Information sources that can be used to determine whether the property qualifies as “new” under the Newly Built Home Exemption include, but are not limited to:
If a transferee claims the newly built home exemption when they register a taxable transaction, but the property is not a qualifying property, the transferee becomes liable for the amount of property transfer tax that would have been payable at the date of registration, had the exemption not been claimed. The tax payable is due immediately in order to avoid additional interest accruing on the account.
There is no penalty for claiming the exemption; however, once the transferee is aware their transfer does not qualify for the exemption or they are sent a Notice of Assessment, the tax is payable immediately.
As long as the exemption qualifications are met in full, a transferee can claim this exemption as many times as it is applicable.
If the transferee qualified for the exemption at the time of registration of the taxable transaction but didn't apply when they registered the taxable transaction at the land title office, they may apply for a refund (PDF, 240KB) after the first anniversary of the registration date and on or before 18 months from the registration date.
If the transferee does not qualify because they are not a Canadian citizen or permanent resident, but they become one within 12 months of when the property is registered, they may apply for a refund (PDF, 240KB) after the first anniversary of the registration date and on or before 18 months from the registration date.
If the transferee registered a vacant lot and paid the tax, they may apply for a refund of the tax paid if they meet all the Newly Built Home Exemption qualifications within the first year from the registration of the taxable transaction. They may apply for a refund (PDF, 240KB) after the first anniversary of the registration date and on or before 18 months from the registration date.
The Newly Built Home Exemption is in effect for all the registrations of title on and after February 17, 2016. The exemption does not apply retroactively.
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A transferee can cancel an application for a FTHB and apply for a newly built home exemption if they meet all of the qualifications for the newly built home exemption. The cancellation and the application for a credit must be done no later than within 18 months from the date of registration.
A transferee who is not a FTHB but claims a FTHB exemption is liable for the penalty, even if they cancel the application and apply for a new housing credit under the newly built home exemption.
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A transferee can cancel an application for a newly built home exemption and apply for a FTHB credit if they meet all of the qualifications for the FTHB program. The cancellation and the application for a credit must be done no later than within 18 months from the date of registration.
A transferee who is not a FTHB but claims a FTHB credit, is liable for a penalty, even if they only apply for a credit.