# Bought condo suites, how to swap ownership names?



## hedgehog88 (Nov 18, 2012)

Hello,

So, myself and my father each bought a condo suite as an investment 2 years back. Recently I made a decision to move in to the suite once occupation date arrives. Currently at its construction stage, I am considering my father's suite more than my suite choice as the layout and view best meets my needs of living enjoyment. I have discussed with my father and he agreed to swap ownership with mine, therefore I will own his suite and he will take mine. Because my father only purchased the suite for investment he doesn't mind swapping as he is planning to sell it once he takes it over.

Now my question is, what is the process for something like this to happen? I'm not 100% sure if I need a realtor for this or if I just need to talk to the condo office. Would there be any fees for this to proceed?

If anyone can assist me some answers that would be most appreciated.

Thank you.


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## MoreMiles (Apr 20, 2011)

hedgehog88 said:


> Hello,
> 
> So, myself and my father each bought a condo suite as an investment 2 years back. Recently I made a decision to move in to the suite once occupation date arrives. Currently at its construction stage, I am considering my father's suite more than my suite choice as the layout and view best meets my needs of living enjoyment. I have discussed with my father and he agreed to swap ownership with mine, therefore I will own his suite and he will take mine. Because my father only purchased the suite for investment he doesn't mind swapping as he is planning to sell it once he takes it over.
> 
> ...


Two major issues.

1. It's a new construction. If you change the owner now, you will disqualify for HST rebate. The builder or CRA will send you a tax bill in the magnitude of $20-30,000 depending on your condo value. You are only eligible for residential HST if the unit is for primary residence. You may be eligible for NRRP rental type of rebate. However, you have to rent it out for at least one year under your name. Once you change ownership, the rebate opportunity may be lost. http://www.rcllp.ca/condo/hst-rebates-on-new-housing-including-rebates-for-rentals/

2. Swapping is a change of ownership. You are buying and reselling. Although you may not need a realtor to waste commission, you may be subject to the land transfer tax again, which is around 2%

These two issues may make you lose 10% right away of your existing properties. Do you still want to swap then?


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## Rusty O'Toole (Feb 1, 2012)

You don't need a realtor but you do need a lawyer or paralegal. You are in luck as transfers between blood relations get special treatment when it comes to taxes. I believe you can do this trade without paying transfer tax. Check with your lawyer or paralegal.

If it is impractical to do the swap for tax reasons you may do a lease with option to buy, land trust or some other way of getting at the same thing.


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## MoreMiles (Apr 20, 2011)

If the units have not been registered and closed, you may also use your "assignment privilege" to complete this. I agree with Rusty that you do need a lawyer and perhaps an accountant too, to clarify those issues. Don't let this happen to you! http://www.thestar.com/life/homes/2012/04/27/why_cra_wants_30000_hst_rebates_back.html


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## Mall Guy (Sep 14, 2011)

maybe hold each others condos in trust for the other . . .


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