Non-Resident Clients: Fees and What You Need to Know
We Specialize in Non-Resident Purchases and Sales!
Why choose us to handle your Canadian real estate transaction? Simply put, because we’re experts at it and have the contacts to make this cross border transaction a breeze. At DH we have extensive knowledge of both sides of a Non-Resident transaction. We make the process as simple and efficient as possible for our out-of-town clients, and with our vast knowledge and expertise we can answer almost any question you may have.
Below is a breakdown of our fees and an estimate of disbursements that you can expect to pay whether you are purchasing or selling. Our fees are very competitive in Northern Ontario and we expect you will agree. Fees are listed in Canadian dollars.
Disclaimer, the actual cost of your transaction may vary based on a number of factors, and for an estimate based on your specific property please call our offices.
Non Resident Sales – Fees and Questions
Our fee for the sale: $1,500 plus HST
Disbursements on the sale: $300 – $400 plus HST.
The disposition of Canadian property by a Non-Resident vendor attracts capital gains tax and requires that Non-Resident’s file a capital gains return with our Canadian taxing authority, the Canada Revenue Agency (“CRA”). Because of this we must hold-back 25% of the sale proceeds in order to satisfy your tax obligations with the CRA.
Once the appropriate amount of tax has been paid, the CRA will issue a Certificate of Compliance or “Clearance Certificate” acknowledging that you have paid the applicable tax. When this certificate is received from the CRA, a capital gains tax return must be filed once the forms become available in February of the following year. If you made capital improvements to the property while you owned it you may be able to receive a portion of the tax paid returned to you.
We understand that this process sounds complicated and lengthy, however, not to worry we know how to complete this as timely as possible and have an accountant on hand who specializes in these filings. The cost for us undertaking to complete all of the above, including paying the accountant, is below:
Our fee for completing all tax related documents and filings: $2,000 plus HST.
In total from start to finish you can expect to pay approximately, $3,800 – $4,000 plus HST.
Non-Resident Purchases – Fees and Questions
Our fee for the purchase: $1,500 plus HST
Disbursements: $300 – $900 plus HST
The disbursements in a purchase fluctuate based on a variety of things including the location of the land/property and whether you purchase title insurance. If you have questions about title insurance, please contact our offices.
In total from start to finish you can expect to pay approximately $2,500 to $2,700 plus HST.
- If you are purchasing or selling in Canada, you need a Canadian lawyer, you can not use your lawyer from your home country.
- You must provide two pieces of photo identification.
- You do not need to be in Ontario for the closing. You can sign real estate documents where you live and email or fax them to our offices.
- You can purchase in US funds, however a notional conversion must be done for the Deed.
Plans for Better Mediation
Set aside emotions as much as possible
Most people going through divorce, business dissolution, or other personal event feel a wide range of emotions including anger, sadness, and resentment. This is natural, but it’s important to realize that those emotions can affect how your legal agreement ends. Not only can it lead to even more hurt feelings, you could be facing a hefty court bill at the end if you let your emotions get the best of you.
Mediation is a way to help you come to a resolution DESPITE your emotions. We are that objective third-party observer who can look past emotionally charged situations to find a solution that makes sense for everyone.
Look to the future, not to the past
Again, it comes down to emotions. Focusing on what was can bring feelings of sadness and resentment to the surface. Looking to the future and concentrating how things can get better will improve your outlook and make the mediation process easier for you.
Come in with an open mind
Many people give up something they don’t want to. It’s unfortunate, but often it’s part of the give and take of any dispute resolution, whether you’re giving it up voluntarily in mediation or having it taken away from you in court.
It makes it easier to remember that most things are replaceable, either right now or sometime in the future. When it comes to possessions such as cars and furniture, consider how important those items really are to you compared to the cost and stress of trying to win them in court.
Plan for a whole day of mediation, though it may take longer
Mediation is usually faster than going to court, but it still takes time to come to an agreement on all the things in your lives. House, camp, vehicles, valuables, and investments all need to be looked at separately and as part of the bigger whole. Planning for what’s in the best interest of children can also be time consuming to ensure you get it right.
No matter what the situation from divorce to sorting out the details of a family will to dissolving a business partnership, mediation always goes more smoothly when all parties keep talking to each other.
Carefully consider your mediator’s recommendations, even if you disagree at first
Your professional mediator is there for a reason. It’s helpful to listen and consider why the mediator is suggesting a particular course of action. The mediator’s role is to provide an objective viewpoint for all parties, keeping everyone’s best interests in mind. In many cases, his or her recommendations won’t be far off from a court decision – though it will be much less costly if you reach an agreement before that point.