Podcast Episode 99:
“Happy Assumptions & Corporate Rollovers.“
This episode of Tales from the Trenches contains two stories about transfers: one is about transferring mortgages and the other is about transferring property.
In theory, many mortgages are assumable, but in practice lenders in Alberta (and elsewhere) have been tightening up on their regulations. Some lenders just won’t allow it at all, while others require full re-qualification. This Tale explains how a real estate investor got the bank to agree to a mortgage assumption after he held a property for just seven days!
Rollovers are when a property is transferred from your personal name to your corporation or vice-versa. My Edmonton legal firm, RMLO Law LLP (formerly Ritchie Mill Law Office), helps people with rollovers all the time. But we always caution our clients to get additional accounting advice because capital gains might be an issue. In this Tale, the example is an investor who rolled over a property and had to pay the Canada Revenue Agency (CRA) $30,000 dollars in tax…
Download the audio file HERE.
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For all your Alberta real estate law needs, contact Barry and he’ll sort you out.