Section 263.4 — Excise Tax Act: Definition of agreement of sale

For the purposes of this section, agreement of sale , in respect of a residential complex, means an agreement that is entered into by a builder of the residential complex or by a cooperative housing corporation that owns the residential complex and under which the following is supplied by way of sale: in the case of a builder, the residential complex, or a building or part of a building in which a residential unit forming part of the residential complex is located; or in the case of a cooperative housing corporation, a share of the capital stock of the cooperative housing corporation, the holder of which is entitled to possession of a residential unit located in the residential complex. For the purposes of this section, a group of individuals and a particular individual are not dealing with each other at arm’s length if the particular individual is a member of the group, or the particular individual is not dealing at arm’s length with one or more members of the group; and a particular group of individuals and another group of individuals are not dealing with each other at arm’s length if one or more individuals are members of both groups, or one or more members of the particular group are not dealing at arm’s length with one or more members of the other group. For the purposes of subsections (4) and (5) and paragraphs 254(2.1)(b), 254.1(2.1)(b) and 255(2.1)(b), if an agreement of sale in respect of a residential complex is entered into before March 20, 2025 and the agreement of sale is later varied, altered or assigned such that it is considered to be entered into after March 19, 2025, the agreement of sale is deemed to have been entered into before March 20, 2025. For the purposes of subsections (3) and (5) and paragraphs 254(2.1)(b), 254.1(2.1)(b) and 255(2.1)(b), if before March 20, 2025, a particular person that is a builder or a cooperative housing corporation and a particular individual enter into a particular agreement of sale in respect of a particular residential complex, after March 19, 2025, the particular person and the particular individual, either directly or indirectly, terminate the particular agreement of sale, and the particular individual, another individual that is not dealing at arm’s length with the particular individual or a group of individuals that is not dealing at arm’s length with the particular individual enters into another agreement of sale in respect of the particular residential complex or in respect of another residential complex with the particular person, another person that is a builder or a cooperative housing corporation and that is not dealing at arm’s length with the particular person, or if the particular person is a builder, another person that is a builder of the particular residential complex, and the entering into of the other agreement of sale may not reasonably be considered for the particular individual, the other individual or the group, as the case may be, to have been undertaken or arranged primarily for bona fide purposes other than to obtain a rebate under any of subsections 254(2.1), 254.1(2.1) and 255(2.1), the other agreement of sale is deemed to have been entered into before March 20, 2025. For the purposes of subsections (3) and (4) and paragraphs 254(2.1)(b), 254.1(2.1)(b) and 255(2.1)(b), if before March 20, 2025, a particular person that is a builder or a cooperative housing corporation and a particular group of individuals enter into a particular agreement of sale in respect of a particular residential complex, after March 19, 2025, the particular person and the particular group, either directly or indirectly, terminate the particular agreement of sale, and the particular group, an individual that is not dealing at arm’s length with the particular group or another group of individuals that is not dealing at arm’s length with the particular group enters into another agreement of sale in respect of the particular residential complex or in respect of another residential complex with the particular person, another person that is a builder or a cooperative housing corporation and that is not dealing at arm’s length with the particular person, or if the particular person is a builder, another person that is a builder of the particular residential complex, and the entering into of the other agreement of sale may not reasonably be considered for the particular group, the individual or the other group, as the case may be, to have been undertaken or arranged primarily for bona fide purposes other than to obtain a rebate under any of subsections 254(2.1), 254.1(2.1) and 255(2.1), the other agreement of sale is deemed to have been entered into before March 20, 2025.