REAL ESTATE - WHEN YOU ARE BUYING...
Buying a residential property is an important transaction. For first time home buyers, the process may seem even more daunting. Right from the initial contact, we assist our clients by giving them a clear understanding of the process and by explaining, in plain language, what the myriad of documents they are about to sign really mean.
Once you have removed subjects, your contract becomes firm and binding. Our primary role is to facilitate what has been agreed between you as the buyer, and the seller in the Contract of Purchase and Sale.
At this stage, your realtor's office is ready to forward the complete contract and other relevant information to us with a presumption that you have directed them to do so. If you are obtaining mortgage financing for your purchase, then your broker or lender contact should be directed to forward instructions to our office for the preparation of the mortgage documents.
We charge fees and disbursements to facilitate your transaction. Disbursements are all out-of-pocket expenses incurred by us (courier, photocopying, obtaining documents from outside third parties) in order to prepare your file.
Prior to signing your Contract, you should ensure that:
1. You have thoroughly reviewed your Contract and the Property Condition Disclosure Statement;
2. Unless the property you are purchasing is newly constructed, that no work has been done to the Property which may give rise to a Builders' Lien or trust claim, or if there have been repairs or alterations, that appropriate steps have been taken to ensure that no claim is outstanding. We will, of course, do the usual pre-index search at the Land Title Office prior to registering the Transfer to ensure that there are no outstanding registered Builders' Liens;
3. That proper notice has been given to any existing tenant if you are not assuming any current tenants that may be occupying the property.
4. That the Property is appropriately zoned for any particular use you may wish to make of it and that the Property is not the subject of anticipated expropriation or municipal or other work orders (this information may be obtained from the Municipality);
5. That you have arranged for the hook-up of any utility services which you require such as hydro, telephone and cablevision;
6. That satisfactory arrangements have been made for delivery of actual possession of the Property, particularly if there are presently any tenants in occupation. You should arrange with your realtor for the delivery of keys on the possession date;
7. That you have made any required or necessary investigations and/or searches concerning the Heritage Conservation Act to determine if there have been any heritage and/or archaeological sites (i.e. First nations middens, burial grounds, etc.) identified on the Property;
8. That you have made all necessary or required inquiries as to the inhabitability or condition of any of the buildings located on the Property;
9. That you have received and reviewed adequate documentation from the Strata Corporation with respect to assessments, pending litigation, financial affairs, minutes, rules, bylaws, and parking use and that you are not relying on us to review these matters on your behalf.
10. That you have satisfied yourself as to your entitlement to the exclusive, or other use, of any PARKING STALLS associated with the strata lot and the location of such parking stalls. Records regarding parking stalls are often inaccurate and we confirm that you are not relying on us to verify your entitlement.
The Title
We will be searching the title of the property as soon as we open your file and a copy will be provided you for review.
The location and the dimension of the Property are indicated on the Strata Plan filed at the appropriate land title office. Please note that the Land Title Office does not guarantee that the dimensions shown on the Plan are correct and you would have to satisfy yourselves as to the same.
Title Ownership
If you are not the only purchaser, title can be registered in one of two ways: As Joint Tenants or Tenants in Common.
Taking ownership as “Joint Tenants” means that upon the death of either one of you, the property will automatically transmit to the survivor through a “right of survivorship”. The property does not form part of the deceased owner’s estate and will not pass through probate. This is different from being registered as “Tenants in Common” or having a distinct undivided interest whereby the interest owned by the deceased owner becomes part of his or her estate.
You will be asked to instruct us according to your intentions so that the transfer documents can be drafted accordingly.
Insurance for the Property
If you are purchasing a single family detached property, you must have adequate property insurance in place effective the date of completion. Contact your insurance agent of choice well in advance to ensure that your policy is in place on time.
Note that if you are partly financing your purchase by taking out a mortgage, your lender will need proof of insurance prior to funding.
If you are buying a strata unit, the strata corporation is obligated to maintain an insurance policy on the entire building which is funded through the monthly maintenance fees payable by all owners. In this case, we recommend that you obtain a comprehensive homeowner’s package to insure your personal belongings and contents which may include third party liability, the amount of the deductible payable by you as owner under the strata’s policy and any upgrade (renovations) that you may do to your strata lot. Your insurance agent will be able to explain and provide you with details and costs.
Title Insurance
Most lenders require title insurance before they will advance mortgage funds.
