Transfer Duties

A real estate transfer tax is a sum of money payable on the transfer of a property. It is the buyer of the property who is required to pay the transfer taxes. If there are multiple buyers, they are jointly liable for the payment of these taxes. All municipalities must collect a transfer tax on the transfer of any property located within their territory. (Act respecting duties on transfers of immovables, CQLR, c. D-15.1)

During a property transfer, the City of Pointe-Claire does not automatically reissue property tax bills. It is the responsibility of the new owner to ensure that the municipal taxes owed are paid.

Tax Base

The tax base corresponds to the highest amount among the following three amounts:

• The actual amount paid for the transfer of the property (excluding GST and QST)
• The amount of the consideration stipulated for the transfer of the property (generally, this is the amount stated in the deed of sale)
• The market value at the time of the transfer of the property (value listed on the assessment roll multiplied by the comparative factor for the fiscal year corresponding to the date of transfer)

Considered as consideration are any of the following elements:

• the value of any property provided on the occasion of the transfer
• the price indicated in the contract
• the liens, mortgages, and other charges encumbering the property

Comparative Factor

If taxation is based on the market value at the time of transfer, the value listed on the assessment roll must be multiplied by the comparative factor for the fiscal year corresponding to the date of transfer. The comparative factors for the City of Pointe-Claire for the following fiscal years are:

Calculation of Real Estate Transfer Tax for 2025

The calculation of the tax is carried out in accordance with the following parameters:

Here is an example of a calculation with a tax base of $1,100,000:

Amendments to the Act Respecting Duties on Transfers of Immovables

On March 18, 2016, following the provincial Finance Minister's 2016-2017 budget speech, various legislative amendments to the Act Respecting Duties on Transfers of Immovables came into force, addressing notably the following aspects:

• Exemption for property transfers between former de facto spouses;
• Exemption for transfers between closely related corporations;
• Exemption for transfers between a natural person and a corporation;
• Implementation of a disclosure mechanism for share transfers;
• Implementation of a disclosure mechanism for property transfers not registered at the registry office;
• Exemption for transfers involving international organizations.

For more details regarding these amendments, we invite you to consult the 2016-2017 Budget by visiting the site: budget.finances.gouv.qc.ca.

Taxpayers who are required to disclose a transfer of shares or a transfer of property can contact us at the following address: taxes@pointe-claire.ca.

Disclosure forms:

Exemption

A purchaser may be exempt from paying the transfer duty in the cases provided for by the Act respecting duties on transfers of immovables, RLRQ, c. D-15.1. The notary must include a mention in the deed of sale (or deed of transfer), so that the purchaser benefits from the exemption from the transfer duty according to the cases provided for in the law.

Main situations justifying an exemption:

• Transfer in a direct line, ascending or descending; (sale from father to son; from grandmother to granddaughter);
• When the assignor is an individual and the assignee is a legal entity of which at least 90% of the shares, issued and having full voting rights, are owned by this assignor;
• Transfer between spouses, whether married or common-law partners (as defined in the Act respecting duties on transfers of immovables). Same-sex spouses are included in this provision of the law.

Note that since March 18, 2016, to benefit from the exemption, common-law partners who separate due to the failure of their union have 12 months after their separation to complete the transfer. After this period, the transfer will not be exempt. Married spouses have 31 days after the date of the divorce judgment to complete the transfer if the divorce judgment does not assign the property to either spouse.

Several other exemption situations are provided for by the Act.

Supplementary Duty

The supplementary duty is a form of compensation for transfer duties charged to buyers whose transaction is exempt.

The Act respecting duties on transfers of immovables – RLRQ, c. D-15.1) sets the amount of supplementary duties based on the transferred values: