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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 that was actually paid for the transfer of the immovable (not including the GST and the QST)
  • The amount of the consideration1stipulated for the transfer of the immovable (generally the amount shown on the deed of sale)
  • The amount of the market value at the time of the transfer of the immovable (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 property furnished by the transferee at the time of the transfert
  • The amount shown in the contract
  • Privileges, mortgages or other charges creating a claim against the immovable.

 

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 for fiscal year 2010 to 2016:

Fiscal year

Comparative factor

2016 1.03
2015 1.02
2014 1.00
2013 1.14
2012 1.08
2011 1.00
2010 1.19

 

Calculations of the duties on transfers of immovables

The tax is calculated as follows:

On that part of the basis of imposition

Rate

Which does not exceed $50,000

0.5%

Which is in excess of $50,000 but does not exceed $250,000

1.0%

Which is in excess of  $250,000 but does not exceed $500,000

1.5%

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

2.0%

Which exceeds $1,000,000

2.50%

Calculations using $560,000 as basis of imposition:

Multiply $50,000 by 0.5%

=

$250

Multiply $200,000 by 1.0%

=

$2,000

Multiply $250,000 by 1.5%

=

$3,750

Then multiply $60,000 by 2.0%

=

$1,200

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


:


$7,200

Calculations using $1,100,000 as basis of imposition:

Multiply $50,000 by 0.5%

=

$250

Multiply $200,000 by 1.0%

=

$2,000

Multiply $250,000 by 1.5%

=

$3,750

Then multiply $500,000 by 2.0%

=

$10,000

Then multiply $100,000 by 2.5%

=

$2,500

For a basis of impositionof $1,100,000 total fees will be


:


$18,500

 

Amendments to the Act respecting duties on transfers of immovables

On March 18, the day after the speech on the 2016-2017 Budget by the provincial Minister of Finance, came into effect various legislative amendments to the Act respecting duties on transfers of immovables concerning the following aspects:

  • Exemptions on transfers between separated de facto spouses;
  • Exemptions on transfers between closely related legal persons;
  • Exemptions on transfers between a natural person and a legal person;
  • Implementation of a mechanism for the disclosure of share transfers;
  • Implementation of a mechanism for the disclosure of transfers that are not registered at the Bureau de la publicité des droits;
  • Exemptions on transfers involving international organizations.

In addition, buyers of a mobile home entered on the property assessment roll must now pay duties on transfers of immovables. They are required to disclose, within 90 days of the transaction, related information by using the Transfers of immovables form. Once completed, it must be sent with a copy of the deed of sale to the Ville de Montréal.

Taxpayers who are required to disclose share transfers or transfers of immovables can contact us at the following email address: [email protected] .

Forms :

For more information on these changes, please consult the 2016-2017 Budget by visiting the following website: budget.finances.gouv.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.

Since March 18, 2016, separated by reason of the breakdown of their union de facto spouses have 12 months from the date of separation to complete the transfer otherwise the exemption will not be applied. Married couples have 31 days after the divorce judgment to complete the transfer.

Several other situations justifying exemption are provided for by law.

 

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: September 14, 2016)

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.