As the population continues to grow, condos are a great way to efficiently use scarce land in major cities. The price point of condos is often much lower than that of detached homes, which makes them a popular choice among first-time homebuyers. Condos have also become common among more experienced homebuyers who are looking to downsize or perhaps are spending more time abroad and prefer the added security and included maintenance of a condominium. Many buying a condo for the first time may question if the buying process and condo ownership is different from that of a detached home. The answer to that is yes, and there are a few items in particular that a condo buyer should be aware of. In today’s post we will focus on the importance of reviewing a condo’s status certificate.As per the Condominium Act, 1998, SO 1998 c. 19, when a condominium development is registered in Ontario, a special type of corporation is created – one without share capital. The objects of the corporation are to manage the property and assets of the corporation on behalf of the unit owners. The unit owners elect a board of directors, which is responsible for making the decisions of the corporation. The board’s authority ranges from making decisions on capital upgrades and financial expenditures to the creation or amendment of the rules that the unit owners must follow.As a unit owner, you own your particular unit, and have an interest in the property’s common elements. Therefore, you share an interest in the assets and liabilities of the corporation. Before buying a condo, it is important to make yourself aware of the financial standing of the condo corporation and whether or not any legal action is pending against the corporation. You can find this information on your condominium’s status certificate. In addition to providing you with information on whether there are any outstanding common expense fees owing on a particular unit, a status certificate will provide information on the corporation’s reserve fund, whether the corporation expects any upcoming special assessments or increases in common expenses, whether there are any outstanding judgments against the corporation and provides a copy of the current rules and bylaws of the corporation that all unit owners must comply with.A condo corporation must provide a status certificate within 10 days of one being ordered. If it fails to provide the certificate then it is deemed that there is no default in common expenses by the current unit owner, that there is no planned increase in common expenses and that there are no planned special assessments. The corporation can charge a prescribed fee of $100 for ordering a status certificate. As a general rule, you should never make a firm offer on a condominium without you or your lawyer first reviewing the condo’s status certificate. A typical agreement for the purchase of a condo contains a provision that the offer is conditional upon the review of the status certificate by the buyer’s lawyer.If you have any questions about status certificates and why you need one when buying a condo, please contact Robert Adourian at 416-446-3303 or Robert.adourian@devrylaw.ca“This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateJune 27, 2019December 17, 2020
I’m Preparing To Close On My Residential Mortgage. What Identification Will I Need? Buying a home is possibly one of the most significant and costly purchases in one’s lifetime. Finding that picture–perfect home and probably feeling, to some extent, a little overwhelmed is common. However, getting to the stage of closing and what to expect is often a thought that goes overlooked. A question to ask yourself is, how prepared are you for that day? After all, this is the time when you will legally commit to your mortgage loan. All the more reason for you to be prepared in advance, before the day approaches. That said, familiarity with your closing team, is also fundamental. There are a number of people you will encounter throughout the closing process and although closing methods may differ your team will likely consist of: Real estate agents representing both buyer and seller Your lawyer The seller’s lawyer A representative from your lender Lawyers and mortgage lenders are required to obtain identification documents from you, thus having the appropriate identification is an additional legal requirement for you to consider. When the time comes to sign your real estate documents, two forms of identification must be provided. One must be a government-issued photo I.D. such as an Ontario driver’s licence or a Canadian passport. The other piece can be a credit card or social insurance card. Your lawyer will document the details from the required I.D., as well as your occupation. If the need for review should arise, identity verification of the persons buying or selling property in Canada is easily obtained. At the same time, remember to take all the time you need and ask all the questions that are on your mind. Purchasing a home is a long-term financial commitment and essentially you want to ensure you are content with all aspects of the transaction. At Devry Smith Frank LLP, we are well-equipped to handle a vast range of matters pertaining to real estate and property transactions. We aim to provide promptness, precision and understanding to all our clients, engaging with you from the beginning stages of your purchasing journey to the closing of your dream property. Communicating any vague or unclear legal terminology encountered along the way, in simple terms. Our aim is to make the course of your property buying experience a stress-free process. Contact Robert Adourian, of Devry Smith Frank LLP, for experienced assistance with both commercial and residential real estate by emailing robert.adourian@devrylaw.ca or by calling 416-446-3303. “This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateJanuary 18, 2019December 4, 2024
