Confused about condo registeration and property tax - Toronto

redflagposter983 wrote: ↑ Hello,

I am looking to by a resale condo, the condo I am looking at is fairly new. The listing agent says the condo is registered however, there's not property tax listed. I know property tax can take roughly a year for a new build condo for it to be assessed. But can the building be registered before it is assigned?

The answer is yes and no. Let's do no first.

No, the building doesn't have to be registered before taxes are assigned ( which is what I think you mean) because part taxes have already been prescribed by the city to the builder and passed onto the buyer even during interim occupancy. These taxes are for the land. The builder allocates this part of the tax to each unit holder.

Yes, it needs to be registered before taxes are assigned for the building and each unit. This can be as much as 2 years after the building has actually been registered as MPAC if this is Ontario, has to calculate the assessment values.

You should note that once you buy such a condo you will once MPAC's assessment is complete, receive a tax bill from the city that will include a calculation showing the full amount of the taxes for the unit and your proportionate share of the land and common elements from the time you were given interim possession less the land only charges.

It's to your benefit to protect yourself from being responsible for the pro-rata amount of those prior to your taking possession and can do so by having your Realtor and lawyer take the necessary precautionary steps.

thank you for answering. Just to clarify, if the building is registered does that mean the interim occupancy is complete? And the owner of the property is now waiting for the omit bills from the city? or is it until the property tax kicks in the owner will still have to pay the builder (interim)

redflagposter983 wrote: ↑ thank you for answering. Just to clarify, if the building is registered does that mean the interim occupancy is complete? And the owner of the property is now waiting for the omit bills from the city? or is it until the property tax kicks in the owner will still have to pay the builder (interim)

The city is going to send the supplementary/omitted tax bill to whomever they have on record as the owner once it has been assessed by MPAC and processed by the city. These bills can be sent out at any time.

Interim taxes are generally paid to the builder until such time as the city issues its tax bill.

Where a building has been registered you can always contact the city and see if you can submit your taxes to them to be held in a suspense account until they process your unit's roll number.

A word of caution with paying the city before they have an account for you is that they've been known to not be able to locate your payments even though they have them.

Speak with your Realtor, your lawyer and above all, manage it with the city yourself.