FAQ – Whiteshell Cottages

Frequently Asked Questions

Are all properties in the Whiteshell on leased land?

Not all, but in the majority of cases Whiteshell properties are leased from the Province of Manitoba.

Is there land transfer tax on a cottage sales in the Whiteshell?

No. Because the land is leased, cottage properties are not subject to land transfer tax.

Will my cottage sale be subject to capital gains?

Any real estate that isn’t your personal residence could be subject to capital gains tax. Your accountant
is best to be consulted in this matter.

Are property taxes applicable?

No. Your annual lease fee is the amount that you will pay to the province that goes towards park
operations.

What about financing?

On leased land, your lender will give you a collateral loan as opposed to a mortgage. The mortgagee will
take an assignment of the lease as security for the loan. The payment schedule is similar to a mortgage.

What is the difference between leased land and owning title to the land?

From a value standpoint, there is virtually no difference between purchasing a cottage on leased land or
titled land. The value of assuming the lease is deemed as valuable as owning the land in fee simple
ownership. Additionally, whether you own the land or lease it, you will be under the same park
regulations.

When will I receive the funds from the sale of my cottage?

The monies from the sale price of the cottage will be held in the seller’s lawyer’s trust account from the date of possession until such time that the lease comes back in the buyer’s name, whereupon funds will be dispersed.

What’s typically included in a cottage sale?

More often than not, but not always, the larger furniture items will be included in the sale. A complete
list of inclusions will accompany the offer.