Restrictions During First Year the Property is Owned

Occupancy Requirement
The purchaser must occupy the residence as his or her principal residence within92 days of the transfer being registered at the Land Title office.
The purchaser must then continue to use the residence as his or her principal residence for at least one year after the date the transfer was registered.
At the end of the first year the ministry will send a letter to the purchaser asking for information to confirm that the property is still his or her principal residence.
A purchaser who ceases to maintain the residence as his or her principal residence prior to the first anniversary of the registration date may be eligible for a rated exemption based on the date the purchaser moved off the property.

Exceptions
If the purchaser dies prior to the first anniversary of the registration date, the occupancy requirement is no longer imposed and the exemption continues to apply.
The exemption also continues to apply if the property is transferred in accordance with a court order or separation agreement under theFamily Relations Act.Construction Requirement.
If the property purchased is vacant land, and the purchaser wants to claim the first time home buyers' exemption, a principal residence must be built on that land within one year after the transfer is registered, and the purchaser must then reside on the property for the remainder of that year to receive the full exemption.

To be eligible for the full exemption, the fair market value of the land plus the cost to build the home cannot exceed the threshold amount of $425,000.A partial exemption is available where the total value of the land plus the cost of the improvement exceeds the maximum allowable fair market value by up to$25,000.