Title Insurance may insure the Lender and the Owner in the event of defects in title that are not readily apparent. Most lenders today insist on title insurance before they will advance funds. The title insurance company most commonly used by our office is FCT (First Canadian Title) Insurance Company Ltd. and we encourage you to either visit their website at www.fct.ca or call them at 1-877-888-1153 to obtain further information.
Upon receipt of instructions of your mortgage lender, we will arrange to obtain a title insurance policy. In case of no mortgage, if you still wish to obtain a homeowner’s title insurance policy, please let us know. The cost of the policy premium will be included in the closing balance that you will provide to us “in trust”.
Goods & Services Tax (GST)
Pursuant to the Excise Tax Act, please advise if you know or suspect that the residence on the Property is newly built or has recently been substantially renovated, or is being used for a commercial activity, so that we can make the necessary inquiries of the Seller with respect to their GST remitting obligations. We recommend that you consult with a tax accountant or an agent of the Canada Revenue Agency for advice and clarification of issues such as calculation, collection, remittance and rebates.
Property Transfer Tax
Property Transfer Tax (PTT) is payable at the time of purchase and is included in your statement of adjustment to be remitted by us on your behalf. A completed Property Transfer Tax Return will be presented to you for signature at your appointment. The general property transfer tax applies for all taxable transactions. The general property transfer tax rate is:
The current rate is 1% on the first $200,000.00 of the property’s fair market value, 2% on all value over $200,000.00 up to and including $2M, 3% on all value over $2M up to and including $3M, and 5% on all value in excess of $3M. You may calculate the PTT using the calculator on the Province’s website: https://forms2.gov.bc.ca/forms/content?id=EEE44ACAC0DB4212BB616D7BD233F2A6
Exemptions are available for first-time homebuyers, related parties transferring interest in their principal residence and other specific transactions.
Please advise us if you have never owned a principal residence anywhere and if you believe that you may qualify for an exemption. We attach a summary of conditions to be met by potential first time home buyers for a partial or a full exemption.
If you are applying for exemption from the Property Transfer Tax obligations as a first time home buyer or for any other allowable exemption, we do not guarantee that the exemption will be allowed and you acknowledge that the final decision as to qualification for exemption is at the sole discretion of the Ministry of Finance. You may be required to provide follow up documents to the Property Transfer Tax Office should they require after your purchase.
We encourage you to visit the Property Transfer Tax website at www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax or talk to an agent at (250) 387-0604 ext 2.
Property Transfer Tax (PTT) and land title registration fees are applicable in all transactions which we collect and pay on your behalf to the provincial government and/or their agents. These are additional costs associated with your transaction which will be collected and remitted by us on your behalf (similar to an accountant collecting and paying your income taxes to the Canada Revenue Agency).
Buying a residential property is an important transaction. For first time home buyers, the process may seem even more daunting. Right from the initial contact, we assist our clients by giving them a clear understanding of the process and by explaining, in plain language, what the myriad of documents they are about to sign really mean.
Once you have removed subjects, your contract becomes firm and binding. Our primary role is to facilitate what has been agreed between you as the buyer, and the seller in the Contract of Purchase and Sale.
At this stage, your realtor's office is ready to forward the complete contract and other relevant information to us with a presumption that you have directed them to do so. If you are obtaining mortgage financing for your purchase, then your broker or lender contact should be directed to forward instructions to our office for the preparation of the mortgage documents.
We charge fees and disbursements to facilitate your transaction. Disbursements are all out-of-pocket expenses incurred by us (courier, photocopying, obtaining documents from outside third parties) in order to prepare your file.
Prior to signing your Contract, you should ensure that:
1. You have thoroughly reviewed your Contract and the Property Condition Disclosure Statement;
2. Unless the property you are purchasing is newly constructed, that no work has been done to the Property which may give rise to a Builders' Lien or trust claim, or if there have been repairs or alterations, that appropriate steps have been taken to ensure that no claim is outstanding. We will, of course, do the usual pre-index search at the Land Title Office prior to registering the Transfer to ensure that there are no outstanding registered Builders' Liens;
3. That proper notice has been given to any existing tenant if you are not assuming any current tenants that may be occupying the property.
