NEWS FOR LANDLORDS
This site is to inform you of important issues relating to to
your ownership and management of residential rental property. Members of WRAMA
or FRPO receive further information and money
saving solutions. Join today.
Residential Tenancies Act Seminar - FRPO - May 2nd,
Register for the CFAA Conference in Toronto - June 2013
Hoarding Presentation by K.A. Ley, Cohen Highley LLP
(presented at October 2012 WRAMA meeting)
Sign Up for CMHC Newsletters for Market Research Updates
Increase in the Number
of Legionella-related Illnesses in Ontario - Apartment Manager Recommendations
2013 Rent Guideline 2.5% - FRPO Bulletin
Guelph Shared Rental Housing and Rental Housing Licensing
FRPO Message to Members Regarding Rent Control on
Buildings Built After 1991
Waterloo Rental Housing By-Law 2011-047,
application and forms, and contact
City of Kitchener to review possibility of
licensing of rental housing
City of Kitchener Has New Rules for Fire Inspections on Sale and Refinancing
Joe Hoffer Rent Control Bulletin - "Big Issues for Small Landlords" -
"Contracting Out" Snow Removal and Lawn Maintenance, and Apportioning
NEW LTB form for Separately Metered Units -
mandatory Jan 1, 2011
Suite Metering Update from FRPO
RTA Changes to Suite Metering effective Jan 1,
2011 - Some New Rules Apply to ALL Separately Metered Tenancies
Responsibility for Tenants Water Bills - Cambridge Times News
Landlord Tenant Board Update - new Social Justice
- How It Affects 12 Matters In Ontario Real Estate
CMHC Mortgage Insurance for New and Resale Student Rental Housing
- Landlord Tenant Board Update - Changes to Form N4
rights in housing – an overview for landlords
Asbestos Notice to Tenants required as of November 1, 2007
Residential Tenancy Act - January
Beware of Rental Scam
WRAMA Free Apartment Listing Site Links
Residential Tenancies Act Seminar - FRPO - May 2nd,
May 2nd Quality Hotel & Suites, Woodstock
8:00am - 12:15pm
Includes Full Breakfast
FRPO knows the challenges that landlords face in trying to run their business.
In addition to staying competitive and providing quality housing to your
tenants, landlords and property managers must deal with a complicated framework
which governs residential tenancies. Since last year, the government changed the
rent control provisions in the RTA, while the LTB amended several rules and
guidelines. FRPO's legal experts will bring you up to date so that you can save
time and money dealing with tenancy disputes today.
Best practices for screening and reviewing tenant applications
When tenants refuse entry/properly serving notice of entry
Properly handling extra charges for air conditioners, parking & other services
Review of all notice periods and time limits on eviction notices and
How to speed up your rent dispute application
What you can and can't do about smoking and pets
The right way to proceed with cases of damage, disturbance and illegal activity
$99.99 plus HST
of a FRPO recognized Regional Association $149.99 plus HST
$199.99 plus HST
Space is limited,
reserve your spot now at
CFAA Conference - Toronto June 2013
Rental Housing Conference
June 11-13 at the
Westin Prince Hotel in Toronto, Ontario
June 11 – Building Innovations Bus Tour
June 12 – Investment Conference
June 12 – Hockey Hall of Fame Supper and Reception
June 13 – Rental Operations Conference
For online registration please go to:
Click here to
download pdf presentation
on Hoarding, by K.A. Ley, Cohen Highley LLP
Are you interested in
Canada Mortgage and Housing Corporation's (CMHC) Housing
Research e-newsletter can help you stay up-to-date with the
latest housing research findings and events related to
sustainable housing and communities, housing conditions and
trends, housing finance and more.
in the Number of Legionella-related Illnesses in Ontario
Dear Apartment/Condo Managers and Mall Managers,
Over the summer months, there has been an increase in the number of Legionella-related
illnesses in Ontario. This trend has been reflected in Waterloo Region. At
the request of Ontario’s Chief Medical Officer of Health, we are writing you
to provide you with information on how you can help prevent Legionella
bacteria’s transmission through the maintenance of water systems (including
Legionella is a bacteria found naturally in the environment that can lead to
lung infection and serious illness. People usually acquire the illness by
breathing in contaminated water droplets or mist from aerosol-producing devices.
Thus, improperly maintained water systems such as atmospheric cooling towers,
hot water systems and showers, and spas such as hydro-massage tubs may
contribute to the spread of Legionella bacteria.
maintenance in accordance with industry standards can prevent outbreaks.
We thus recommend that you:
this general information with respect to watery system maintenance,
including cooling towers:
· Follow equipment manufacturer maintenance instructions with regard to
the operation of atmospheric cooling towers, hot water systems, and
· Use precaution when shutting down to ensure safeguards are in place
· Ensure proper cleaning of the apparatus prior to re-start
· Respond to adverse situations such as changes in the functioning of
the apparatus and external influences (e.g., nearby construction and high dust
occurrences with cooling towers)
these resources’ additional guidance on how to prevent the spread of
The Cooling Technology Institute’s Legionellosis Guidelines: Best Practices
for Control of Legionella (http://www.cti.org/cgi-bin/download.pl)
· ASHRAE Guideline 12-2000: Minimizing the Risk of Legionellosis
Associated with Building Water Systems (http://www.spxcooling.com/pdf/guide12.pdf)
for more information on Legionnaire’s disease. If you have any questions about
this letter, you may contact Brenda Miller, Manager of Infection Control at
Region of Waterloo Public Health (email@example.com,
519-883-2379). We appreciate your cooperation in keeping Ontarians safe - safety
is a partnership involving many people and we hope that we can count on your
assistance in the prevention of Legionella outbreaks.
