Tuesday, September 15, 2009

Does GST apply with the sale of a Power of Sale Property?

I received the following question about GST and POS properties
Hi Mark,
I cam across your website with information about Power of Sale homes.
I was wondering if GST gets charged on a house that is listed as power of sale if it is a resale home (not from the builder).
Hello S,

Thank you for your real estate inquiry. Generally, no GST is applicable. If the owner of the house selling under POS has performed extensive renovations and alterations, GST may apply, otherwise in 99% of the cases it does not apply

Please let me know if you have any other questions or if there is anything else I can help you with.

Thank you again for contacting me and I will do my best to help you with your real estate needs,


A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

BUS 905-828-3434
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

1 comment:

  1. Hi Mark,

    We are considering the purchase of a POS home and our agent has said that we will be required to pay 5% GST to the vendor (the bank) on closing!
    This would be on top of our downpayment and closing costs. Is this true?
    Thanks Kim