Selling a Brand New Property? Don’t Skip This Crucial Step
When listing a newly built property for sale, there’s one small yet critical detail that could cost you up to $50,000 in penalties if overlooked. Surprisingly, many sellers—and even some real estate agents—aren’t aware of this.
The Risk: Misreporting Property Tax on MLS
Because the property is brand new, the property tax has not yet been assessed by the local municipality. However, when listing on MLS (Multiple Listing Service), the system requires you to input a tax amount.
Here’s where the problem arises:
- Many sellers simply enter $0 because no assessment exists yet.
- But they fail to include a proper disclaimer clarifying that the tax amount is not yet assessed.
- This omission is a violation of MLS rules, and it can result in fines of up to $50,000.
Real-Life Example: Avoiding the Penalty
When I listed a brand new property, I made sure to include a clear disclaimer on the MLS listing, stating that the property tax had not yet been assessed. This one sentence protected the client from potential legal and financial consequences.
✅ Example Disclaimer:
“Property tax not yet assessed. Buyer to verify actual amount with municipality.”
Why Details Matter in Real Estate Transactions
Real estate is a game where small details make big differences. Omitting a single sentence could cost tens of thousands of dollars. Always:
- Double-check all MLS data fields.
- Include disclaimers when needed.
- Work with a professional who understands regulatory nuances.
Work With a Detail-Oriented Expert: Leo Shiu
If you’re selling a brand new property in Toronto or the GTA, make sure you have the right guidance. Leo Shiu is a top-tier Toronto Listing Agent, fluent in 8 languages and renowned for his attention to detail and negotiation expertise. Backed by a professional real estate team of over 100 agents, Leo ensures every document is accurate—because in real estate, every word counts.
📞 Contact Leo Shiu today to sell smarter, safer, and with confidence.