Dr. Hsiu-Li Wang
Associate Medical Officer of Health, Region of Waterloo Public Health
2013 Rent Guideline is 2.5% - FRPO
The government has announced that the rent control guideline for 2013 will be
2.5%, down from the 2012 guideline of 3.1%. The 2013 guideline applies to rent
increases between January 1 and December 31, 2013.
The McGuinty government passed legislation on June 13, 2012 to amend the
Residential Tenancies Act, 2006 to ensure that the Rent Increase Guideline is
capped at 2.5 per cent. Without the cap, the guideline would have been 2.6 per
cent in 2013.
The guideline does not apply to vacant residential units or residential units
first occupied on or after November 1, 1991.
The new guideline will also mean:
· There will be a change to the threshold for what qualifies for an
extraordinary operating cost increase in 2013. According to the regulations, “an
increase in the cost of municipal taxes and charges or utilities is
extraordinary if it is greater than the guideline plus 50 percent of the
guideline”. That means that the threshold for extraordinary operating costs will
be 3.75% for 2013.
· The interest rate on last month’s rent deposits also changes in accordance
with the Residential Tenancies Act which requires interest to be paid to the
tenant annually at a rate equal to the guideline. The interest rate on last
month’s rent (LMR) deposits for 2013 will be 2.5%. Note that landlords will be
able to use the interest earned on a last month’s rent deposit to top up the
tenant’s last month’s rent deposit, as required, to keep this deposit up-to-date
with the current monthly rent.
Increasing Your Rent by the Guideline
The rent for a unit can be increased up to the guideline limit if at least 12
months have passed since a tenant first moved in, or if at least 12 months have
passed since the last rent increase.
A tenant must be given proper written notice of a rent increase at least 90 days
before the rent increase takes effect. The written notice should be on the N1
Form, “Notice of Rent increase”, available from the Landlord Tenant Board
website, www.ltb.gov.on.ca, under the section “Notices of Rent Increases”. There
is no requirement for approval by the Landlord Tenant Board.
If you require a copy of the N1 Form to be faxed or emailed to you, please email
FRPO’s Manager of Policy, Mike Chopowick, at firstname.lastname@example.org
Guelph Shared Rental Housing and Rental
Rental housing licensing process is proceeding in the City of Guelph.
Rental Housing Work Plan - May 22, 2012
FRPO Message to Members Regarding Rent Control on Buildings Built After 1991
As you know, any
building which was built after November
1, 1991 (or not occupied for residential purposes before that time) is exempt
from the rent control provisions of the RTA.
tenants are not aware that some rental units in the province are not covered by
rent controls. For this reason, FRPO recommends that those with post-1991
buildings notify prospective tenants that the unit is exempt from rent controls.
To help facilitate
this, FRPO has developed a form for members at no cost.
Please feel free to use this form for new applicants. Alternatively, you
can also adapt the wording to make up a new clause in your lease, with an
initial or check-off box for the tenant, if you find that administratively more
Many FRPO members
value the post-1991 exemption. It has been responsible for the creation of
thousands of rental units in the province. FRPO would like to ensure that this
benefit remains secure and reliable for investors in Ontario. As you may
recall, Ontario previously had a post-1975 exemption, which was taken away by
the Peterson government in 1985 as one of its first acts.
in Ontario have now made the elimination of the post-91 exemption a top
priority. As time passes, and as an increasing portion of Ontario’s rental stock
becomes exempt, tenant advocates can be expected to ramp up the political
pressure on this issue.
defends the policy on the important basis that it provides an incentive for new
rental development, and has been successful in creating new rental housing and
jobs. However, FRPO has found that one challenge in defending the policy is the
fact that many tenants are unaware of the exemption. Their surprise at a rent
increase above the guideline quickly turns into rage and calls for action from
politicians. This problem can be eliminated if incoming tenants get notified.
FRPO encourages all members with post-1991 buildings to meaningfully notify
incoming tenants of the exemption.
Please feel free
to contact me if you have any questions or require further clarification on the
above. Thank you. Vince.
Federation of Rental-housing Providers of Ontario
Road, Suite 105
416.385.1100 x 20
1.877.688.1960 x 20
City of Waterloo Rental Housing
Council of The City of Waterloo
approved a new Residential Rental Housing By-Law 2011-047 at the council meeting
on May 9, 2011. A copy of the Rental By-Law and
City Council minutes of the meeting are available on the City of Waterloo
website listed below.
Waterloo Rental Licensing Forms in Word Format (as of February 2012):
Waterloo Rental Housing Application
Maintenance Plan Requirements
For information regarding the new Residential Rental by-law approved by the City
of Waterloo, please contact:
In Person: By-Law Department, 1st Floor
City of Kitchener Residential Rental Licensing By-Law
On November 21, 2011 City of
Kitchener staff released an initial report regarding possible
Residential Rental Licensing by-law.
