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Checklist to minimize taxes on inherited Real Estate in Canada:

Immediate Steps

1. Obtain a certified copy of the will or probate documents.

2. Notify the Canada Revenue Agency (CRA) and update the property's ownership records.

3. Consider consulting a tax professional or estate lawyer.

Tax Planning

1. Defer tax payment: File the terminal tax return (T1) and request a deferment of tax payment.

2. Use the "Principal Residence Exemption" if the property was the deceased's primary residence.

3. Utilize the "Charitable Donations Tax Credit" if the estate donates to charity.

4. Consider an estate freeze to minimize future tax liabilities.

Property Valuation

1. Obtain a professional appraisal to determine the property's fair market value (FMV) at the date of death.

2. Use the Fair Market Value to calculate the capital gain (if applicable).

Tax on Capital Gains

1. Calculate the capital gain: FMV - original purchase price (or adjusted cost base).

2. Apply the 50% inclusion rate (only 50% of capital gain is taxable).

3. Claim the "Principal Residence Exemption" if eligible.

Other Considerations

1. Potential tax implications for beneficiaries (e.g., capital gains, income tax).

2. Consider transferring ownership to beneficiaries instead of selling.

3. Review and update the property's insurance and estate plans.

Additional Resources

1. CRA Guide: T4011, "Preparing Returns for Deceased Persons"

2. CRA Website: "Inheritance of Property"

3. Consult a tax professional, estate lawyer and Realtor for personalized advice.

Please consult a tax professional or estate lawyer to ensure compliance with Canadian tax laws and regulations.

Would you like me to provide more information on this topic? Call 416-882-9090 

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Here Are 5 Issues That Could Delay Your Real Estate Closing

1. Challenges in the buyer's financing

Delayed or denied financing is a common cause of prolonged closing. Many home buyers, especially first-timers, don't realize that even though they were pre-approved for a mortgage months before and they already have a mortgage commitment, the loan is still not guaranteed. The lender still needs to review their credit and bank statements one final time within a few days of closing.

Things could go wrong when that second verification reveals a new credit line that’s been opened (for a new car, new house stuff, etc), a change in employment, or some other issues. Remember that even the smallest changes in your financial situation can create problems up to the moment you close on the property. So changing jobs, applying for a new credit card, falling behind in paying your debts, receiving a cash gift, or having a sudden large deposit in your bank account are not advisable since the lender may request additional information or documentation, which could throw a wrench into the process.

To avoid this: Don’t make any sudden financial moves in the weeks between loan approval and closing. Also, don’t forget to contact your lender days before closing to discuss and solve any issues that may have turned up.

2. Any discrepancy in the home's appraisal value

A home appraisal determines the market value of a home. Lenders require an appraisal to verify that the property is indeed worth the price a buyer has agreed to pay for. The bank's appraisal value must match or exceed the home’s value or sale price. If the appraisal value falls short, the bank will delay the closing.

Appraisal gaps, which is the difference between the appraised value of a home and the agreed-upon price, have recently become much more common because of soaring home prices. While this doesn’t necessarily mean that the deal is off, addressing it can take time. In fact, according to the REALTORS® Confidence Index Survey by the National Association of REALTORS® in February 2024, seven percent of contracts had delayed settlement due to appraisal issues. 

To avoid this: With the consensus of both parties, the seller can complete necessary repairs to increase the home’s value, or simply bring down their selling price. Buyers should also be prepared to pay the difference if the appraisal is too low. The parties could also contest the appraisal. Whichever the eventual solution, the closing date will likely move further into the future.

3. Issues with real estate title

A real estate title asserts someone's legal right of ownership of a property. Before you buy or own your house, the title must be transferred from the seller’s name to yours. You also need to make sure that the person you’re buying from actually has the right to sell the property. This is when a title search becomes important. 

According to Bankrate, a title search is a process in which a title company or attorney examines public records to make sure that there are no claims, liens, or issues with a property that could result in another person or entity asserting they have a stake in the home. Issues such as tax liens or claims on the property from a relative or co-owner can postpone a real estate closing. Even unpaid HOA dues and minor errors in the home’s public records can cause significant confusion, putting a transaction on hold until everything is sorted out.


To avoid this: A seller may be able to get ahead of title problems by having a real estate attorney track the home’s title history. But since problems with a real estate title can be the result of past mistakes, there’s not much a buyer can do to avoid them. They will definitely need some time to resolve, so a little flexibility and patience can go a long way. It may be frustrating, but it’s better to be safe than sorry before claiming your way into homeownership.

4. Problems with the money transfer

On real estate closing day, you'll have to prepare the correct amount of funds to cover your down payment and closing costs. If there’s a problem with your fund transfer, you can expect to experience delays. 


While some financial institutions and title companies prefer cashier’s or certified checks, others require funds to be transferred electronically. If you’re instructed to wire funds, it’s critical to talk to your settlement agent or attorney about what their wiring requirements are.


