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Ian Watt Personal Real Estate Corporation - Sotheby's International Realty Canada

Blog by Ian Watt

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The HST When Selling Your Vancouver Condo Isn't Your Realtors Fault or Problem

Vancouver Condo Real Estate Video Blog #584 - August 4, 2010 

The HST When Selling Your Vancouver Condo Isn't Your Realtors Fault or Problem 

Ian Watt video blogs about how since July 1, 2010 the new HST tax which is 12% on all real estate commissions (up from 5% GST) isn't your realtor's fault or problem. It is a fact that all sellers will have to be responsible for and its certainly not appropriate to ask your realtor to absorb some of those costs. If you want to voice your opinion or if you don't care for Ian's comments please email your feedback to ianwatt@ianwatt.ca and visit http://www.ianwatt.ca/RealEstateVideos for all the Ian Watt Real Estate Video Blogs.




Ian Watt: Hi, Good afternoon! It's Ian Watt in Downtown Vancouver. Of course now we have the HST in British Columbia and before we will pay 5% GST on goods and services which meant real estate commissions. Which we charge have 5 %. Now we have HST and it's 12%. So on a $32,000 dollar commission that split among the two realtors. The seller has to pay 12%. Now before July 1st that was 5% and 5% is about sixteen hundred dollars. Now it's about thirty eight hundred dollars tax that they have to pay. I know it's a shocker and I know a lot of people who are selling their places that's a tough pill to swallow considering it just happen July 1st. But think about this, it is the government it's not your realtor doing this. Unfortunately even though some of our clients ask us to eat that money. We just can't. That's not what we do it's a government tax. The HST is here it's 12% on the commissions that we earn. The commissions that are paid 12% tax. There's nothing we can do about it. Unfortunately your just gonna have to eat it if your selling real estate in Vancouver. My name is Ian Watt. If you have any questions. You can always email me at ianwatt@ianwatt.ca. Thank you very much and have a great day!