Kitchener Fire Inspection Changes
The Kitchener Fire Department will no longer be providing inspection services
for commercial purposes, effective January 1, 2011. The discontinued
inspections include the following:
1) Requests made by lawyers, real estate agents,
purchasers, vendors or owners for the purposes of real estate transactions;
2) Requests made by lawyers, financial institutions,
private lenders, insurance companies or building owners for the purposes of
mortgage approvals, insurance coverage, or private funding.
They suggest that Home Inspectors be used for fire inspections on houses,
townhouses, semi-detatched, and duplexes. They suggest architects or
engineers provide the inspection service for triplexes, apartment buildings,
high rises, commercial buildings etc.
File search services will still be provided by the Kitchener Fire Department,
however a File Search Request form must be completed and signed by the owner,
with all required documentation provided.
NEW LTB Form for Separate Electrical Metering -
effective January 1, 2011
for the form required by the Landlord and
Tenant Board for use in ALL cases where you are leasing to a
prospective residential tenant and where the rental unit has a
separate electrical meter and where the tenant will be billed
separately for electricity.
legislation takes effect January 1 and the use of the Forms,
from that time forward, is mandatory.
FRPO BULLETIN - Suite
Metering Update - December 23, 2010
With the new
Energy Consumer Protection Act taking
effect on January 1, 2011, FRPO has been getting two main
questions. This bulletin speaks to the two most common
questions we are getting: 1) utilities not providing
information; and 2) availability of LTB suite-meter forms.
It also informs members about new requirements related to
fridges in all suite-metered units. This information was
covered in much more detail in FRPO’s recent seminar and
Information for Prospective Tenants - Utilities Not
Providing Information As Required
January 1, all landlords who have units where the tenant
pays electricity (suite-meterd units) must provide
information to prospective tenants. In particular, the
landlord must provide “the most recent information available
to the landlord”… “concerning electricity consumption in the
rental unit”. An excerpt with this full new legislative
requirement is shown in a section below.
been told that some utilities will not provide this
information. Most of these utilities cite privacy
concerns. FRPO has brought problem this to the attention of
the Ministry of Energy, the Ontario Energy Board, and the
Ministry of Municipal Affairs and Housing. Since bringing
it to their attention, FRPO has been informed by all three
that it is the OEB’s responsibility to ensure that utilities
comply with the new law. The OEB told FRPO in November that
it was educating utilities across the province on their new
utilities are obligated to provide you with this information
within 10 days of a request. Below is an excerpt from
Ontario Regulation 389-10 outlining the legal obligation of
utilities in this respect.
utility will not provide you with this information, then you
are not obligated to provide any information to prospective
tenants. The legislation is quite clear: you are only
obligated to provide “the most recent information available to the landlord”. If it is not
available, you cannot provide it.
caution in trying to manufacture something in an attempt to
provide information: you may incur more liability by trying
to do this than by providing no information. It is the
government’s job to make sure that utilities comply with the
legislation. It is not the job of the rental housing
provider to try and suddenly pretend you are a utility.
Fridge Information for Prospective Tenants
Ontario regulation 394/10, “If the landlord provides a
refrigerator for the rental unit, the prospective tenant
must be given the best information that is available to the
landlord about the date of manufacture of the refrigerator
and any available information about the energy efficiency of
the refrigerator” [O. Reg. 394/10, s. 8 (3)]. This
requirement applies on January 1, 2011 to all rental
providers who have tenants who pay for their electricity.
Fridge Efficiency Requirements for all Suite-meterd Units
suite-metered units in the province face new energy
efficiently requirements. O. Reg 384/10 requires that
fridges built before 1994 in suite-metered units must be
replaced by January 1, 2013. Section 10 of the regulation
is shown below.
10. (1) The
rules set out in this section apply with respect to the
landlord’s duties under subsection 137 (9) of the Act
respecting electricity conservation and efficiency. O. Reg.
394/10, s. 10 (1).
(2) If the
landlord provides a refrigerator for a rental unit, the
refrigerator must be one that is manufactured on or after
January 1, 1994. O. Reg. 394/10, s. 10 (2).
(3) If the
landlord replaces a refrigerator in a rental unit, the
replacement refrigerator must be one that is manufactured on
or after December 31, 2002. O. Reg. 394/10, s. 10 (3).
(4) If, on
October 13, 2010, the tenant is being billed by the
distributor or suite meter provider for electricity use in a
rental unit, the rule set out in subsection (2) does not
apply with respect to the rental unit until two years after
the date on which subsection 137 (9) of the Act comes into
force. O. Reg. 394/10, s. 10 (4).
LTB Forms Available December 24, 2010
The Landlord and Tenant Board (LTB) has informed FRPO that forms
related to the new suite metering rules will be available on
their website on December 24th, 2010.
The expected forms include:
Information for prospective tenants form
consent form for suite-metering (for when you want to convert a
sitting tenant from bulk metering to suite metering
reduction schedules (for each of the different rent reduction
Notice to terminate the obligation to supply electricity
APPENDIXES TO THE BULLETIN
Residential Tenancies Act Section 137 (7): Information
Requirements for Prospective Tenants
under the prescribed circumstances, if a suite meter is
installed in respect of a rental unit, the landlord shall,
before entering into a tenancy agreement with a prospective
tenant for the unit, provide the prospective tenant with the
following information in the form approved by the Board:
The most recent information available to the landlord for
the prescribed period from the suite meter provider
concerning electricity consumption in the rental unit.
