Statutory Declaration (Corporate Vendor) (Section 116)

Summary

This precedent is a "Statutory Declaration" delivered by the Vendor to the Purchaser. It confirms that the property being transferred is not in any way treated under the rules of the Ontario Family Law Act, R.S.O. 1990, c. F.3, as "matrimonial/family property." It also confirms the transfer is not in violation of s. 116 of the Income Tax Act (Canada), R.S.C. 1985, c. 1 (5th Supp.), which applies to withholding certain amounts from the closing proceeds as a "non-resident" tax obligation. This precedent contains practical guidance and drafting notes. A "Statutory Declaration" in Ontario is the equivalent of an "Affidavit", "Sworn Statement", or "Statement made under Oath" in other jurisdictions. It is a solemn and serious communication by, in this case, the Vendor to the Purchaser in a transaction laying out certain facts and statements which the Purchaser may rely upon as if they had been given "under oath." In other words, knowingly lying or misrepresenting the truth under a "Statutory...