Understanding the legal landscape is crucial for anyone involved in the real estate industry in Ontario. Here are key legislative points that professionals should keep in mind:
Statute of Frauds
- Leases and Contracts: The Statute of Frauds mandates that all leases with a term exceeding 3 years and all contracts concerning real estate ownership or sale must be in writing. This requirement is to ensure that all terms are clearly documented and legally enforceable.
Canada’s Anti-Spam Legislation (CASL)
- Implied Consent: CASL permits implied consent for communication if a customer has made an inquiry within the last six months or there exists a business relationship within the previous two years.
- Penalties: For non-compliance, individuals can face penalties up to $1,000,000, while corporations can be penalized up to $10,000,000.
National Do Not Call List (DNCL)
- Customer Interaction: Similar to CASL, implied consent is valid if there has been an inquiry within the last six months or a business relationship with the brokerage within the last 18 months.
- Penalties: Individuals can be fined up to $1,500 and corporations up to $15,000 for violations.
Capital Gains Tax
- Effective Date: The capital gains tax was implemented in December 1971.
- Tax Rate: As of June 1, 2024, the inclusion rate for capital gains is 50%. This means half of the capital gain is taxable.
- Primary Residence: The maximum number of properties that can be designated as a primary residence by an individual or family unit is one.
- Capital Cost Allowance (CCA): The ‘half rule’ applies in the first year when a capital asset is acquired, meaning only half of the usual CCA rate is claimable.
Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
- Document Retention: Documents related to financial transactions must be retained for five years.
- Reporting Requirements: Suspicious transactions must be reported as soon as possible. Additionally, cash transactions involving $10,000 or more, or cryptocurrency transactions of equivalent value within a 24-hour period, must be reported.
