Ask me anything. Anything at all. And I promise you an honest, straightforward answer. I’m here to help and I’m happy to do so. Don’t be shy because there’s no such thing as a stupid question. If you haven’t been selling real estate every day for the past 20+ years like I have, no one expects you to have all the answers. But you SHOULD know as much as possible because there’s a lot of money involved, your money, and because we’re talking about your home, the place where you spend most of your time. This recurring blog post is dedicated to answering any questions you may have, big or small, easy or hard, no matter who you are. So go ahead. Ask me anything. Here’s today’s question and answer:

Do I Have to Pay HST When I Buy a New Home That’s Listed On MLS?

When new homes are listed on MLS in Toronto , it’s generally accepted practice that the price includes HST unless the listing specifically states that HST is not included in the price and will be payable by the buyer in addition to the price. So, for example, if you see a home listed for $1,000,00o, you should expect to pay $1,000,000, or less, depending on how the negotiations go, and not $1,000,000 PLUS $130,000 for HST. The HST goes to the government and is not kept by the builder, although there are ways that some builders avoid the legal obligation of paying HST, some of which are above board and some of which are not. To protect yourself from any unwanted surprises regarding HST, make sure paragraph 9 of your Agreement of Purchase and Sale stipulates that any HST is included in the price and NOT in addition to the price. [Note: If you’re looking at a new home that ISN’T listed on MLS, different rules might apply so have your lawyer look the contract over before you sign it.]