If I use a power of attorney to complete a real estate purchase, is land transfer tax still owed?

Yes, land transfer tax is determined by the underlying real property transaction — not by how the buyer signs or completes the closing. Using a power of attorney (POA) to close a purchase does not affect the LTT obligation. If a transfer of land is being registered in Ontario, LTT is owing by the buyer regardless of whether the buyer signs personally or through an attorney under a POA.

In a POA closing, the attorney (the person holding the power of attorney) signs the transfer documents and the LTT affidavit on behalf of the buyer. The attorney is acting as the buyer's agent and the LTT obligation remains the buyer's. Any first-time buyer rebate that the buyer is entitled to is still available in a POA closing.

One practical concern with POA closings is that the attorney must have authority to complete the specific transaction. Using a POA for real estate requires careful drafting of the POA document to ensure it is sufficient. If you anticipate being unable to attend your closing, discuss the use of a POA with your real estate lawyer well in advance.