Non-resident Sellers in Canada

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Non-resident Sellers in Canada

Post: # 47578Post
Mon Jan 21, 2019 7:58 pm

Non-resident Sellers in Canada

If a seller is a non-resident of Canada , 25% of the entire purchase price needs to be held back until the seller satisfies their own income tax obligations relating to the sale.

In some cases, this 25% hold back can result in there not being sufficient funds available on closing to pay the mortgage on the property and the real estate commission.

This is one of the reasons to always do the FINTRAC identification as soon as possible.

By asking for a Drivers’ License, you can usually determine right away that the seller will be here for closing.

When the seller signing the agreement is out of the country, make sure you ask about residency as soon as possible.

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