I live in Prince Edward Island Canada 

There is a property down town that a guy is completely gutting from the inside out. He's planing on putting it up for sale when he's finished for around 200,000. I'd like to pay 180,000 and trying to build a case for why he should sell it to me for 180,000 instead of listing it for 200,000 with a realtor

I know a perk would be no realtor fees but I'm looking at how the HST would work if he sold it with a realtor.

If my research is correct if I just buy a house not renovated I just pay the Asking price and no tax. And the seller would have to report any capital gain on their taxes for that year

But since he has renovated the place from top to bottom he would fall into the "significant renovation" rule and if a traditional buyer bought the house for 200,000 then the buyer would also have to pay 30,000 in HST?

If the above is right I read that if you live in the property for a year you don't have to charge the HST so I was thinking about a rent to own scenario then after a year but the place thus avoiding the HST. 

@Andrew MacCormack

As you discovered,  the perspective of the CRA is that a "significant renovation" is essentially the same as a new build and HST is to be collected on the sale.   The exact threshold is a little grey but generally once the renovation entails 60-70%+  it would be deemed "significant".

On a side note:  When posting a new thread to BP, post it once in the most appropriate forum and please do not spam the same message across several forums.   Cross posting fragments any ensuing dialogue and makes topics more difficult to search in the archives.

There for if the seller wanted $200,000 for the property (renovated over 60-70%)
- He would pay $6,000-$10,000 (3-5%) in realtor fees
- Then who ever buys the house would pay $200,000 for the renovated house + $30,000 in HST (15% on PEI)?

@Roy N. sorry for the multi posts when I clicked post on the app it just shut down and gave me no indication that it posted. Is there a way to delete the other 3 posts haha

Correct.   However, it's typically the builder/renovator who collects and remits the HST.  

I would check with your attorney or accountant, but if the renovator sells you the house for $200K all in (and your counsel has the necessary documents signed) then the HST could be deemed to have been included in the price.

Originally posted by @Andrew MacCormack :

@Roy N. sorry for the multi posts when I clicked post on the app it just shut down and gave me no indication that it posted. Is there a way to delete the other 3 posts haha

 Already done