Who is the developer of Humber River Estates?
Who are the Main Shareholders?
What is the concept of the Humber River Estates Resort Development?
When will the Resort open?
What kind of facilities will be available at Humber River Estates?

Newfoundland

What is the climate of Newfoundland?
What is the cost of living in Newfoundland?
What language is spoken in Newfoundland?
As a non-national, can I buy a business in Newfoundland?
If I choose to live in Newfoundland can I work there?
Do I have to make a will in Newfoundland?
What is the policy on household pets?
Can I apply for permanent residence?

Taxation

What property duties and other costs are involved with the purchase of Real Estate in Newfoundland?
Is VAT payable on property and if so at what rate?
Is Capital gains tax payable on selling the property?
Is it easy to re-patriate the proceeds from the sale of my property?
Are there any Estate Duties in Newfoundland?
Is there an Annual Property Tax?
What amount or rate of stamp duty is payable in Newfoundland?
What Income taxes are applicable to individuals?

Payment Terms

In what currency are payments made?
Can I get finance for the purchase of a property?
What are the payment terms for purchasing a building plot?
What are the payment terms for purchasing a building plot and a Chalet?

Construction

If I buy a plot when do I have to start constructing my house?
How long will the construction take?
Are there any designs I can choose from?
Can changes be made to the specifications and layouts of these houses?
Can I buy more than one plot on which to build a house?
What construction guarantees are available?
Will there be heating and air-conditioning systems?
Will there be a satellite/cable TV system?
Will the properties be insulated (walls/windows)?
Will there be a security system in the properties?
Are the properties at Humber River Estates freehold?
Are there any legal safeguards for foreign investors?
Can I resell my property?
Who supplies the water and what does it cost?
Is the water drinkable?
Who supplies the electricity and what does it cost?
Can I have a private telephone and fax lines installed?
What does it cost and how long does it take?
What type of sewage systems is used?
Are the road systems lit at night?
What are the annual running costs for each type of property?
Will all contract documents be in English?

Skiing

What skiing facilities are available to property owners at Humber River Resort?
What costs are involved?

Miscellaneous

How close are the nearest medical practices?
Where is the nearest pharmacy?
How much does an annual salmon fishing licence cost?
When is the salmon fishing season?
How many licensed salmon rivers are there in Newfoundland?

Humber River Resort

Who is the developer of Humber River Resort?
The developer of Humber River Estates is a company called RTGO Developers Inc. The company is based in Newfoundland, Canada and was incorporated in May 2000..

Who are the Main Shareholders?
RTGO Developers Inc is wholly owned by Ron Thomas of Deer Lake, Newfoundland and Greg Osmond of Corner Brook, Newfoundland. Ron Thomas has more than 20 years experience in the construction industry and land development. Greg Osmond has more than 10 years experience in the business consulting field in the areas of tourism marketing and business development. Both owners are long time residents of the area and are dedicated to its long term prosperity.

What is the concept of the Humber River Estates Resort Development?
The development concept of Humber River Estates is an exclusive Canadian outdoor experience destination. With three season activities including alpine skiing, championship golfing, fishing, snowmobile riding, hiking, and water sports, the resort will offer international class accommodation in the privacy of a Canadian forest retreat. Most unique to the Humber River area, however, is the culture of Newfoundland and its inhabitants who are renowned in Canada for their friendliness and love of merriment.

When will the Resort open?
Humber River Estates will be open in 2006 for owners and guests and will begin operations at that time. The main complex is scheduled to be opened by the end of 2007.

What kind of facilities will be available at Humber River Resort?
Humber River Estates offers an exquisite location overlooking Deer Lake set in the middle of the beautiful Humber Valley. Humber River Estates is located just five kilometres from the Deer Lake Airport and next to many world class attractions including Gros Morne National Park, the L'Anse aux Meadows Viking Site, Marble Mountain Ski Resort, three area golf courses and much more.

The Resort offers 41 exclusive one-acre wooded lots including 11 on the waterfront. Each property owner has access to the waterfront through a common area that includes a boat launch, a Beach House and floating docks. Launching services and storage areas for boats are also available to property owners.

Humber River Estates offers the option of becoming part of a rental pool. If an owner choose to participate in this rental pool Humber River Estates will rent the property for the owner while the owner is away.
This is often a great way to gain income from the property with no hassle for the owner since Humber River Estates will look after all the details of promoting, renting and maintaining the property.

Entertainment and activities will be centred in the main complex. Championship golf can be played very close by at the Humber Valley Resort.

