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9 First Time Home Buyers’ Program—unqualified Transferee

In This Volume

9 (1) Subject to section 10, a transferee who has obtained an exemption under section 5 or 6 or a refund under section 7 is liable under subsection (2) of this section if and from the time that the transferee

  • (a) fails or ceases to qualify for an exemption under section 5(1)(a),
  • (b) fails or refuses to comply with section 5 (1)(b) or (2), or
  • (c) subject to subsection (1.1), fails, refuses or ceases to comply with the obligations under section 8.
  • (1.1) If a transferee does not meet the obligations under section 8 only because the transferee, before the first anniversary of the registration date, fails to establish a qualifying residence as required under section 8(2)(a)(ii) or (2)(b)(i)(B) as applicable, the transferee is liable under subsection (2.1) of this section from the date of the failure to establish a qualifying residence.
  • (2) A transferee referred to in subsection (1) must pay to the administrator tax in the same amount that the transferee would have been obliged to pay under section 2(1)(a) had the transferee not received the exemption or refund.
  • (2.1) A transferee referred to in subsection (1.1) must pay to the administrator tax in the amount calculated in accordance with whichever of the following applies:
  • (a) if the period between the registration date and the date from which the transferee is liable under subsection (1.1) is greater than or equal to 360 days, the transferee is liable for the amount that would apply under subsection (2) is reduced by 100%;
  • (b) if the period between the registration date and the date from which the transferee is liable under subsection (1.1) is less than 360 days, the transferee is liable for the amount that would apply under subsection (2) multiplied by
    1 – (n/365)    

Where

  • n is the number of days between the registration date and the date from which the transferee is liable under subsection (1.1).
  • (3) A transferee not referred to in subsection (1) who has obtained an exemption under section 5 or 6 or a refund under section 7 for an amount greater than the amount to which the transferee is entitled under this Act must pay to the administrator as a tax liability the amount by which the exemption or refund received exceeded the exemption or refund to which the transferee was entitled.

1987-15-3.25; 1994-14-4, effective March 23, 1994; 1995-3-8, effective March 29, 1995; 2003-3-35, effective February 19, 2003; 2008 10-92, effective February 20, 2008.