Identification Requirements for Real Estate Transactions An important part of preparing for a real estate transaction is making sure that you have sufficient identification documents to satisfy the requirements of your realtor, lawyer and mortgage lender. Each of these professionals will require that you provide documents to verify your identity. The usual requirement is two pieces of valid and unexpired identification documents, one of which must be photo identification. Examples of acceptable photo identification are an Ontario drivers licence, an Ontario Identification Card, or a Canadian Passport. The second piece of ID could be one of the foregoing, a Canadian Social Insurance Card or a credit card issued by a major Canadian financial institution. Your lawyer will document the details from the required I.D, and will also make note of your occupation and the name, address and telephone number of your employer The Non-Resident Speculation Tax imposes a 15% tax on the purchase or acquisition of an interest in residential real estate by non-residents of Canada in the Greater Golden Horseshoe Region (GGH). This includes the following geographic areas: City of Barrie County of Brant City of Brantford County of Dufferin Regional Municipality of Durham City of Guelph Haldimand County Regional Municipality of Halton City of Hamilton City of Kawartha Lakes Regional Municipality of Niagara County of Northumberland City of Orillia Regional Municipality of Peel City of Peterborough County of Peterborough County of Simcoe City of Toronto Regional Municipality of Waterloo County of Wellington, and Regional Municipality of York. In order to be exempt from this tax individuals must provide evidence that they are Canadian citizens or Permanent Residents of Canada. Your lawyer will require that you sign a sworn declaration to this effect, and you may also be required to provide proof of your status in the form of a Canadian passport, Canadian citizenship card or Permanent Resident Card. Prior to entering into a contract to buy or refinance real estate, you should consult with a lawyer and make sure that you have all the documentation required to satisfy the requirements of your realtor, lawyer and mortgage lender. At Devry Smith Frank LLP , we are well-equipped to handle your real estate transaction. We provide promptness, precision and understanding to all our clients, engaging with you from the beginning stages of your purchasing journey to the closing of your dream property. We pride ourselves on our ability to clarify vague or unclear legal terminology, and to communicate with our clients in clear and simple terms. For experienced assistance with both commercial and residential real estate, contact: Louis Gasbarre at 416-446-3318 or by email at louis.gasbarre@devrylaw.ca or Robert Adourian at 416-446-3303 or by email at robert.adourian@devrylaw.ca “This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateJanuary 18, 2019July 5, 2023
Rent Increase capped at 1.8% in 2018 By: Nicolas Di Nardo Under Ontario law, rent increases can not exceed 2.5 per cent. However, under the new housing reforms, the Liberal government extended their rent control to buildings since 1991 and landlords are required to apply to authorities if they are seeking to increase rent by more than 1.8 per cent next year. This will be done under what is known as The Rental Fairness Act, 2017. The Rental Fairness Act, 2017, will effect all privately-owned rental properties across the province, which is looking to help cities like Barrie from soaring rental prices. The Ontario Ministry of Housing has set the rate at 1.8 per cent, basing it on the provincial consumer price index, in the hopes of providing better housing to Ontarians. Barrie is in need of this cap. Based on data collected from PadMapper at the end of January, Barrie is the eighth most expensive city to rent in, when just three months prior it was sitting at 15th. It is now one of the most expensive cities in Canada to rent in. For example, recent rental rates have the average price of a two-bedroom unit sitting around $1,500 per month plus utilities. Renters are having trouble trying to find anything lower than that, even with a budget of $1,000 a month (inclusive), prospective renters are spending months searching for a place they can afford. With the new reforms in place, it will allow renters to afford to get into an apartment, and live there year after year, without the fear of rent being increased to an amount they will struggle to afford – it will be more predictable which can help renters get their finances in order. These protections come after a series of “unreasonable” rent increases and tenants being evicted from their units by their landlords. Landlords will now face a penalty if they evict tenants for personal reasons such as moving in a family member. Additionally, Premier Kathleen Wynne implemented this as part of their housing reforms in order to cool down the then-overheated housing market in April, when units built after 1991 were showing evidence of rent and sale price increases. There are exceptions to this cap. The cap does not apply to: Vacant units Social housing Nursing homes Commercial properties If a landlord makes improvements to their units, they have the option to apply to the Landlord and Tenant Board for increases (no more than 2.5 per cent). As a result, 250,000 tenants will be protected and 1.2 million private rental units will have to follow the new rent cap. If you are in need of a Barrie Real Estate lawyer, please visit our website and contact one of our Barrie Real Estate lawyers today. If you are in need of any other services or have any questions, you may also contact our Barrie office directly at 705-812-2100. “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateJune 27, 2017June 22, 2020