4. That the Property is appropriately zoned for any particular use you may wish to make of it and that the Property is not the subject of anticipated expropriation or municipal or other work orders (this information may be obtained from the Municipality);
5. That you have arranged for the hook-up of any utility services which you require such as hydro, telephone and cablevision;
6. That satisfactory arrangements have been made for delivery of actual possession of the Property, particularly if there are presently any tenants in occupation. You should arrange with your realtor for the delivery of keys on the possession date;
7. That you have made any required or necessary investigations and/or searches concerning the Heritage Conservation Act to determine if there have been any heritage and/or archaeological sites (i.e. First nations middens, burial grounds, etc.) identified on the Property;
8. That you have made all necessary or required inquiries as to the inhabitability or condition of any of the buildings located on the Property;
9. That you have received and reviewed adequate documentation from the Strata Corporation with respect to assessments, pending litigation, financial affairs, minutes, rules, bylaws, and parking use and that you are not relying on us to review these matters on your behalf.
10. That you have satisfied yourself as to your entitlement to the exclusive, or other use, of any PARKING STALLS associated with the strata lot and the location of such parking stalls. Records regarding parking stalls are often inaccurate and we confirm that you are not relying on us to verify your entitlement.
The Title
We will be searching the title of the property as soon as we open your file and a copy will be provided you for review.
The location and the dimension of the Property are indicated on the Strata Plan filed at the appropriate land title office. Please note that the Land Title Office does not guarantee that the dimensions shown on the Plan are correct and you would have to satisfy yourselves as to the same.
Title Ownership
If you are not the only purchaser, title can be registered in one of two ways: As Joint Tenants or Tenants in Common.
Taking ownership as “Joint Tenants” means that upon the death of either one of you, the property will automatically transmit to the survivor through a “right of survivorship”. The property does not form part of the deceased owner’s estate and will not pass through probate. This is different from being registered as “Tenants in Common” or having a distinct undivided interest whereby the interest owned by the deceased owner becomes part of his or her estate.
You will be asked to instruct us according to your intentions so that the transfer documents can be drafted accordingly.
Insurance for the Property
If you are purchasing a single family detached property, you must have adequate property insurance in place effective the date of completion. Contact your insurance agent of choice well in advance to ensure that your policy is in place on time.
Note that if you are partly financing your purchase by taking out a mortgage, your lender will need proof of insurance prior to funding.
If you are buying a strata unit, the strata corporation is obligated to maintain an insurance policy on the entire building which is funded through the monthly maintenance fees payable by all owners. In this case, we recommend that you obtain a comprehensive homeowner’s package to insure your personal belongings and contents which may include third party liability, the amount of the deductible payable by you as owner under the strata’s policy and any upgrade (renovations) that you may do to your strata lot. Your insurance agent will be able to explain and provide you with details and costs.
Title Insurance
Most lenders require title insurance before they will advance mortgage funds.
Title Insurance may insure the Lender and the Owner in the event of defects in title that are not readily apparent. Most lenders today insist on title insurance before they will advance funds. The title insurance company most commonly used by our office is FCT (First Canadian Title) Insurance Company Ltd. and we encourage you to either visit their website at www.fct.ca or call them at 1-877-888-1153 to obtain further information.
Upon receipt of instructions of your mortgage lender, we will arrange to obtain a title insurance policy. In case of no mortgage, if you still wish to obtain a homeowner’s title insurance policy, please let us know. The cost of the policy premium will be included in the closing balance that you will provide to us “in trust”.
Goods & Services Tax (GST)
Pursuant to the Excise Tax Act, please advise if you know or suspect that the residence on the Property is newly built or has recently been substantially renovated, or is being used for a commercial activity, so that we can make the necessary inquiries of the Seller with respect to their GST remitting obligations. We recommend that you consult with a tax accountant or an agent of the Canada Revenue Agency for advice and clarification of issues such as calculation, collection, remittance and rebates.
Property Transfer Tax
Property Transfer Tax (PTT) is payable at the time of purchase and is included in your statement of adjustment to be remitted by us on your behalf. A completed Property Transfer Tax Return will be presented to you for signature at your appointment. The general property transfer tax applies for all taxable transactions. The general property transfer tax rate is:
The current rate is 1% on the first $200,000.00 of the property’s fair market value, 2% on all value over $200,000.00 up to and including $2M, 3% on all value over $2M up to and including $3M, and 5% on all value in excess of $3M. You may calculate the PTT using the calculator on the Province’s website: https://forms2.gov.bc.ca/forms/content?id=EEE44ACAC0DB4212BB616D7BD233F2A6
Exemptions are available for first-time homebuyers, related parties transferring interest in their principal residence and other specific transactions.