To avoid this: Before closing day, make sure to communicate with your real estate agent and lender about what form of payment is required. Also, be informed and know exactly what’s expected from you in the closing costs and certified funds. Don’t forget to have your checkbook with you and be ready to pay for small items that might crop up, such as an unpaid electric bill.

5. Ugly revelations during the final walkthrough

The final walkthrough is typically completed after the seller has moved out a few days before, or even on the day of, settlement. It allows buyers to do one last check on the property, making sure that the home they're purchasing is in the same condition it was when they agreed to buy it (or even better). 

Surprises can arise during the final walkthrough that can influence the real estate transaction. Here are just a few of them:

  • Missing fixtures - Misunderstandings about which items stay and which go with the seller is a common issue. Perhaps you’ve taken a liking to a particular household item and assumed it would stay, only to find out that the sellers took it with them. Unless you’re really attached to the item, you may want to let this one slide if you want this deal to go through. 

  • Unfinished repairs - If the seller “forgets” to fix any agreed-upon repairs or simply neglects to do them by the closing date, you might not be able to close on your loan until those repairs are complete. If you’re working with a trusted real estate agent, they’ll ensure that the repairs you’ve negotiated are completed well before the closing is scheduled to prevent delays.

  • Other last-minute revelations - Double-check if the appliances are working properly; that the utilities and other home systems are functioning, and even see to it that the toilets are working!

To avoid this: Good communication is essential in solving any of the problems that arise during the final walkthrough. Be very detailed in your contract about what stays and what goes, and make sure it reflects your expectations. The same can be said about agreed-upon repairs after the home inspection. The safety and soundness of the property are of utmost priority, so ensuring that the seller either completes the necessary repairs, settles on a lower sales price, or even makes some other concession, will prevent the date of the closing from being pushed back.

Call Owais Ghani at 416-882-9090 and get your self protected 

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Still Renting Your Home? 4 Facts That Might Change Your Mind

Each year, home renters face the question of whether to renew their lease for another year or determine it is time to buy a home of their own. Over the past couple of years, the US housing market has changed dramatically as home values have soared and interest rates have remained low. So, if you are still renting your home, it might be time to buy instead.

4 Facts About Renting your Home

1. Rents Are Rising Quickly – Higher priced home values drive higher rent costs. While a 30-year fixed home loan will provide steady monthly payments for the duration, most renters are shocked to see their housing payments rise each year.

2. Paying for Your Landlord’s Equity – As home prices rise, so does the equity in the property. As a renter, you are making the loan payments for your landlord, while they reap the benefit of increased equity.

3. You Get What Your Get – A homeowner can paint, renovate, and customize the home to their heart’s content. A renter must live with the choices the landlord made about décor.

4. No Tax Benefits – Homeowners can deduct the home mortgage interest and property taxes off their gross income, offering huge tax savings.

With a wide variety of home loan programs available, buying a home may be more affordable than you think. If your lease is up for renewal, this could be a good time to consider the benefits of homeownership instead.

Call for No Obligation chat at 416-882-9090

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WHY DIDN'T MY HOUSE SELL?

Why Didn’t My House Sell?

There is nothing more frustrating for a seller than to watch houses around them sell like hot cakes while theirs lingers on the market. Finally, when the listing expires, they find themselves asking why? Why didn’t my house sell? In a robust housing market like we’ve had the past few years, the good news is there are some common reasons why a home doesn’t sell. If you find yourself in this position, ask yourself these questions, and then correct them and relist them.

· Did You Stage Your Home? We’re not talking about expensive services that bring in all new furniture here, but you do need to make your home attractive. The basic “curb appeal” rule still applies, even in a “sellers’ market.”

· Did You Limit Access? When homes are moving quickly, it’s tempting to assume every home will get multiple offers. But buyers still want to view the home before making that offer, if your home is difficult to see, you will lose potential buyers.

· Did You Price Your Home Correctly? Setting the right price is always important. Even when prices are rising, an unrealistically high listing price will cause buyers and their agents to ignore the home.

· Did You Hire The Right Agent? Sometimes, it really is the agent’s fault. The right agent will properly market the home, communicate frequently, offer advice about price/offers, and make themselves available. They should be giving feedback throughout the process about adjustments to ensure that the home is seen and is appealing to potential buyers.

If you answered “no” to these questions, then relisting may be a great option. Make the changes you need to, and then relist the property. This time, you may not need to ask yourself, “why didn’t my home sell”?

For for tips Call us for a Free Consultation at 416-882-9090

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This website may only be used by consumers that have a bona fide interest in the purchase, sale, or lease of real estate of the type being offered via the website. The data relating to real estate on this website comes in part from the MLS® Reciprocity program of the Toronto Regional Real Estate Board. The data is deemed reliable but is not guaranteed to be accurate.