According to article 191 of the Law on the Fair Value of the Residential Complex, if the contract does not result in a sale, the contracting authority may be taxable on the date of transfer of the property to a person for the purpose of its use as a place of residence. In this case, the GST rebate for new housing would not be available for the complex and a subsequent sale of the complex would generally be excluded. The Rent to Own program gives you the opportunity to still invest in the ownership of a house today and avoid the money mine of rent. This program will help you be more financially responsible, stay on track, and go through the steps necessary to build the equity and solvency needed to qualify for a mortgage. This is how it will work: if the agreement does not lead directly to the current or planned transfer of ownership of the property, the transaction is generally considered a lease, license or similar agreement and not a sale regarding the property. “I`m not a fan of most rent-to-own deals because you end up paying a premium,” he told Global News. Canadians thinking about a Rent-to-Own journey should do so with their eyes open, said Jason Heath, managing director at Objective Financial Partners, a paid financial planning firm based in Thornhill, Ont. If a rental agreement requires the landlord to sell the residential complex to the tenant during or at the end of the rental period and obliges the tenant to acquire it and all the conditions of sale are included in the contract, the transaction is considered a sale with deferred transfer of ownership. If the person exercises the possibility of buying the complex back from the contracting authority at the end of the initial lease period, is this redemption a taxable benefit? An individual enters into an agreement with a developer to take possession of a new residential complex with a unit for a period of one year as the person`s place of residence. The person must make monthly payments of US$1,000 year-round.
The agreement also contains an option to purchase the complex for an amount of $US 150,000 which can be exercised at any time within one year after the individual`s occupation. In addition, it is agreed that, in the exercise of the option, the sum of the first payments will be applied to the purchase price of 150,000 USD. .