The best alpine skiing in Eastern Canada is available at Marble Mountain, 30 minutes away from the Resort.

Water sports will be available at the Resort on the abutting 20 kilometre Deer Lake and Humber River which has sandy beaches, clean water, and little traffic.

Hiking trails will be abundant on site, or guests can take advantage of the developed trails throughout the 70 kilometre Humber Valley.

Perhaps the most popular Humber Valley activity will be world class snowmobile touring on over 1200 kilometres of groomed trails throughout the Valley and its surrounding low lying mountains. The area also offers some of the best wilderness snowmobiling in the world.

Newfoundland

What is the climate of Newfoundland?
Western Newfoundland has a temperate climate with a summer average daytime high of 21 celcius and winter average of –5 celcius. Rainfall is moderate and while the Spring season is shortened by a longer winter, the Fall season is also elongated beginning in mid-September and stretching through November. The winter in Humber River area benefits from moist ocean air coming over the low mountains directly into the Valley and giving it the highest natural snowfall of any major ski hill in Eastern Canada with an annual average in excess of 5 meters.

What is the cost of living in Newfoundland?
The cost of living in Newfoundland is relatively inexpensive by US and European standards. While most major North American retail chains are represented, a litre of gasoline would cost about $1.20 CAD or a quality three course dinner would cost approximately $40 CAD.

What language is spoken in Newfoundland?
The predominant and official language of Newfoundland is English, although you will find many varieties and dialects spoken in the Province. There is also a small, indigenous French population.

As a non-national, can I buy a business in Newfoundland?
There is no restriction on a non-national’s ability to purchase a business in Newfoundland; however, it should be noted that your business would likely be deemed to be a foreign corporation and would be taxed at the highest level (approximately 50%). A foreign corporation is defined as one where the majority of the shareholders or directors are not Canadian nationals.

You should also be aware that the Province of Newfoundland and Labrador has signed an Agreement with the Federal Government of Canada allowing the Province to nominate persons who may be of significant economic and industrial benefit to the Province for permanent resident status. One of the methods of gaining nomination from the Province of Newfoundland and Labrador would be to commit to either purchase or commence a business in which you will be involved in the day to day management. This would have the added benefit of allowing for expediting processing for permanent resident visa and ability to immigrate to Canada on a full-time basis. At that point, tax issues would be treated the same as a Canadian national.

If I choose to live in Newfoundland can I work there?
Barring permanent resident application, as a non-national you could only work within Canada with requisite work visa. These can be obtained through the Federal Government of Canada if it can be demonstrated generally that you have job skills not available locally or you have a standing offer of employment which cannot be satisfied locally.

Do I have to make a will in Newfoundland?
No, a will is not required; however, should you choose not to make a will any property you own in Newfoundland and Labrador may be distributed pursuant to the terms of the Intestate Succession Act which provide for distribution of property for persons dying intestate. Depending upon the jurisdiction in which you reside, it is possible that a valid will registered there may also be sufficient to cover disposition of Newfoundland situated assets.

What is the policy on household pets?
Household pets are allowed.

Can I apply for permanent residence?
Yes you can. The quickest and easiest method for application for permanent resident status is through the Newfoundland Provincial Nominee Program discussed above. Under this Program you have to file with the Government of Newfoundland and Labrador a commitment to either purchase or commence a business in which you will be involved in the day to day management. On the basis of this commitment, the Government of Newfoundland and Labrador will, if you are otherwise eligible, nominate you for permanent resident status in Canada. Pursuant to the Agreement between the Province of Newfoundland and Labrador and the Government of Canada, once Newfoundland has made this selection or nomination, the Federal Government is only to conduct background checks for security and medical issues. Assuming everything is in order, a visa can be obtained within 12 to 24 months of initial application with the Province of Newfoundland and Labrador as timing varies from embassy to embassy. If you require more information on the Newfoundland Provincial Nominee Program, we will be more than happy to provide same.

Taxation

What property duties and other costs are involved with the purchase of Real Estate in Newfoundland?
There will be some minor registration costs on the purchase but these are not significant. Registration costs for deeds of conveyance and mortgage documents are assessed at 4¢ per $1,000.00 plus $51.00.

Is VAT payable on property and if so at what rate?
Newfoundland’s version of VAT is HST or Harmonized Sales Tax. The HST is charged at a rate of 15% of the purchase price. Should the chalet owner be using their chalet in the rental pool and also become a HST registrant with Revenue Canada before the sale takes place, this HST must not be paid. On the future sale of their chalet, the owner would have to charge the HST and pay it into Revenue Canada.

