Ontario HST rebate gives developers an ‘edge’ over investors seeking to offload new homes

As Published in The Globe and Mail

By Erica Alini featuring Leor Margulies and David Taub

Ontario's newly announced HST rebate on new housing is creating a divide between developers and many preconstruction buyers, according to industry observers. While developers with unsold inventory can now offer purchasers significant tax savings on newly built homes, many investors seeking to assign preconstruction units are unable to benefit from the same relief because of restrictions in the rebate program.

"The policy has put a bit of a wedge between individual investors with units being completed and developers who can offload more easily," said Leor Margulies, a real estate lawyer with Robins Appleby LLP. David Taub, a litigation lawyer at the firm, noted that many purchasers who bought at the height of the market continue to face challenges as closing dates approach, and many are still seeking legal advice regarding their options.

Read the full article in The Globe and Mail.