When you purchase a condo unit on the open market well in advance of the completion of the building, you will generally pay property transfer tax on the total amount you paid to acquire the property. The total amount includes any money paid for:
You may transfer the right to purchase the property to a related individual (doesn’t include brothers and sisters) before the property is registered at the Land Title Office without affecting the taxable amount.
If you transfer the right to purchase the property to someone who isn’t a related individual, property transfer tax is paid on the final purchase price of the unit, which includes all assignment amounts. Any profits made from an assignment of a pre-sale condo or strata unit must be reported on your income tax or capital gains.