If the rental unit was vacant during any part of the period
to which the information referred to in paragraph 1 applies,
a statement of the period that the rental unit was vacant.
Such other information as is prescribed.
Ontario Regulation 389-10 Excerpt: Information provision
requirements for utilities (suite meter providers)
Information to be
41. (1) Within
10 days after receiving a request from a residential
landlord for any of the following, or within such other
period of time as may be required by a code or order issued
by the Board, a suite meter provider who provides suite
metering in respect of a rental unit in the landlord’s
residential complex shall provide the residential landlord
with such of the following information as it relates to the
rental unit as the landlord requests:
information for the suite meter provider.
2. For the
most recently completed 12-month period for which the
following information is available to the suite meter
the sum of all amounts charged, including applicable taxes
but net of any late payment and one-time set-up charges, on
all suite metering invoices for the rental unit for that
the total amount of electricity consumed in the rental unit
in kilowatt hours during that 12-month period,
iii. the sum of all amounts charged in respect of
just the commodity price of the electricity on all suite
metering invoices for the rental unit for that 12-month
Information about all fees and charges imposed on the
consumer in the rental unit by the suite meter provider.
4. In the
case of a unit sub-meter provider, information about the
circumstances in which the amount of fees and charges
imposed on the consumer in the rental unit by the unit
sub-meter provider may increase.
5. In the
case of a unit sub-meter provider, information about any
planned increases in the amount of fees or charges imposed
on the consumer in the rental unit by the unit sub-meter
6. In the
case of a unit smart meter provider, a statement that the
rates and other charges imposed on the consumer in the
rental unit by the unit smart meter provider and any changes
to these rates and charges are approved or fixed by the
7. The suite
meter provider’s security deposit policies applicable to the
consumer in the rental unit.
8. The suite
meter provider’s disconnection policies applicable to the
consumer in the rental unit. O. Reg. 389/10, s. 41 (1).
(2) A unit
sub-meter provider shall include with its first invoice to a
consumer, in a clearly legible typeface having a font size
of at least 12,
information about all applicable fees and charges imposed by
the unit sub-meter provider; or
information that there are regular recurring fees and
charges imposed by the unit sub-meter provider and the
address of the website on which detailed information about
the fees and charges may be obtained. O. Reg. 389/10,
s. 41 (2).
(3) A unit
sub-meter provider who provides suite metering in respect of
a unit in a multi-unit complex shall, in accordance with
subsection (4), notify a consumer,
(a) about all
changes in the fees or charges to be imposed on the consumer
in the unit by the unit sub-meter provider and provide
information on the amount of the fees and charges before the
change and after the change;
(b) about all
changes in the commodity price and provide information on
the commodity price charged before and after the change;
(c) about any
change in the person who sells electricity to the owner or
other person in charge of the multi-unit complex and
information on the current person who sells electricity and
the new person; and
(d) about the
date when a change referred to in clause (a), (b) or (c) is
scheduled to take effect. O. Reg. 389/10, s. 41 (3).
(4) Information required by subsection (3) to be provided
to a consumer must be printed in a clearly legible typeface
having a font size of at least 12 and included on the front
page of, or as a separate insert with, the first invoice
issued to the consumer following the earlier of,
announcement of the change; and
(b) the day
that the change takes effect. O. Reg. 389/10, s. 41 (4).
(5) A suite
meter provider who provides suite metering in respect of a
multi-unit complex shall provide such other information in
such form and manner to consumers or such other persons as
may be required in an order or code issued by the Board.
O. Reg. 389/10, s. 41 (5).
means the commodity price for electricity referred to in
section 2 of Ontario Regulation 275/04 (Information on
Invoices to Low-Volume Consumers of Electricity) made under
the Ontario Energy Board Act, 1998.
O. Reg. 389/10, s. 41 (6).
RTA Changes to Suite Metering effective Jan 1,
2011 - Some New Rules Apply to ALL Separately Metered Tenancies
Amendments to the RTA related to suite
meters will become law Jan 1. It has major affects to existing units where
tenants pay hydro. Go to
They will post details Jan 1, 2011.
Attend our Feb 9 Seminar where Joe Hoffer from Cohen Highley LLP will
discuss this important issue.
his Rent Control Bulletin on the recent RTA changes here.
WRAMA President speaks at Cambridge Water and Wastewater Billing Meeting
Recent changes to the water and wastewater services
and billing in Cambridge, put the landlord ultimately responsible for the
bill in the event the tenant does not pay their water bills. A special
meeting regarding water and waste water billing was held on
Monday November 22, 2010. WRAMA President Glenn Trachsel was one of
For Cambridge Times news coverage click here.
Landlord Tenant Board Update
Board to be clustered into new Social Justice Tribunal
In December 2009, the Adjudicative Tribunals Accountability, Governance and
Appointments Act 2009, received Royal Assent. The Act allows the government
to cluster tribunals and agencies with common stakeholders and related
issues in order to improve public services.
