UDI Response: Real estate contracts signed prior to August 2nd should be exempt from new 15% additional Property Transfer Tax

Yesterday the Provincial Government announced of a large tax on foreign buyers of residential real estate While we understand why the government has decided to take this approach, we do have concerns about unintended consequences.

The industry’s main concerns with the tax are regarding pre-sale contracts that are currently in place. In the home building industry, deposits and contracts to purchase are agreed upon months and years in advance of the closing dates and land transfers. These contracts are based in good faith on full disclosure of costs and tax structures at that time. To unilaterally apply this new 15% tax will directly penalize those who purchased in pre-sales and will take possession thereafter.

Contracts that are signed prior to August 2nd should be honoured and grandfathered in by the government. We are urging the government to make this simple legislative amendment before implementing the additional PTT tax.

Note: UDI President & CEO Anne McMullin is available for interviews.

Media Contact: Communications Manager Gavin Duffus gduffus@udi.org or 604-661-3033