Clearance Certificates Explained: The Tax Risk Every Home Buyer Should Know | EP407

<p>What happens if you buy a home, close the deal, and then discover the seller was a non-resident—and the CRA says money is still owed?</p><p><br></p><p>In this episode of The Real Estate Podcast, Ariel Kormendy and Adrian Trott break down clearance certificates, why they matter when a non-resident sells Canadian real estate, and how the issue can affect both sellers and buyers.</p><p><br></p><p>They discuss the potential 25% holdback, how clearance certificate delays can interfere with closing, real-world situations involving mortgages and negative equity, and the due diligence buyers, sellers, and real estate agents should be doing before a deal becomes a problem.</p><p><br></p><p>They also explain how closing dates and Agreement of Purchase and Sale clauses can potentially be structured to give everyone enough flexibility while still protecting the buyer.</p><p><br></p><p>If you&#39;re buying or selling Canadian real estate—especially when a non-resident owner is involved—this is something you should understand before closing day.</p><p><br></p><p>This podcast is for general informational purposes and should not replace advice from a lawyer, accountant, or other qualified professional.</p><p><br></p><p>The discussion specifically covers the potential 25% holdback, the risk to buyers, certificate-processing timelines, closing complications, and protective deal structures.</p><p><br></p><p>VIDEO SECTIONS &amp; TIMESTAMPS</p><p>0:00 – Intro</p><p>2:26 – What is a clearance certificate?</p><p>6:31 – Why a 30-day closing may not be enough</p><p>7:20 – How clearance issues can kill a deal</p><p>9:11 – Liens, mortgages and negative equity</p><p>11:18 – Homeowners leaving Canada while owing more than their home is worth</p><p>19:49 – How one failed closing can create a domino effect</p><p>22:15 – Realtors making too many assumptions</p><p>22:38 – The closing-date mistake agents should avoid</p><p>25:06 – Clearance certificate advice for buyers</p><p>25:34 – How to identify a non-resident seller</p><p>25:52 – How long a clearance certificate can take</p><p>27:09 – Protecting buyers with the right clauses</p><p>28:52 – Outro/recap</p><p><br></p><p>Watch on YouTube:</p><p><a href="https://youtube.com/kormendytrott" target="_blank" rel="noopener noreferer">https://youtube.com/kormendytrott</a></p><p>Listen on Spotify:</p><p><a href="https://open.spotify.com/show/1pwncyet9NydbgTmx5D21k" target="_blank" rel="noopener noreferer">https://open.spotify.com/show/1pwncyet9NydbgTmx5D21k</a></p><p><br></p><p>Linktree:</p><p><a href="https://linktr.ee/kormendytrott" target="_blank" rel="noopener noreferer">https://linktr.ee/kormendytrott</a></p><p><br></p><p>Instagram:</p><p><a href="https://instagram.com/kormendytrott" target="_blank" rel="noopener noreferer">https://instagram.com/kormendytrott</a></p><p><br></p><p>YouTube:</p><p><a href="https://youtube.com/kormendytrott" target="_blank" rel="noopener noreferer">https://youtube.com/kormendytrott</a></p><p><br></p><p>Facebook:</p><p><a href="https://facebook.com/kormendytrott" target="_blank" rel="noopener noreferer">https://facebook.com/kormendytrott</a></p><p><br></p><p>X:</p><p><a href="https://x.com/kormendytrott" target="_blank" rel="noopener noreferer">https://x.com/kormendytrott</a></p><p><br></p><p>LinkedIn:</p><p><a href="https://linkedin.com/company/ktrealty" target="_blank" rel="noopener noreferer">https://linkedin.com/company/ktrealty</a></p><p><br></p><p>TikTok:</p><p><a href="https://tiktok.com/@kormendytrott" target="_blank" rel="noopener noreferer">https://tiktok.com/@kormendytrott</a></p><p><br></p><p>The Kormendy Trott Team was formed in 2011 by Ariel Kormendy and Adrian Trott. Originally a team of two in Milton, Ontario, KT has grown into a full-service real estate group serving Halton Region, Peel Region, and the Greater Toronto Area.</p>