Wills & Property Transfer Tax
When it comes to property transfer tax, the tax is payable by a purchaser whenever there is a purchase of real estate. That real estate can be residential, commercial, or industrial. The property tax, often referred to as PTT for short, is calculated in increments based on a property's fair market value.
For example, when purchasing an initial two hundred thousand dollars worth of property at fair market value, there will be a 1% charge. For values between two hundred thousand and two million, there will be a 2% charge. For a two to three million dollar property, the government will collect 3% in tax, and so on. If you have a residential property worth more than three million, the government will add 2%, which takes the property tax up to 5%.
All property tax is payable on the fair market value of a property. Generally, this means that the fair market value is actually the purchase price that's paid by the purchaser. However, this is not always the case. It is important to note that the Property Transfer Tax might be applicable in a situation that involves adding a person to the home title - which is not your typical purchase scenario. For this reason, it is critical to speak to a lawyer before making that decision to buy a property or even change the title. CBM Lawyers can provide you the pertinent information you require concerning the Property Transfer Tax - tailored to fit your particular circumstances.
CBM associate, Janice Papp, specializes in Real Estate, Family, and Business Law. Contact CBM today to learn more about how Janice can help you.