Please advise us if you have never owned a principal residence anywhere and if you believe that you may qualify for an exemption. We attach a summary of conditions to be met by potential first time home buyers for a partial or a full exemption.
If you are applying for exemption from the Property Transfer Tax obligations as a first time home buyer or for any other allowable exemption, we do not guarantee that the exemption will be allowed and you acknowledge that the final decision as to qualification for exemption is at the sole discretion of the Ministry of Finance. You may be required to provide follow up documents to the Property Transfer Tax Office should they require after your purchase.
We encourage you to visit the Property Transfer Tax website at www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax or talk to an agent at (250) 387-0604 ext 2.
Property Transfer Tax (PTT) and land title registration fees are applicable in all transactions which we collect and pay on your behalf to the provincial government and/or their agents. These are additional costs associated with your transaction which will be collected and remitted by us on your behalf (similar to an accountant collecting and paying your income taxes to the Canada Revenue Agency).
Buying a residential property is an important transaction. For first time home buyers, the process may seem even more daunting. Right from the initial contact, we assist our clients by giving them a clear understanding of the process and by explaining, in plain language, what the myriad of documents they are about to sign really mean.
Once you have removed subjects, your contract becomes firm and binding. Our primary role is to facilitate what has been agreed between you as the buyer, and the seller in the Contract of Purchase and Sale.
At this stage, your realtor's office is ready to forward the complete contract and other relevant information to us with a presumption that you have directed them to do so. If you are obtaining mortgage financing for your purchase, then your broker or lender contact should be directed to forward instructions to our office for the preparation of the mortgage documents.
We charge fees and disbursements to facilitate your transaction. Disbursements are all out-of-pocket expenses incurred by us (courier, photocopying, obtaining documents from outside third parties) in order to prepare your file.
Prior to signing your Contract, you should ensure that:
1. You have thoroughly reviewed your Contract and the Property Condition Disclosure Statement;
2. Unless the property you are purchasing is newly constructed, that no work has been done to the Property which may give rise to a Builders' Lien or trust claim, or if there have been repairs or alterations, that appropriate steps have been taken to ensure that no claim is outstanding. We will, of course, do the usual pre-index search at the Land Title Office prior to registering the Transfer to ensure that there are no outstanding registered Builders' Liens;
3. That proper notice has been given to any existing tenant if you are not assuming any current tenants that may be occupying the property.
4. That the Property is appropriately zoned for any particular use you may wish to make of it and that the Property is not the subject of anticipated expropriation or municipal or other work orders (this information may be obtained from the Municipality);
5. That you have arranged for the hook-up of any utility services which you require such as hydro, telephone and cablevision;
6. That satisfactory arrangements have been made for delivery of actual possession of the Property, particularly if there are presently any tenants in occupation. You should arrange with your realtor for the delivery of keys on the possession date;
7. That you have made any required or necessary investigations and/or searches concerning the Heritage Conservation Act to determine if there have been any heritage and/or archaeological sites (i.e. First nations middens, burial grounds, etc.) identified on the Property;
8. That you have made all necessary or required inquiries as to the inhabitability or condition of any of the buildings located on the Property;
9. That you have received and reviewed adequate documentation from the Strata Corporation with respect to assessments, pending litigation, financial affairs, minutes, rules, bylaws, and parking use and that you are not relying on us to review these matters on your behalf.
10. That you have satisfied yourself as to your entitlement to the exclusive, or other use, of any PARKING STALLS associated with the strata lot and the location of such parking stalls. Records regarding parking stalls are often inaccurate and we confirm that you are not relying on us to verify your entitlement.
The Title
We will be searching the title of the property as soon as we open your file and a copy will be provided you for review.
The location and the dimension of the Property are indicated on the Strata Plan filed at the appropriate land title office. Please note that the Land Title Office does not guarantee that the dimensions shown on the Plan are correct and you would have to satisfy yourselves as to the same.
Title Ownership
If you are not the only purchaser, title can be registered in one of two ways: As Joint Tenants or Tenants in Common.
Taking ownership as “Joint Tenants” means that upon the death of either one of you, the property will automatically transmit to the survivor through a “right of survivorship”. The property does not form part of the deceased owner’s estate and will not pass through probate. This is different from being registered as “Tenants in Common” or having a distinct undivided interest whereby the interest owned by the deceased owner becomes part of his or her estate.
You will be asked to instruct us according to your intentions so that the transfer documents can be drafted accordingly.
