Transfer Duties

Under the Act Respecting Duties on Transfers of Immovables (R.S.Q., c. D-15.1), all municipalities must collect duties on the transfer of any immovable located within their territory.
 
Duties on transfers of immovables are payable in one instalment from the 31st day after the statement is issued. The transferee may be exempted from paying transfer duties ONLY in cases specified under the Act. In order to obtain an exemption, the transferee’s notary must include a note in the deed of sale indicating the article of the Act that covers the requested exemption. The City of Brossard reserves the right to request documents justifying the exemption mentioned in the deed of sale.
 
For additional information, please contact Services Brossard.

 

Amendments to the Act Respecting Duties on Transfers of Immovables

­­­­­­­­­­­­­­­­­­­­­­­Mechanisms for Disclosure

On March 18, 2016, one day after the provincial minister of finance's 2016-17 budget speech, various legislative changes came into force with respect to the Act Respecting Duties on Transfers of Immovables, dealing in particular with the following aspects:

  • exemption for transfers of property between ex-common law partners;
  • exemption for transfers between closely related corporations;
  • exemption for transfers between a physical person and a legal person;
  • establishment of a disclosure mechanism for the transfers of shares;
  • establishment of a disclosure mechanism for transfers of buildings that are not registered with the Bureau de la publicité des droits (the registry office);
  • exemption for transfers involving international organizations.
For more details concerning these changes, we invite you to refer to the provincial minister of finance's 2016 Québec Economic Plan (budget 2016-2017).

Taxpayers who are obliged to disclose a transfer of shares or transfer of a property may contact us at the following address: direction.finances@brossard.ca.

Disclosure forms:


Calculation Method
The calculation method is determined based on the Act Respecting Duties on Transfers of Immovables.

The basis of imposition for transfer duties is the greatest of the following three amounts:
  • The amount of the consideration furnished for the transfer of the immovable
  • The amount of the consideration stipulated for the transfer of the immovable
  • The market value of the immovable at the time of its transfer

The market value of the immovable at the time of its transfer is obtained by multiplying the market value of the unit or part entered in the assessment roll by the comparative factor of the roll currently in effect.

Example:     value in roll     X    factor  =    market value
                       $250,000     X      1.04   =      $275,000

Transfer duties are calculated based on the basis of imposition, according to the following rates:
  • 0.5% on the first $50,400
  • 1.0% on the portion from $50,401 to $251,800
  • 1.5% on the portion exceeding $251,800
Example
In the case of a property purchased for the amount of $275,000 whose value in the assessment roll is $240,000 and comparative factor is 1.04, the basis of imposition will be the greatest of the following amounts:
The amount of the consideration furnished for the transfer of the immovable: $275,000
The amount of the consideration stipulated for the transfer of the immovable: $275,000
The market value of the immovable at the time of its transfer: $249,600

The basis of imposition is therefore $275,000.

As a result, the amount of transfer duties will be calculated in the following manner:
 
Portion from $0 to $50,400 0.50% $252,00
Portion from $50,401 to $251,800 1.00% $2,013,99
Portion exceeding $251,800, i.e., $23,201 1.50% $348,02
Total:   $2,614,01

New owner

The parties involved in a real estate transaction at the notary are responsible for tax adjustments between them. Because of processing delays in tax roll updating, the municipal tax invoice is occasionally issued in the name of a former owner. This does not exempt you in any way from the obligation to pay the assessed property taxes. It is your responsibility to check with your notary or the city about taxes payable.