The clustering initiative is intended to promote the best use of resources
through cross-agency cooperation and coordination of operations and
administration. The government claims it will also enhance consistency in
tribunal practices, procedures and decision making.
In Spring of 2010, The Environment and Land Tribunals Ontario brought
together the Assessment Review Board, Board of Negotiation, Conservation
Review Board, Environmental Review Tribunal, and the Ontario Municipal Board
in the province’s first cluster.
Under Phase Two, the Social Justice Tribunals cluster will bring together
the Human Rights Tribunal, the Child and Family Services Review Board, the
Custody Review Board, the Social Benefits Tribunal/Social Assistance Review
Board, Special Education Tribunals (English and French) and the Landlord and
Business as Usual During Transition
FRPO has discussed this change with the Chair of the Landlord Tenant Board.
The Board is assuring that during the transition, there will be no changes
in procedure, and it will be “business as usual” for landlords, tenants and
There will be an opportunity for members of the public to
provide comments and suggestions about the implementation of this cluster.
The timing and type of consultations with the public will be determined by
the new Executive Chair of the Social Justice Tribunal.
Further updates will be provided as more information becomes available.
For more information, contact:
Mike Chopowick, Manager of Policy, 416-385-1100 x21
HST? - How It Affects 12 Matters In Ontario Real
Beginning July 1, 2010, there will be sales tax in
Ontario of 5% + 8% = 13% (12% in British Columbia)
the former 5% GST (Goods and Services Tax) and the
former 8% PST (Provincial Sales Tax).
1) HST and Mortgage Brokerage Fees (to
arrange a mortgage, if one uses a Mortgage Broker)
not apply since mortgage brokerage
services are exempt as part of the financial
2) HST on Real Estate Commissions
Generally, HST will be payable on commissions for
any real estate sale closed after July 1, 2010.
general transitional rule (for sale contracts
entered into before July 1, 2010), is if at
least 90% of the services
were performed prior to July 1, 2010, only 5% GST is
payable (no PST). If an offer to purchase
real estate was
accepted prior to July 1, 2010, then the
realtor services were performed prior to July
1, 2010, and only 5% GST
should be payable even though the realtor’s
commission is not due for payment until the sale has
closed after July
1, 2010. Warning to sellers: If,
July 1, 2010, a seller is about to accept an offer
to purchase (which will
close after July 1, 2010), the seller should
clarify in writing with the realtor that only
GST will be payable
on commissions due on a sale closing
July 1, 2010.
3) HST and Rents Paid by Tenants
For residential tenancies, HST will not apply
to such rents. For commercial tenancies (industrial,
office or retail), HST
will be charged on rents paid after July 1,
2010 (but most commercial tenants qualify to
recover such HST payments
through input tax credits).
4) HST and Condominium Monthly Maintenance
For residential condominiums, HST will
apply on monthly common expenses, but HST is
commercial (retail), office, industrial) condo
common expenses paid on or after July 1, 2010 (most
condo owners qualify to recover such HST payments
through input tax credits).
5) HST on HOME RENOVATIONS
For any part of services (labour and materials)
provided after July 1, 2010 (no matter when a
renovations of a residence was signed), the part
performed or provided after July 1, 2010, will be
subject to HST.
6) HST and RESALE COTTAGE / VACATION PROPERTY
HST will not be payable on the price if the
property sold by the seller and bought by the buyer
is personal use
property. However, if the seller had been renting
out the property more than 50% of the time during
ownership, the price will likely be subject to HST.
If the property being sold was part of a rental
pool, HST will
apply. Consult your tax accountant.
7) HST and RESALE RESIDENTIAL PROPERTY PURCHASES
There will be no HST on the price of resale
residential purchases. Note: Resale
residential purchases will
therefore become a much more attractive investment
(rather than buying from a builder) particularly
considers that builder prices will result in 13% HST
(whether built into the price or being structured in
addition to the price by some builders in Ontario).
Builder prices also must include higher
costs of labour, materials and land costs
as substantial municipal levies and educational
plus sizable closing adjustments (often being
hidden by builders in the fine print of many
pages in a builder’s
agreement), all of which are not payable by a
buyer / investor who purchases resale
(Think about it!)
8) HST on a PURCHASE OF A SUBSTANTIALLY RENOVATED
If a residence being purchased has been
“substantially renovated”, it will be treated in the
same manner as
buying new construction from a builder and HST will
generally apply to the price paid. See Canada
Agency (CRA) Bulletin B-092 which states that a
“substantial renovation”, in effect, refers to a
where at least 90% of the interior of a building
(excluding the foundation, external walls, internal
supporting walls, roof, floors and staircases) has
been removed or replaced.
9) HST and PURCHASE of RESALE APARTMENT BUILDINGS
No HST will be payable on the price of a
resale apartment building (multi-unit residential).
If part of such a building is
commercial, the purchase price must be reasonably
apportioned between the part of the building that is
residential resale (HST exempt) and the other part
of the building that has a commercial component,
which part will
be subject to HST.
10) HST on PURCHASE OF COMMERCIAL PROPERTIES (new or
resale commercial properties
closing after July 1, 2010 no matter when an offer
HST will apply to the purchase price;
however, typically, buyers who obtain a GST
registration prior to closing
(must be registered for GST in the same manner as
ownership will be taken) will not need to pay the
(a) a GST registration is obtained prior to the
(b) the buyer signs an appropriate undertaking
in the lawyer’s office to become self-assessed.
Note: Watch out for the purchase of office
condominiums, industrial condominiums, and retail
the price for which will be subject to HST
(being subject to only GST on the price for
closings prior to July 1, 2010).
11) HST and the PURCHASE OF VACANT LAND
HST will typically apply to the price of
such land if farm land is sold alone; however, if
the land is sold as part of
a farming business, it can be treated differently.
Consult your tax accountant.
(b) Building Lot
HST will typically apply to the price when the
seller is involved in a commercial real estate
some lot sale prices might be exempt from HST if the
seller is not engaged in a real estate commercial
(c) Personal Use Of Vacant Land
No HST is payable if an individual sells
personal use vacant land (which would have been
exempt from GST).
12) HST on PURCHASES OF NEWLY CONSTRUCTED
(a) Builder’s Agreement Prior to June 19,
No HST is payable if an offer to
purchase from a builder was accepted prior to June
19, 2009 (only GST will
apply; however, most builders include GST inside the
sale price). Note: Buying by way of an
assignment (where the
builder sale agreement was signed
June 19, 2009) becomes attractive!
(b) Builder’s Agreement Accepted after June
If an offer to purchase from a builder was accepted after
June 18, 2009 and either occupancy closing
(for a new
condo purchase) or final closing occurs
prior to July 1, 2010, HST is not
payable; HST is payable if both
occupancy (in a new condo purchase)
closing occur after July 1, 2010.
(c) If Builder’s Agreement Silent about HST
If an offer to purchase from a builder was accepted
after June 18, 2009 and failed to make
reference to HST, the
sale price includes Ontario’s 8% PST component of
the HST if it is payable (which means that the
pay the PST and cannot charge it to the buyer).
(d) GST Rebate (calculated on the 5% GST
part of the 13% HST)
Typically, most builders include the GST
component of HST (being 5%) in the sale price based
on the government
GST rebate being assigned from the buyer to the
builder (such GST rebate being 36% of the GST
payable on the
first $350,000.00 which is reduced to NIL as the
price increases from $350,000.00 to $450,000.00,
no GST rebate after $450,000.00).
Note: In order for the GST rebate to be
assigned to the builder by the buyer, the buyer must
qualify by the buyer
or an immediate family member living in the unit.
If not qualifying (such as an investor who will be
renting out the
unit), the rebate cannot be assigned to the builder
and the builder will charge the cost of such
unassignable rebate to
the buyer on closing in addition to the
purchase price, which results in the buyer being
forced to make a separate
application to the federal government to recover
such rebate. To qualify for recovery of such
rebate, the investor
must own the unit for at least one year and
reasonably expect to rent the unit to the initial
tenant for one year.
An investor need not wait the year to apply for and
obtain the rebate but if the government later
ownership was less than one year, the government
might seek to recover the rebate paid to the
(e) PST Rebate (calculated on the 8% PST
Component of the 13% HST)
Warning: All builder agreements should
be reviewed by a lawyer either before a buyer
signs an offer or during
any available cooling off period since some
builder agreements require buyers to pay the 8% PST
Net PST) component of the HST in addition to
the purchase price.
Regarding a PST rebate, only 75% of the 8%
PST component of the HST is refundable to a buyer on
the part of the purchase price that is up to
$400,000.00 (being newly constructed from a
builder since there is
no HST on resale residential
property). There is no government rebate on
the 8% PST for the part of
any price that exceeds $400,000.00! This
means that 75% of 8% (being 6%) is refundable by the
and 25% of 8% (being 2%) is not on the first
$400,000.00 of price.
Example: If the price from a builder is
$500,000.00, the gross 8% PST component of the HST
$40,000.00, but since the government offers a
rebate of 75% of the 8% PST on the first
will effectively (for a qualifying buyer whose
immediate family member will be living in the unit)
reduce the PST
to 2% on the first $400,000.00 to $8,000.00. Since
there is no PST rebate for that part of the price
$400,000.00, 8% is charged on the next $100,000.00
being a further $8,000.00 which means (for a
buyer who can assign the rebate to the builder) that
the total net PST payable is $16,000.00. If
the net PST is
not included in the price of $500,000.00, the price
plus net PST payable becomes $516,000.00.
The gross 8%
PST on $500,000.00 is $40.000.00 but (due to the
rebate of $24,000.00 on the first $400,000.00) the
PST payable is $16,000.00.
Note: If the builder’s agreement requires the
Net PST to be paid by the buyer, the buyer pays
$16,000.00 on top
of the price. If the builder’s agreement states
that the Net PST is included in the price (as GST is
typically with most
builders), the price remains $500,000.00.
Caution: An investor-buyer who will rent out
the unit will not qualify for assignment of
PST rebate to the builder
and, therefore, on closing, must pay the purchase
price of $500,000.00 plus the gross PST of
(being a total of $540,000.00) and then, after
closing apply to the government for the rebate of
to be received if the investor qualifies (must be
owning for one year and rent to a tenant who is
expected to live in the unit for one year, although
the rebate application can be made as soon as the
purchase from the builder is closed).