Insurance for the Property
If you are purchasing a single family detached property, you must have adequate property insurance in place effective the date of completion. Contact your insurance agent of choice well in advance to ensure that your policy is in place on time.
Note that if you are partly financing your purchase by taking out a mortgage, your lender will need proof of insurance prior to funding.
If you are buying a strata unit, the strata corporation is obligated to maintain an insurance policy on the entire building which is funded through the monthly maintenance fees payable by all owners. In this case, we recommend that you obtain a comprehensive homeowner’s package to insure your personal belongings and contents which may include third party liability, the amount of the deductible payable by you as owner under the strata’s policy and any upgrade (renovations) that you may do to your strata lot. Your insurance agent will be able to explain and provide you with details and costs.
Title Insurance
Most lenders require title insurance before they will advance mortgage funds.
Title Insurance may insure the Lender and the Owner in the event of defects in title that are not readily apparent. Most lenders today insist on title insurance before they will advance funds. The title insurance company most commonly used by our office is FCT (First Canadian Title) Insurance Company Ltd. and we encourage you to either visit their website at www.fct.ca or call them at 1-877-888-1153 to obtain further information.
Upon receipt of instructions of your mortgage lender, we will arrange to obtain a title insurance policy. In case of no mortgage, if you still wish to obtain a homeowner’s title insurance policy, please let us know. The cost of the policy premium will be included in the closing balance that you will provide to us “in trust”.
Goods & Services Tax (GST)
Pursuant to the Excise Tax Act, please advise if you know or suspect that the residence on the Property is newly built or has recently been substantially renovated, or is being used for a commercial activity, so that we can make the necessary inquiries of the Seller with respect to their GST remitting obligations. We recommend that you consult with a tax accountant or an agent of the Canada Revenue Agency for advice and clarification of issues such as calculation, collection, remittance and rebates.
Property Transfer Tax
Property Transfer Tax (PTT) is payable at the time of purchase and is included in your statement of adjustment to be remitted by us on your behalf. A completed Property Transfer Tax Return will be presented to you for signature at your appointment. The general property transfer tax applies for all taxable transactions. The general property transfer tax rate is:
The current rate is 1% on the first $200,000.00 of the property’s fair market value, 2% on all value over $200,000.00 up to and including $2M, 3% on all value over $2M up to and including $3M, and 5% on all value in excess of $3M. You may calculate the PTT using the calculator on the Province’s website: https://forms2.gov.bc.ca/forms/content?id=EEE44ACAC0DB4212BB616D7BD233F2A6
Exemptions are available for first-time homebuyers, related parties transferring interest in their principal residence and other specific transactions.
Please advise us if you have never owned a principal residence anywhere and if you believe that you may qualify for an exemption. We attach a summary of conditions to be met by potential first time home buyers for a partial or a full exemption.
If you are applying for exemption from the Property Transfer Tax obligations as a first time home buyer or for any other allowable exemption, we do not guarantee that the exemption will be allowed and you acknowledge that the final decision as to qualification for exemption is at the sole discretion of the Ministry of Finance. You may be required to provide follow up documents to the Property Transfer Tax Office should they require after your purchase.
We encourage you to visit the Property Transfer Tax website at www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax or talk to an agent at (250) 387-0604 ext 2.
Property Transfer Tax (PTT) and land title registration fees are applicable in all transactions which we collect and pay on your behalf to the provincial government and/or their agents. These are additional costs associated with your transaction which will be collected and remitted by us on your behalf (similar to an accountant collecting and paying your income taxes to the Canada Revenue Agency).
Buying a residential property is an important transaction. For first time home buyers, the process may seem even more daunting. Right from the initial contact, we assist our clients by giving them a clear understanding of the process and by explaining, in plain language, what the myriad of documents they are about to sign really mean.
Once you have removed subjects, your contract becomes firm and binding. Our primary role is to facilitate what has been agreed between you as the buyer, and the seller in the Contract of Purchase and Sale.
At this stage, your realtor's office is ready to forward the complete contract and other relevant information to us with a presumption that you have directed them to do so. If you are obtaining mortgage financing for your purchase, then your broker or lender contact should be directed to forward instructions to our office for the preparation of the mortgage documents.
We charge fees and disbursements to facilitate your transaction. Disbursements are all out-of-pocket expenses incurred by us (courier, photocopying, obtaining documents from outside third parties) in order to prepare your file.