Is Capital gains tax payable on selling the property?
If the sale price of the property is more than the original cost, capital gains tax will be payable. At present in Canada, this would equate to approx. 25% of the total gain.

Is it easy to re-patriate the proceeds from the sale of my property?
Revenue Canada requires that any person doing business and earning income in Canada must pay Canadian income tax. To ensure a non-resident pays the required tax on any income or gain, a system of withholding taxes is used. Should the chalet be sold at a gain, the purchaser would be required to withhold from the gross proceeds a percentage of the proceeds and remit them to Revenue Canada. The percent to be withheld is determined by the seller’s place of residence and could range from 15% to 25%.

There are certain mechanisms available to reduce or eliminate this tax requirement, but they are restrictive and must be addressed case by case. If these mechanisms do not work, when a Canadian tax return is filed the seller will receive a refund of all the taxes paid upfront less the taxes owed on the actual gain. To assist you with Canadian tax issues can refer you to a local Canadian tax advisor with experience dealing with such issues.

Are there any Estate Duties in Newfoundland?
At present, there are no estate duties.

Is there an Annual Property Tax?
Yes, there will be property tax on the property which will be payable to the Town of Deer Lake. This tax is part of a province wide property tax system that is based upon the assessed value of your property as determined by a provincial government property assessor. Assessments are normally lower than the market value of the property. Annual property taxes cover the cost of the water & sewer system, road maintenance, snow clearing, garbage collection and other municipal services. A purchaser could expect property taxes to range between $3000 and $4500 per year.

What amount or rate of stamp duty is payable in Newfoundland?
No such tax exists in Newfoundland.

What Income taxes are applicable to individuals?
There are Federal and Provincial income taxes payable on income earned in Canada. Both are calculated and paid together in one tax return. Taxes are payable on any income earned in Canada. If the chalet owner was part of the Resort’s rental pool and earned income from this arrangement, this income would have to be reported and taxes paid on the return. The rate of tax is based on the residency of the chalet owner and if there is a tax treaty with that country. Any Canadian taxes paid may help reduce the taxes due in the owner’s country of residence should a tax treaty exist with that country.

Payment Terms

In what currency are payments made?
Canadian dollars, but they can be made in your home currency provided that it is converted to Canadian funds on the date monies are paid and that after conversion funds are sufficient to pay the purchase price.

Can I get finance for the purchase of a property?
We are in the process of making necessary arrangements with financial institutions in Newfoundland for financing the purchase in Humber River Resort.

What are the payment terms for purchasing a building plot?
The purchase price for the building lot alone is due upon date of closing. On that date, a deed of conveyance will be provided to the owner or the owner’s representative for registration and funds are due to Humber River Estates in full for the lot. Purchasers are normally required to start building a chalet on their property within six (6) months although extensions may be permitted on a case by case basis.

What are the payment terms for purchasing a building plot and a Chalet?
Payment terms for purchasing building lot and a chalet are as follows:

30% of construction price upon signing of building contract,
30% upon chalet being weatherized,
30% upon substantial completion,
10% after substantial completion

Construction

If I buy a plot when do I have to start constructing my house?
Construction must start within six (6) months of the date of closing which is the date the deed of conveyance is provided to the purchaser or his representative. If the purchaser fails to initiate construction with the resort within six (6) months, Humber River Estates has the option to repurchase the land and retain 25% of the purchase price of the plot as damages.

How long will the construction take?
Construction should take between fourteen (14) weeks and eighteen (18) weeks.

Are there any designs I can choose from?
Humber River Estates currently has ten (10) different designs which the buyer can choose from. The Resort will also price and construct a design of the purchaser’s choice, provided that Humber River Estates reserves the right to refuse construction of any chalet which it deems does not fit into the general look and concept of the Resort.

Can changes be made to the specifications and layouts of these houses?
Humber River Estates will entertain changes in specifications to the layout of the chalets provided that (1) any extra costs associated with the changes will be borne by the purchaser and (2) any change in specifications must be approved by Humber River Estates and shall not detract from the overall appearance and usefulness of the chalet.

Can I buy more than one plot on which to build a house?
Yes.

What construction guarantees are available?
Each chalet is warranted according to the provisions of the Canadian government sponsored Atlantic Home Warranty. Any defects in the first year are repaired and the structure of the house is covered for seven (7) years.