(f) Qualifying for a Rebate (GST or PST)
when Buying from a Builder
In order to qualify for GST or PST rebates, the
property purchased from a builder must be intended
to be a
primary place of residence, which means that if a
person has more than one residence in the world, (in
qualify for the rebate) the unit must be the
place of residence and not a secondary residence.
Also, the residence purchased must be used as
a primary place of residence (as stated above) by
the buyer or a
relation of the buyer. Relation of the buyer
includes an individual who is related by blood,
marriage, adoption or
common law (including a former spouse or a former
common law partner). Blood relation is limited to
siblings, children, grandchildren but does
include cousins, uncles or aunts.
(g) Additional Transitional PST rebate for
NON-CONDOMINIUM Builder Purchase (where
part of construction was done as of July 1, 2010)
If HST is payable on a newly constructed
home (not a condominium) and if
construction of the residence was
at least 10% complete as of July 1, 2010, a
transitional PST rebate of up to 2% of the sale
price can be claimed
on the PST component of the HST as follows:
% Completed As
Of July 1, 2010
Portion Of 2%
Of Price To Be Refunded
10% - 24%
25% - 49%
50% - 74%
75% - 89%
90% - 100%
buying a freehold townhouse, a semi-detached or a detached
from a builder for $500,000.00 where
construction was 95% complete on July 1, 2010 and closing
occurs on July 15, 2010, PST rebate for qualified
buyer will be:
(i) 75% of 8% on the first $400,000.00 = $24,000.00
(ii) 100% of 2% on $500,000.00 = $10,000.00
Total rebates $34,000.00
Instead of paying a gross PST of 8% on $500,000.00 being
$40,000.00, the rebates of $34,000.00 would
reduce the net PST payable to $6,000.00. The question is
whether such Net PST is included or not included in
purchase price from the builder according to the terms of
the builder’s agreement!
Note: The PST transitional rebate of up to 2% of the
purchase price can only be obtained if:
(i) HST is payable on the price where the builder’s
agreement was accepted after June 18, 2009 and
closes after July 1, 2010;
(ii) the purchase is for new residential construction which
is not a condominium;
(iii) construction is at least 10% complete as of July 1,
(iv) a certificate is obtained on closing from the builder
stating the percentage of completion of construction as
of July 1, 2010.
Note: the builder is not required
to provide this to a buyer unless the terms of the purchase
with the builder requires such a certificate to be provided;
(v) an application for a transitional PST rebate is filed
with the government by July 1, 2014.
(h) CONTACT TELEPHONE NUMBERS FOR HST TRANSITIONAL RULES
Ontario has proposed transitional rules that assist
businesses in the transition to a Harmonized Sales Tax (HST).
more information on the transitional rules for the HST,
please call Canada Revenue Agency (CRA):
For Personal property and services - 1 (800) 959-5525
For Real property - 1 (800) 959-8287
To speak with an information officer about the introduction
of the HST in Ontario, please call 1 (800) 337-7222 or
1 (800) 263-7776.
Stephen H. Shub Professional Corporation
Barrister, Solicitor, Notary
5799 Yonge Street, Suite 803
Tel: (416) 222-1882 (live telephone receptionist to 11 p.m.
7 days per week)
Fax: (416) 222-4277
Cell: (416) 520-6120 (to 11p.m.7 days per week)
CMHC MORTGAGE LOAN INSURED LOANS for STUDENT HOUSING PROJECTS
CMHC Mortgage Loan Insurance enables Approved
Lenders to offer flexible loans for
the construction, purchase and refinance of purpose-built student housing
to see full details or go to www.cmhc.ca
Note: The Following Was released October 5 2009 and
is Provided by the Ontario Human Rights Commission from www.ohrc.on.ca
Human rights in
housing – an overview for landlords
Housing is a human
International law says that people in Canada should be able to get
good housing that they can afford. To help achieve this in Ontario, tenants and
landlords (or housing providers) have rights and responsibilities under the
Human Rights Code.
Under the Code,
everyone has the right to equal treatment in housing without discrimination and
harassment. As a landlord, you are responsible for making sure the housing you
operate is free from discrimination and harassment.
People cannot be refused an apartment, bothered by a landlord or
other tenants, or otherwise treated unfairly because of their:
race, colour or ethnic background
religious beliefs or practices
ancestry, including people of Aboriginal descent
place of origin
citizenship, including refugee status
sex (including pregnancy and gender identity)
marital status, including people with a same-sex partner
age, including people who are 16 or 17 years old and no longer
living with their parents
receipt of public assistance.
People are also protected if they face discrimination because of
being a friend or relative of someone identified above.
Where do housing rights apply?
The right to equal treatment without discrimination applies when
renting or buying a unit (for example, in a high rise apartment, condo, co-op or
house). This right also applies to choosing or evicting tenants, occupancy rules
and regulations, repairs, the use of related services and facilities, and the
general enjoyment of the premises.
As a landlord or housing provider, you are one of the people
responsible for making sure tenants’ human rights are respected. Government
legislators, policy makers, planners and program designers, tribunals and courts
must also make sure their activities, strategies and decisions address
discrimination issues in housing.
The Code says what
business practices are acceptable and what information you may ask for when
Rental history, credit references and/or credit checks may be
requested. A lack of rental or credit history should not be viewed negatively.
