10.6 Purpose-built Rental Exemption Or Refund Retained

10.6 (1) Section 10.5(1) to (9) does not apply to a transferee who has obtained an exemption under section 10.2 or a refund under section 10.3 if the transferee does not rent or offer for rent the apartments referred to in section 10.4(1) as required by paragraph (a) of that provision, or if an event described in section 10.5(5)(a) or (c) occurs, only because of one of the following reasons:

(a) an apartment contained in the residential improvement on the qualifying property is unavailable for rent because of circumstances beyond the reasonable control of the transferee or because it is undergoing reasonably required renovations or repairs;
(b) subject to subsection (2) of this section, an apartment contained in the residential improvement on the qualifying property is unavailable for rent because it is occupied by an owner of the residential improvement or by a person employed or engaged to manage the residential improvement;
(c) a prescribed reason.

(a) no more than 2 apartments contained in the residential improvement are unavailable for rent for the reason set out in that subsection, and
(b) at least 4 other apartments contained in the residential improvement are rented or offered for rent only on a monthly or longer-term basis.

(3) Section 10.5(1) to (9) does not apply to a transferee who has obtained an exemption under section 10.2 or a refund under section 10.3 if an event described in section 10.5(3) occurs only because of one of the following reasons:

(a) an interest in the qualifying property of any transferee is transferred under a taxable transaction to a person who is a transferee under the eligible transaction in respect of which the exemption or refund was obtained;
(b) subject to subsection (4), an interest in the qualifying property of any transferee is transferred under a taxable transaction in respect of which the transferee of the interest is exempt under section 14(3)(h) or (q);
(c) an interest in the qualifying property of any transferee is transferred under a taxable transaction in respect of which the transferee of the interest is exempt under section 14(4)(u) or (w);
(d) a prescribed reason.

(4) The exception under subsection (3)(b) applies only if, immediately after the registration of the taxable transaction, a person who is a transferee under the eligible transaction in respect of which the exemption or refund was obtained holds a registered interest in the qualifying property.

2023-23-149.