Mom could lose home because of unexpected taxes

[SLM]

Mom could lose home because of unexpected taxes

A Sydney woman who may lose her home because of unexpected taxes is warning home buyers about the Nova Scotia capped tax system.
The tax department of the Cape Breton Regional Municipality said on average, property taxes increase almost 20 per cent after a property sells. That's because the provincial property tax cap does not transfer to the new owner.
In some cases, CBRM reports, taxes can double or triple for a new owner.
Lisa Riply said that’s what happened to her.
Ripley said she failed to ask what her taxes would be after the sale.
“I asked what they were at the time. I did not know anything about a capped tax. My mortgage would be approximately $600 a month and with the taxes it's going to be going up to $950,” she said.
She said one third of her monthly payment goes to taxes.
Barbara Kerr, regional director of the Nova Scotia Association of Realtors, said, once a property is sold, the tax cap no longer applies and the tax increase can be startling for the new owner.
“Oh yes it can be substantial. It can make or break the decision to buy a property. So once again, it's our job to caution them to be aware of all the facts when they purchase a home,” she said.
Ripley said she plans to appeal her assessment. If that doesn't work, she said she her children might have to sell.


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[CDNBear]

That's a little buyer beware for you.

When I saw your thread title, I was instantly reminded of the elderly around my neighbourhood who've been forced to sell because the new tashma-homes on the street have driven the taxes in the area up.

 

[SLM]

That's a little buyer beware for you.

When I saw your thread title, I was instantly reminded of the elderly around my neighbourhood who've been forced to sell because the new tashma-homes on the street have driven the taxes in the area up.

That's a lot buyer beware....but definitely something that the lawyer and/or realtor should have pointed out. It affects decisions made pre-purchase, including the purchase itself. Just like how in Toronto they have a municipal land transfer tax on top of the provincial, I believe they are the only municipality in the country to do so (but I could be wrong about that)....that's a significant cost that could affect someone's buying decisions.

No matter which way you turn though the government is there, reaching into our pockets. Which wouldn't be so bad if they didn't waste so damn much of it!

 

[CDNBear]

That's a lot buyer beware....but definitely something that the lawyer and/or realtor should have pointed out.

I agree. But if you're buying a home, wouldn't you educate yourself a bit? Meh, with all the ads on how awesome realtor's are, you'd think this would be something they would disclose.

It affects decisions made pre-purchase, including the purchase itself. Just like how in Toronto they have a municipal land transfer tax on top of the provincial, I believe they are the only municipality in the country to do so (but I could be wrong about that)....that's a significant cost that could affect someone's buying decisions.

Would there be a law about that kind of disclosure?

No matter which way you turn though the government is there, reaching into our pockets. Which wouldn't be so bad if they didn't waste so damn much of it!

So true.

 

[BornRuff]

That's a little buyer beware for you.

When I saw your thread title, I was instantly reminded of the elderly around my neighbourhood who've been forced to sell because the new tashma-homes on the street have driven the taxes in the area up.

A law like the one mentioned here would have likely prevented that woman from having to sell as it would have limited the amount that the rates could have gone up. It is a pretty nice law in that regard, but ya, new buyers need to be aware of that.

 

[SLM]

I agree. But if you're buying a home, wouldn't you educate yourself a bit? Meh, with all the ads on how awesome realtor's are, you'd think this would be something they would disclose.

Would there be a law about that kind of disclosure?

Yeah, I would educate myself as I would with most large purchases but having bought and sold property before, I might not think to research things too much further. With property taxes specifically, I'd be looking to the past years tax bill, and I've often seen that on MLS listings. I would think the lawyer/realtor should have disclosed this information.

 

[karrie]

That's highway robbery on the part of the government.

That's a little buyer beware for you.

When I saw your thread title, I was instantly reminded of the elderly around my neighbourhood who've been forced to sell because the new tashma-homes on the street have driven the taxes in the area up.

A common trick by developers who have city counselors in their pockets, to drive low income people out of areas they want to develop.

 

[BornRuff]

That's highway robbery on the part of the government.




A common trick by developers who have city counselors in their pockets, to drive low income people out of areas they want to develop.

Well, they are limiting the tax increases on existing home owners, but they are obviously making new home owners pick up the slack. So it is great if you have owned your home for 40 years, not so great if you are in the market for a new one.

