Hi! again.

I have sent the queries to Bob Aaron for his reply.

Aaron is a well known real estate lawyer and I hope that he will clarify both the points, Hiren's and mine (riddle).

I will get back, only if he takes out his valuable time and sends me his reply.

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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/

Thank you Amit for doing all those calculations. I too had sent your calculations to Bob Aaron when you posted them 2 nights ago but haven't heard from him yet. I am sure he will respond (as he usually does to the questions from Realtors).

Whatever be the correct figue, the main point is that New Home Builder could be unscrouplous and may want to take away the rebate that justifiably belongs to you and that before you sign any amendments proposed by your builder to a purchase contract done earlier than the date of announcement of GST rebate, read it thoroughly and get your lawyer's approval.

In response to Hiren's question whether the builder has the right to take away the house, Amit's advice to you is very appropriate since we are not law professionals. However, you can learn more about the circumstances under which the Builder may UNILATERALY cancel the contract here: http://www.tarion.com/HOME/New+Home+Buyers/Understanding+Delayed+Closings+and+Occupencies/DelayedClosingProtectionforFreeholdHomes.htm
QUOTE
Termination

If the closing date in your purchase agreement is delayed beyond a total of 120 days, you have the right to terminate the purchase agreement between day 121 and day 130. For example, if your original closing date is January 1, 2004, it can be extended until April 30, 2004. If the purchase is not completed by then, you would have from May 1 to May 10, 2004 to terminate the agreement.

If you don’t terminate the agreement by day 130 (May 10 in the example), the builder is entitled to additional delays of up to 120 days total.

If the further 120 days expire (on September 7, 2004 in the example) without the purchase being completed and you cannot agree with your builder to a new closing date, under the terms of your purchase agreement the agreement may automatically terminate and, if so, the builder must return your deposit with interest.

Please note, if you sign an agreement to amend or change your closing date, this may affect your right to compensation and you may face fresh delays as described on this page.

If you are unsure about your rights regarding delayed closing, you may wish to seek the advice of a lawyer.

UNQUOTE

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Rajeev Narula, Broker, REALTOR®
ACE TEAM REALTY INC., Brokerage
10 Kingsbridge Garden Circle, Suite 704
(Opp Square One - HWY10/403)
Mississauga, ON L5R 3K6
Bus: 1-888-355-3155 Ext. 300
Fax: 1-888-443-3155
Email:
Web: http://www.RAJEEV.ca" rel="nofollow">LINK

One real estate lawyer has replied to my email.

Who gets the GST rebate, the builder or the buyer?

Quote

This all depends on how the agreement is worded. When the GST was reduced from 7% to 6% no one knew that this was coming. The owner received the GST reduction because his purchase price was based on the 7% GST.

Now the builders are aware that the GST will be reduced. Some contracts state that if the GST is reduced then the reduction goes to the builder without the price being reduced. You have to read the contract. If it is silent then I expect that the new owner will be able to make the application as before.

Unquote

MY TIP: New builder home buyers should do their due deligence within 10 days cooling off period by consulting a real estate lawyer before firming up their home purchase. That is a good time to sort out issues etc. before getting into disputes later.

Regards,

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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/

The GST topic is hot amongst new home/condo buyers these days. Today, there is some more news/ clarifications in The Toronto Star (dated Nov 17, 2007).

As per the aricle, the GST housing rebate is almost always assigned to the builder by the home buyer.

However, the GST transitional rebate is home buyer's right. After closing transaction the home buyer or his lawyer files CRA's GST Form 193 to receive this rebate.

Here is the form:
http://www.cra-arc.gc.ca/E/pbg/gf/gst193/gst193-07e.pdf


Cheat sheet: http://www.bildgta.ca/BILD/uploadedFiles/Members_Only/News_and_Publications/Other_Member_News/calculating.pdf


Regards,

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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/