A recent Real Estate article by Bob Aaron showed that some Toronto Condominium builders are overcharging on estimated taxes for new projects. On one builders closing statement of adjustments, taxes were estimated at $3,970 but the final tax bill was only $2,107.92 resulting in an overestimation of $1,862.08.
The buyer had overpaid $720.00 on closing that would result in an estimated $155,500 in overpayments for this Condo project.
As part of the occupancy fees this same purchaser overpaid taxes of $931 for interim occupancy fees making his total overpayment to the builder $1,651.
If this is the average for this Condo, the total overpayments to the builder would amount to $350,000.
To read more visit http://www.aaron.ca/
Bob Aaron is a Toronto Real Estate lawyer and a board member of the Tarion Warranty Corp.
