Local governments utilize land transfer taxes for a variety of things, from funding specific enterprises to supplementing the budget for schools and other needed services. Voters usually have to approve any changes in the land transfer tax policy for an area, and they must also approve the terms of those changes. For example, a city can ask voters to approve a temporary increase in the land transfer tax to make up a budget shortfall, or to approve a permanent increase.Depending on the regional laws, this tax may be paid by the buyer, the seller, or both. The terms of the land transfer tax are usually included in the contract drawn up between buyer and seller so that both parties are aware of what is expected. In rare cases, one of the parties may volunteer to pay the land transfer tax on behalf of the other, to sweeten the deal or facilitate an agreement when the two parties are having difficulty agreeing on the terms of a real estate deal.


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http://www.kevinloberg.ca


Kevin Loberg Broker
Royal LePage Terrequity Realty, Brokerage Independently owned and operated
Office: (416) 485-2299Mobile: (416) 495-3859