Don’t Forget Your Rebate!!

Many real estate investors end up leaving a significant amount of money on the table after their new purchase, often not becoming aware of their blunder until well after the fact.

If an end-user is purchasing a brand new property, they’re eligible for an HST rebate—which the developer holds back on the property buyer’s behalf.  An investor, however, is required to pay the HST upfront and then claim it back after closing through the New Residential Rental Property Rebate (NRRPR).

Investors are entitled to the NRRPR, for which they must apply within two years, if their property is leased out for at least one year. In order to obtain the rebate, a Statement of Adjustment and a rental agreement for at least one year are required as proof. 

Whether they don’t file correctly, wait too long, or don’t have the proper terms and agreements in place, many investors end up losing out on the rebate.  In some cases, in-house sales staff just aren’t trained on explaining the nuances of the program to investor buyers.

Prior to completing your purchase make sure to speak to your accountant and lawyer regarding the NRRPR.  The rules surrounding the rebate are very precise and need to be followed to the letter.

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