There are many reasons why a purchaser may decide to take title of a property in the name of a corporation. However, when a corporation is involved as a registered title holder, the closing process can (possibly) be more intricate for buyers.

If you are considering buying a residential property with your corporation, here are some of the numerous factors to consider:

• Financing: Securing financing for a property through a corporation can be a lengthier process in comparison to obtaining financing for individual buyers, as the lender may require additional due diligence. Not all lenders offer corporate property loans, and the terms may differ. Consult with a financial institution to explore your financing options.

• Tax Implications: Buying property through a corporation can have tax implications. This may include and is not limited to land transfer taxes, capital gains taxes, etc., understanding your tax obligations early in the transaction process can be essential for financial planning. Consult a tax professional to assess the best approach for your corporation.

• The Future of Your Corporation: It is important to consider future changes that may affect your corporation's ownership. This could include mergers, acquisitions, future shareholders, or changes in corporate structure. It is important to ensure that your title registration decision aligns with long-term corporate goals.

It is important to remember the process of buying residential property with your corporation as the registered owner demands preparation. By seeking professional advice and understanding the legal and financial implications before you enter into an Agreement of Purchase and Sale, you pave the way for a smooth purchase that supports your corporation's future endeavors.

If you have any legal questions regarding registering your corporation on title of your property, please do not hesitate to contact us at (905) 270-6660 or e-mail us at: Info@kormans.ca.

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