 

[Tayman1975]

Scccccccccccccccccccccccccaaaaaaaaaaaaaaaaaaaaaaaaaammmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm.

 

[SLM]

Uhhhhhh-hhhhhuuuuuhhhhh. 8O

 

[taxslave]

That's a lot buyer beware....but definitely something that the lawyer and/or realtor should have pointed out. It affects decisions made pre-purchase, including the purchase itself. Just like how in Toronto they have a municipal land transfer tax on top of the provincial, I believe they are the only municipality in the country to do so (but I could be wrong about that)....that's a significant cost that could affect someone's buying decisions.

No matter which way you turn though the government is there, reaching into our pockets. Which wouldn't be so bad if they didn't waste so damn much of it!

If it wasn't for the wastage there would be no need to steal from the taxpayer.

 

[SLM]

If it wasn't for the wastage there would be no need to steal from the taxpayer.

The bitter circle of life. It's beyond out of hand at this point.

 

[karrie]

Well, they are limiting the tax increases on existing home owners, but they are obviously making new home owners pick up the slack. So it is great if you have owned your home for 40 years, not so great if you are in the market for a new one.

Taxes should be relatively even and equal. There shouldn't be a case of one person paying taxes 300% higher than another on the same street in homes of the same value, simply due to luck of timing.

 

[damngrumpy]

Nothing short of disgraceful. The Realtor should have made the information known
about what happens under the circumstance. Where are the real ethics these days
Oh I forgot we're talking about realtors and lawyers sorry I should have looked more
closely

 

[Goober]

Taxes should be relatively even and equal. There shouldn't be a case of one person paying taxes 300% higher than another on the same street in homes of the same value, simply due to luck of timing.

A bad law that has consequences for others. It was only a matter of time before it becomes more common place.
Cities only have limited taxation powers.
The Liberals under Chretien made drastic cuts to the Provinces to balance budgets- Provinces then cut funds, offloaded responsibilities to the Cities.
Cites to maintain services raise taxes.
Not sustainable.

 

[BornRuff]

Taxes should be relatively even and equal. There shouldn't be a case of one person paying taxes 300% higher than another on the same street in homes of the same value, simply due to luck of timing.

It seems to be based on the situation that CDNBear mentioned, where some old lady who has lived in the same home for many years has to move because they can no longer afford the taxes. The effects of trying to prevent that seem pretty dramatic though, if people are indeed only paying 1/2-1/3 of the going property tax rate.

If they really want to tackle that problem, it probably makes a lot more sense to make everyone pay the same basic tax rate and have some limited programs that people could apply for to help out in certain circumstances.

 

[Tecumsehsbones]

That's highway robbery on the part of the government.




A common trick by developers who have city counselors in their pockets, to drive low income people out of areas they want to develop.

They did it on Nantucket Island. It got popular with the rich, and when the fisherfolk whose families had been there since the 1600s refused to sell, they raised their property taxes until they couldn't afford them. Now it's all rich people.

As it should be.

 

[Goober]

It seems to be based on the situation that CDNBear mentioned, where some old lady who has lived in the same home for many years has to move because they can no longer afford the taxes. The effects of trying to prevent that seem pretty dramatic though, if people are indeed only paying 1/2-1/3 of the going property tax rate.

If they really want to tackle that problem, it probably makes a lot more sense to make everyone pay the same basic tax rate and have some limited programs that people could apply for to help out in certain circumstances.

I think Edmonton has a tax deferral program. Taxes deferred are paid upon sale of the house. Not sure how it works though.

 

[BornRuff]

Nothing short of disgraceful. The Realtor should have made the information known
about what happens under the circumstance. Where are the real ethics these days
Oh I forgot we're talking about realtors and lawyers sorry I should have looked more
closely

Still, I really can't see how she managed to get through the whole deal without anyone calculating her real property tax rate. Once upon a time I worked at a bank in mortgages and property taxes were always taken into consideration when approving someone.

 

[Goober]

Still, I really can't see how she managed to get through the whole deal without anyone calculating her real property tax rate. Once upon a time I worked at a bank in mortgages and property taxes were always taken into consideration when approving someone.

Full disclosure would finally rest with her own lawyer would it not.