According to Canada Revenue Agency documentation, in an Agreement of Purchase and Sale, either the Buyer or Seller could be on the hook for HST obligations if the property was used as or is intended to be used as a short term vacation rental. The risk of tax liability is even higher when one Party to the Purchase is a Non-Resident to Canada. A contract clause is one way to ensure the tax obligation falls on the other party, but like a home inspection, you need the added reassurance of an expert to assist with the due diligence to verify that the property has not been used for short term rental activity in the past. Harmari STR has a special Due Diligence report which we can provide to you as the Buyer or Seller, or your client if you are a Broker or Attorney representing your client. What is required are the address, and current photos of the property to be able to visually compare to past and present short term rental listings in the area. Below we provide an overview of what is covered in this verification service in the event affirmative information is found regarding short term rental activity at the property.
- live calendar blocked dates to show the property was available for rent going forward 6 months
- archived calendar data can show as far back as 2019 what the calendar looked like
- minimum night stay advertised on the rental (to prove it was below 30, 60, 90 or 180 minimum nights)
- guest reviews and dates to show comings and goings
- activity chart showing timeline of when listing was active or inactive
Request a Due Diligence Report today for your Property before the deal closes for an extra reassurance!