You can ask for income information, but you must also ask for and
consider it together with any available information on rental history, credit
references and credit checks (such as through Equifax Canada).
You can only consider income information on its own when no other
information is made available.
You can only use income information to confirm the person has
enough income to cover the rent. Unless you are providing subsidized housing, it
is illegal to apply a rent-to-income ratio such as a 30% cut-off rule.
You can ask for a “guarantor” to sign the lease – but only if you
have the same requirements for all tenants, not just for people identified by
Code grounds, such as recent
immigrants or people receiving social assistance.
Accommodating tenant needs
You have a legal duty to accommodate tenants (meet special needs
they may have) if they have real needs, based on
Code grounds. You must accommodate up to the point of undue
hardship, based on cost, the availability of outside sources of funding, or
health and safety concerns.
For example, for a tenant with a disability, you might need to make
changes to a unit, a building entrance, sidewalks or parking areas.
Some tenants need changes to rules and practices to accommodate
changing family situations or religious practices. Sometimes a tenant who is
unwell or who disrupts others (either because of a disability or due to that
person being the target of discrimination themselves) may need help. You should
assess your role to see if there are things you can do as a landlord to help the
You and your tenants share the responsibility for making the
accommodation work. You must take an active role in the process and work with
tenants in good faith to find the best solution. If your tenant provides you
with medical or other personal information, you must keep it private.
Landlords must work with tenants to find and put in place the most
appropriate accommodation as soon as possible. If this cannot be done without
causing undue hardship, or if it will take a long time, you must provide interim
or “next-best” accommodation.
Special programs and circumstances for housing
Under the Code,
special programs are permitted to help a group of people who are disadvantaged
based on Code grounds, as long
as these programs meet the requirements the Code sets out. Examples would include setting up housing designed
for older people, people with disabilities or university students with families.
When the Code does not apply
The Code does not
apply in the case of a disagreement or “personality conflict” with a landlord or
another tenant unrelated to a Code
ground, or if a tenant shares a bathroom or kitchen with the owner or the
You can advance human rights in housing
Housing providers can take a number of steps to prevent
discrimination and harassment and address human rights in rental housing by
anti-discrimination and anti-harassment policies
plans for reviewing and removing barriers
procedures for responding to accommodation requests
procedures for resolving disputes quickly and effectively
education and training programs.
It is important to make sure that organizational rules, policies,
procedures, decision-making processes and culture do not create barriers, and do
not cause discrimination. Areas where barriers could exist include wait-list and
eligibility criteria, and occupancy rules including guest policies and bedroom
Follow some key human rights principles:
design inclusively – which means thinking about people’s possible
accommodation needs before you design your building, set up your rules, etc., so
that your housing does not cause new barriers
identify and remove existing barriers
maximize integration – which means setting up housing and programs
that are inclusive, where everybody can take part
look at the needs of individuals. and consider the best possible
For more information on
landlord and tenant rights and responsibilities in rental housing, see the
Ontario Human Rights Commission’s
Policy on Human Rights and Rental Housing. This policy and other OHRC
information are available on-line at:
BULLETIN - New Asbestos Notice to Tenants required as of November 1, 2007
As explained in Fair Exchange in Sept/Oct 2006
and Mar/Apr 2007, a new Ontario government regulation concerning asbestos will
take effect on November 1, 2007. In many cases the new regulation requires a
landlord to send their tenants a notice. This
Information about when the notice is
required, or may be advisable
Information about other requirements regarding asbestos management
Requirements before doing repairs or renovations
Advice about handling tenant questions
Instructions on how to complete the notice
Who to call for more information
Templates for both a standard and short-form notice (to be given on November
An FAQ sheet to attach to the notice or provide to your staff
CLICK HERE FOR THE
FULL DOCUMENT IN PDF FORMAT
For your reference, a copy of the full
asbestos regulation is available at:
www.frpo.org > Topics and Issues >
On January 31, 2007,
replaces the Tenant Protection Act. You can view or download the
Residential Tenancies Act
The Landlord and Tenant
Board replaces the Ontario Rental Housing Tribunal on January 31, 2007 as well.
You can visit the new Landlord and Tenant Board website at
www.LTB.gov.on.ca for detailed information and a variety of forms
that will be required under the new law. A transitional provision respecting
the use of forms permits the use of Tenant Protection Act until March 31,
for a chart comparing the new Residential Tenancy Act to the old Tenant
Protection Act go to www.onpha.org
then scroll down to and click on "RTA
Quick Reference Guides: Download Summary of Numbering Changes". Then click on "Descriptive
Summary of Changes RTA to TPA"
People from out of the area are contacting
Landlords, particularly student housing , arranging to move in, in the near
future and saying they will send a money order, bank draft, etc. for the whole
year. When the draft arrives, it is for more than the requested amount . They
then give a reason for the surplus - to pay for furniture or something
extra , but that is now changed or their plans have changed and are not
coming. They want you to send back the difference and keep some for your
trouble. These drafts are FAKE but look real. Your bank sends them to the
source bank, usually, Africa or England but may even be US or western Canada.
When the bank finds out they are fake they take the money from your account.
NEVER refund any money until you are sure the draft has cleared. This
may take a few weeks.
List your Vacant
Units on the Internet for FREE
Check out WRAMA's Listing Links
where you can list your vacant units for Free.
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