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Duties on transfers of immovables

Duties on transfers of immovables are amounts that are payable when the right of ownership on a property is transferred. The buyer is responsible for paying these duties. Where there is more than one buyer, they are joint and solidarily liable for payment of the transfer duties. All municipalities must collect duties on the transfer of any immovable situated within its territory. (Act respecting duties on transfers of immovables – R.S.Q., chapter D-15.1).
The duties on transfers of immovables are imposed at the time of purchase of an immovable and are payable in one installment.
 
The city does not reissue a property tax account  following a property transfer. However, the new owner is responsible for making sure those taxes are paid. 

 

Basis of imposition

The basis of imposition corresponds to the greater of the following three amounts:

  • The amount of the consideration1 furnished for the transfer of the immovable (amount actually paid excluding GST and QST)
  • The amount of the consideration1 stipulated for the transfer of the immovable (amount shown on the deed of sale)
  • The amount of the market value of the immovable at the time of its transfer (value entered on the property assessment roll multiplied by the comparative factor of the transfer's fiscal year).

1 The following are generally regarded as considerations:

  • The value of any goods provided at the time of the transfert
  • The amount shown in the contract
  • Privileges, mortgages and other encumbrance on the building

Comparative factor

Where the imposition is made on the basis of the market value at the time of the transfer, the value entered on the property assessment roll must be multiplied by the comparative factor of the transfer's fiscal year.

Comparative factors of the Ville de Montréal:

Fiscal year

Comparative factor

2018 1.01
2017 1.00
2016 1.03
2015 1.02

 

Calculations of the duties on transfers of immovables

As of January 1, 2018, the brackets as provided in the  Act respecting duties on transfers of immovables are modified annually according to parameters established by the ministère des Affaires municipales et de l'Occupation du territoire. By consistency, the Ville de Montréal indexes the two last brackets.

The transfer duties for properties in Montréal are calculated as follows.

Rate per bracket from February 1st, 2018:

On that part of the basis of imposition

Rate

Which does not exceed $50,400

0.5%

Which is in excess of $50,400 but does not exceed $251,800

1.0%

Which is in excess of  $251,800 but does not exceed $503,500

1.5%

Which is in excess of  $503,500 but does not exceed $1,007,000

2.0%

Which exceeds $1,007,000

2.50%

Calculations using $560,000 as basis of imposition :

Multiply $50,400 by 0.5%

=

$252.00

Multiply $201,400 by 1.0%

=

$2,014.00

Multiply $251,700 by 1.5%

=

$3,775.50

Then multiply $56,500 by 2.0%

=

$1,130.00

For a basis of imposition of $560,000 total fees will be


:


$7,171.50

 

Unregistred property transfer

Some transfers of immovables may not registered in the Land Registry. Purchasers are still required to pay duties on transfers and are required to disclose related information within 90 days of the transaction using the Divulgation form. Once completed, it must be sent to the Ville de Montréal, along with a copy of the deed of sale and the nominee agreement as appropriate. A duties on transfers account will be issued by the city. Taxpayers who have questions can contact us at the following address: divulgationmutations@ville.montreal.qc.ca .

Exemption

A buyer may be exempt from paying the duties on transfers in certain cases as set out in the Act respecting duties on transfers of immovables, R.S.Q., chapter D-15.1. The notary must mention the applicable exoneration, in accordance with the legislation, which exempt the buyer from paying the duties on transfers.

Main reasons justifying an exemption:

  • Transfer to an ascendant or descendant in the direct line (sale from father to son; from grandmother to granddaughter);
  • Where the transferor is a natural person and the transferee is a legal person with 90% of its issued shares with full voting rights are owned by the transferor;
  • Transfer between married couples or between de facto spouses (as defined in the Act respecting duties on transfers of immovables). Same sex partners are included in the provisions of the law.

Common-law spouses who separate have 12 months after their separation to transfer the property rights. Beyond this deadline, the transfer will not be exempt. Married spouses who separate have 30 days after the date of the divorce judgment to make the transfer if this judgment does not assign ownership of the building to one or the other of the spouses.

The Act foresees several other exemption situations.

Exemptions from the payment of duties on transfers can be revoked. This is notably the case following a transfer of shares modifying the control of a company (90% or more of the votes). The purchaser of the immovable has the obligation to disclose the cessation of the right to an exemption by using the disclaimer form Divulgation exoneration. Once completed, this form must be sent to Ville de Montréal offices. Taxpayers who have questions can contact us at the following email address : divulgationmutations@ville.montreal.qc.ca.

Special duties

Special duties are a form of compensation in lieu of transfer duties that are billed to buyers whose transaction is exempted.

The Act respecting duties on transfers of immovables – R.S.Q., chapter D-15.1), amended December 20, 1999, sets the amount of the special duties in accordance with the transferred values:

Value of the property

Amount payable

Immovable less than $5,000

No duties

Immovable of $5,000 to less than $40,000

Special duties equivalent to the transfer duties (0.5%)

Immovable of $40,000 or more

$200

 

Refund - Home Ownership Program

Under the Home Ownership Program for families, the city may refund duties on transfers of immovables at the request of new owners and subject to certain eligibility criteria. Taxpayers who wish to learn more about this program and how refunds can be obtained should visit Habiter Montréal.

 

(Date of updating: May 10, 2018)

For more information, please:

  1. Call your borough office;
  2. Call the 311 (island of Montréal) ou 514 872-0311 (outside Montréal);
  3. Send us an e-mail.

The details contained here are for information only and have no legal value. The acts and by-laws posted on this site are for administrative purposes only, and although efforts are made to update them, they may not be the latest versions. Please check the sources before using the texts officially.