Wednesday, December 13, 2017 20:43

Lawyer-Video2

Q. If a First Time Homebuyer has someone on title who is not a first time homebuyer how does the exemption apply in that case?

A. Good question. Because of finance reasons a lender will require a consignor be on title. What can be done is that consignor can be out on as a 1% owner and the first time homebuyer can be a 99% owner.  How that affects exemption is that you will be eligible for 99% of  the exemption. Same goes if you purchase with someone who previously owned a home you will be eligible for 50% of the exemption so that is $1000. Another situation to be made aware of is if you marry someone who already owns a home and you were living in that home as your matrimonial home. If you sell that home you are considered to not be a first time homebuyer as you were living somewhere as a matrimonial home and you will be subject to no exemption and have to pay the full land transfer tax.

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