Selling Home Before 1 Year

[Patrizia]

Does anyone know how long after taking possession of a new home can the homeowner put it up for sale? Someone mentioned you have to wait a year before you can sell it. Thank you

[electricsky]

It all depends on the contract you signed. Have a look at it or consult your lawyer. In 99% of the case it shouldn't be an issue selling it immediately after taking possession.

[OttawaG]

And with the real estate price going up you will also have to work out the taxation on capital gain.

[Patrizia]

So I was told that you can sell anytime after taking possession but to avoid capital gains you have to wait until 1 year and it must be your primary resident.

[Canin]

From what I hear, if you have benefitted from rebate on taxes, CRA may come after you for that difference. Other than that I don't think there is anything preventing sale before a year is up.

[good2know]

There is no 1 year requirement.

[xdarrylx]

Originally Posted by good2know

There is no 1 year requirement.

Correct, common misperception.

If you build/buy a primary residence and a life situation occurs that forces you to sell (at any point...30 days after up 1yr), this is acceptable as long as CRA doesn't believe it was your intent allalong to build/buy and then flip for profit.

This is my understanding.

[Sarah2012]

It's the HST new housing rebate that comes with the 1yr deadline. The rebate comes with a stipulation that you must occupy the home as your primary residence in order to qualify.

From my research on the subject it appears to be a case-by-case thing with the CRA about whether they will take back the rebate you received.