Module 3

Question 1

Act respecting duties on transfers of immovables is applied in 6 instances, they are;

Answer 1

Welcome tax owed by the buyer to the municipality each time there is a transfer of ownership

• sale
• donation
• succession
• given in payment
• exchange
• lease exceeding 40 years

Question 2

Taxation base is the highest of the following 3 criteria

Answer 2

Sale price
Appraised value
Municipal evaluation

Question 3

Welcome tax rate

Answer 3

0-50k .5%
50-250k 1%
250-over 1.5%

Question 4

Exceptions to welcome tax (4)

Answer 4

• Taxation base less than 5k
• Taken in payment by bank
• Legal person (business where 90% of shares owned by transferee
• transfer to ascendents or descendants, spouse or common law

Question 5

Cultural heritage act

Answer 5

• Preemptive right in favour of minister of cultural affairs if immovable if declared cultural property for at least 50 years
• 60 day notice to minister of cultural affairs in order to repair or restore property
• prior authorization from minister of cultural affairs to sell to a non resident or to a legal person whose business address is not in Quebec

Question 6

Income tax act

Capital gains

Answer 6

-sale of an immovable by a natural, non resident (not present in Canada for 366 days in the last 2 years)
OR
Legal person whose shareholders are not Canadians in majority
-seller needs a certificate from both governments authorizing sale and amount to be withheld from sale in order to pay income tax if need be
*** buyer must demand these amounts be withheld failing which he will be liable to both governments

Question 7

Act respecting rental board

Housing complex of more than 12 units
Managed by same person
Immovables share common facilities including common wall

Answer 7

• No on can sell an immovable part of a housing complex without authorization from rental board unless all units sold to same person
• if sold without authorization, rental board or tenant may address superior court for resolution of sale

Question 8

Act respecting preservation of agricultural land

Answer 8

Forbidden to use land for other purposes, divide or remove arable soil

Any sale or division can be resiliated unless authorized, may also lead to fines

Question 9

Act respecting acquisition of farm land by non residents

Answer 9

Non resident who wishes to buy more than 4 hectares, north of the 50th parallel, must seek and get authorization from the commission for preservation of agricultural land

Question 10

Act and bylaws respecting the protection of the environment

Answer 10

Seller is responsible for the decontamination of a building or land he sells unless negotiated differently ie buyer

Question 11

gst and pst applies on sales of (3)

Answer 11

Applies to

new immovables
Commercial regardless of age
Vacant land if venture revenue (his business is selling land)