Will there be heating and air-conditioning systems?
Yes. A variety of heating and cooling systems are available. In most well insulated houses in Newfoundland air conditioning is generally not required, however, it is available as an option if desired by the purchaser.

Will there be a satellite/cable TV system?
Yes. Both systems are available within the development.

Will the properties be insulated (walls/windows)?
Yes, each home will be very well insulated with a minimum of R20 insulation in the walls and R40 in the ceilings to ensure that the home is warm in the winter and cool in the summer. All windows and doors used will have double pane or low-E glass to ensure the best possible energy efficiency.

Will there be a security system in the properties?
Yes, all units will have a basic security system included in the price with the option to upgrade the system as owners see fit. Monitoring fees will be the responsibility of the owner’s and will cost $40 CAD per month.

Are the properties at Humber River Estates freehold?
Yes, all properties at Humber River Estates are all freehold and free of any encumbrance.

Are there any legal safeguards for foreign investors?
Foreign investors receive the same safeguards under the law as any Canadian citizen.

Can I resell my property?
Yes you can.

Who supplies the water and what does it cost?
Water will be supplied to the chalet from the Town of Deer Lake municipal water supply which is maintained and monitored by the Town of Deer Lake.

Any problems with the water supply system occurring within the purchaser’s plot will the expense of the purchaser.

Is the water drinkable?
Yes, all chalets have an endless supply of good drinking water from the largest lake in Newfoundland, Grand Lake. This water is chlorinated and monitored by the Town of Deer Lake and the provincial government’s Department of Environment Water Resources Division.

Who supplies the electricity and what does it cost?
Electricity is supplied by Newfoundland Power. Hydroelectric costs in Canada are low by western standards given the abundance of hydro produced in Canada.

Can I have a private telephone and fax lines installed?
Yes. There is currently digital telephone service to the Resort. Humber River Estates recognizes the need for successful business people to be able to maintain communication while enjoying the activities and serenity of the Humber River area.

What does it cost and how long does it take?
The cost of installation of a phone line is approximately $70.00 CAD, while basic service costs approximately $30.00 CAD per month. Installation can be completed within 10 days of ordering telephone service.

What type of sewage systems is used?
The sewer from the chalets connects directly into the Town of Deer Lake sewer system. There is very little maintenance cost with such a sewer system and the Town of Deer Lake will be responsible for maintaining the system with individual purchasers being responsible for sewer lines on their own property. The provision of sewer services to each property is included in the price of the chalets.

Are the road systems lit at night?
Yes, there will be street lighting on poles at various locations throughout the development.

What are the annual running costs for each type of property?
Running costs for each property will be more or less the same. There will be no monthly fees payable to Humber River Estates unless special services are required. Other running costs would include insurance, property tax, electricity, propane, heat, phone, and satellite service. In the experience of the developer on similar properties in the Humber River area, these total costs would be $7,000.00 CAD annually, which can be deducted from individual rental revenue by the Resort as a fee based service.

Will all contract documents be in English?
Yes. At the purchaser’s option documents can be translated into his or her native tongue but in case of discrepancy the English version will prevail.

Skiing

What skiing facilities are available to property owners at Humber River Resort?
Marble Mountain described as the best skiing east of the Rockies is situated approximately thirty (30) minutes drive from Humber River Resort. This is a small, but top quality ski hill featuring over 500 meters vertical with steep pitches, abundant natural snow, and un-crowded lifts and trails.

What costs are involved?
Currently, the cost of a ski pass for the day is approximately $35.00 CAD

Miscellaneous

How close are the nearest medical practices?
There is a medical clinic three minutes drive from the Humber River Estates in the Town of Deer Lake and there is a full service hospital facility 40 minutes away in the City of Corner Brook. Both these facilities offer a full array of health care services that adhere to the Canadian standards.

Where is the nearest pharmacy?
There are two large pharmacies in the Town of Deer Lake three minutes from the Resort with full time pharmacists at both locations.

How much does an annual salmon fishing licence cost?
An annual salmon licence costs $80.00 CDN per person per year or $117.00 CDN per family per year. It should be noted that non-residents must be accompanied by a licensed guide or a direct relative who is a resident of the Province while salmon fishing. The cost of a guide is approximately $120 CAD per day.

When is the salmon fishing season?
The salmon fishing season runs from June 1st to October 1st. Anglers may start fishing one (1) hour prior to civil sunrise and must finish fishing one (1) hour after sunset.

How many licensed salmon rivers are there in Newfoundland?
There are 177 licensed salmon rivers in Newfoundland.