We've all been reading about the new HST Rebate on a daily basis. However the program needs the cooperation of both the Ontario and Federal governments and it has not yet been passed into law.
The article in the link at the bottom of this email is a good summary. In addition to this information I'd suggest that any buyer have a legal review done of any APS from a new home builder prior to going unconditional.
The program can benefit buyers of new homes, builders of new homes and drive down pricing of resale properties. Some neighbourhoods will be impacted to a greater degree than others, particularly those in suburban areas that are near new housing developments.
Below are key dates as understood so far:
According to the Ontario government’s backgrounder on the rebate, if you plan to a buy a new home that isn’t built yet, you will get the rebate based on the following conditions:
You sign an agreement of purchase and sale for the home within the HST rebate window, which is from April 1, 2026 to March 31, 2027.
Construction begins on or before Dec. 31, 2028, and “the home is substantially completed" on or before Dec. 31, 2031.
There are 3 key changes as part of Trust in Real Estate Services Act (TRESA) regulated by RECO.
1. Disclose content of offers.
All content or just some IE. Price, deposit, conditions.
No personal info about the buyers ie. 1st refusal address.
This may not be in your best interests and could prefer the old blind bidding.
2. Representation REBBA used to be any agents with same brokerage with both buyer and seller was multiple representation.
Now Designated Representation – single agent not brokerage.
IE. Sally Smith with my company has a listing as a designated listing agent and I have a buyer under designated representation it is NOT Multiple Representation.
Multiple Representation
A) If I have a Designated Buyer and B) I also have a Designated Seller *Must be disclosed**
Must equally protect interests of the buyer and seller
Full disclosure of all factual information.
We must be instructed with written consent from Buyer and Seller. Temporary for 120 days from December 1st, 2023 Almost all listings are brokerage listings NOT with Designated Representation. - if a buyer with a different agent under Designated Rep, then that is Multiple Representation, just like it used to be.
3. Must sign a new RECO Information Guide, a 13 page document which outlines your rights and obligations.
According to Trust in Real Estate Services Act (TRESA) run by RECO.
1. Must sign a new RECO Information Guide, a 13 page document which outlines your rights and obligations.
2. Representation Either a Client or a Self-Represented Party SRP.
1. Client
Undivided loyalty
Disclosure
Confidentiality
Appraise the property and recommend an offer price and strategy.
2. Self-Represented Party
No confidentiality, no services, no opinions, no advice. Any service I offer is really for my client the seller.
I must disclose your motivation to the seller.
I must disclose how much you are willing to pay my seller client.
I must disclose your preferred terms and conditions.
No appraisal of property so you know it’s true market value.
I can perform the action of preparing an offer for you but can add nothing to the offer that uses my skill, experience, and knowledge.
IE. I type the address, the legal description, and lot size.
I CANNOT recommend an;
Irrevocable time
Price
Deposit amount
Title Search Date
Which clauses to use, such as you want a walk through before closing, a survey, VUT declaration, Ottawa city Green loan, what if your bank appraiser needs access and you did not account for that in the offer, etc.
Which conditions to insert to best protect your interests?
How long is the condition?
What happens to your deposit if the condition is not met in time?
Do you even know the difference between a typical clause and a condition?
Recommend professionals to assist you, ie. Inspectors.
Basically you are on your own and it’s very high risk. You are strongly advised to call a lawyer.
BUT if the lawyer prepares the offer, you have to pay them.
They can’t do an appraisal on the property, what do they know about market values.
What happens if the counter offer comes back at 6 pm and you have until 9 pm to respond or lose the property….or if negotiations occur on a weekend.
Multiple Representation
A) If I have a Designated Buyer and
B) I also have a Designated Seller
**Must be disclosed***
Must equally protect interests of the buyer and seller
Full disclosure of all factual information.
We must be instructed with written consent from Buyer and Seller.
Temporary for 120 days from Dec. 1, 2023
Almost all listings are brokerage listings NOT with Designated Representation.
If a buyer with a different agent under Designated Rep, then that is Multiple Representation, just like it used to be.
