Testing RE Lawyers

Here are three of my favorite questions to ask lawyers to check their expertise in RE.

1. What happens if I pay the capital gains tax at the wrong RDO?

Answer: It's tantamount to non-payment of taxes.

2. Our family corporation (Patag Realty Holdings Corp.) owns the family's ancestral house. Will the sale of this house be subject to VAT? It's been idle for ten years since my Lola passed away.

Answer: Yes, the sale will be subject to VAT.

3. If I want to incorporate a company to hold the family's several assets, do I have to pay 6% capital gains tax when I transfer them from our name to the company's?

Answer: No, you could do it via "Tax-Free Exchange for Shares."

If they give the wrong answers, it doesn't mean they're unqualified for the job. Other RE lawyers might be more up-to-date with RE's unspoken rules/regulations (i.e., those with actual and recent experience).

I deliberately kept the answers short. Your RE lawyer should be able to explain why the answers are so.

#eagleridge