Prior to signing your Contract, you should ensure that:
1. You have thoroughly reviewed your Contract and the Property Condition Disclosure Statement;
2. Unless the property you are purchasing is newly constructed, that no work has been done to the Property which may give rise to a Builders' Lien or trust claim, or if there have been repairs or alterations, that appropriate steps have been taken to ensure that no claim is outstanding. We will, of course, do the usual pre-index search at the Land Title Office prior to registering the Transfer to ensure that there are no outstanding registered Builders' Liens;
3. That proper notice has been given to any existing tenant if you are not assuming any current tenants that may be occupying the property.
4. That the Property is appropriately zoned for any particular use you may wish to make of it and that the Property is not the subject of anticipated expropriation or municipal or other work orders (this information may be obtained from the Municipality);
5. That you have arranged for the hook-up of any utility services which you require such as hydro, telephone and cablevision;
6. That satisfactory arrangements have been made for delivery of actual possession of the Property, particularly if there are presently any tenants in occupation. You should arrange with your realtor for the delivery of keys on the possession date;
7. That you have made any required or necessary investigations and/or searches concerning the Heritage Conservation Act to determine if there have been any heritage and/or archaeological sites (i.e. First nations middens, burial grounds, etc.) identified on the Property;
8. That you have made all necessary or required inquiries as to the inhabitability or condition of any of the buildings located on the Property;
9. That you have received and reviewed adequate documentation from the Strata Corporation with respect to assessments, pending litigation, financial affairs, minutes, rules, bylaws, and parking use and that you are not relying on us to review these matters on your behalf.
10. That you have satisfied yourself as to your entitlement to the exclusive, or other use, of any PARKING STALLS associated with the strata lot and the location of such parking stalls. Records regarding parking stalls are often inaccurate and we confirm that you are not relying on us to verify your entitlement.
The Title
We will be searching the title of the property as soon as we open your file and a copy will be provided you for review.
The location and the dimension of the Property are indicated on the Strata Plan filed at the appropriate land title office. Please note that the Land Title Office does not guarantee that the dimensions shown on the Plan are correct and you would have to satisfy yourselves as to the same.
Title Ownership
If you are not the only purchaser, title can be registered in one of two ways: As Joint Tenants or Tenants in Common.
Taking ownership as “Joint Tenants” means that upon the death of either one of you, the property will automatically transmit to the survivor through a “right of survivorship”. The property does not form part of the deceased owner’s estate and will not pass through probate. This is different from being registered as “Tenants in Common” or having a distinct undivided interest whereby the interest owned by the deceased owner becomes part of his or her estate.
You will be asked to instruct us according to your intentions so that the transfer documents can be drafted accordingly.
Insurance for the Property
If you are purchasing a single family detached property, you must have adequate property insurance in place effective the date of completion. Contact your insurance agent of choice well in advance to ensure that your policy is in place on time.
Note that if you are partly financing your purchase by taking out a mortgage, your lender will need proof of insurance prior to funding.
If you are buying a strata unit, the strata corporation is obligated to maintain an insurance policy on the entire building which is funded through the monthly maintenance fees payable by all owners. In this case, we recommend that you obtain a comprehensive homeowner’s package to insure your personal belongings and contents which may include third party liability, the amount of the deductible payable by you as owner under the strata’s policy and any upgrade (renovations) that you may do to your strata lot. Your insurance agent will be able to explain and provide you with details and costs.
Title Insurance
Most lenders require title insurance before they will advance mortgage funds.
Title Insurance may insure the Lender and the Owner in the event of defects in title that are not readily apparent. Most lenders today insist on title insurance before they will advance funds. The title insurance company most commonly used by our office is FCT (First Canadian Title) Insurance Company Ltd. and we encourage you to either visit their website at www.fct.ca or call them at 1-877-888-1153 to obtain further information.
Upon receipt of instructions of your mortgage lender, we will arrange to obtain a title insurance policy. In case of no mortgage, if you still wish to obtain a homeowner’s title insurance policy, please let us know. The cost of the policy premium will be included in the closing balance that you will provide to us “in trust”.
Goods & Services Tax (GST)
Pursuant to the Excise Tax Act, please advise if you know or suspect that the residence on the Property is newly built or has recently been substantially renovated, or is being used for a commercial activity, so that we can make the necessary inquiries of the Seller with respect to their GST remitting obligations. We recommend that you consult with a tax accountant or an agent of the Canada Revenue Agency for advice and clarification of issues such as calculation, collection, remittance and rebates.
Property Transfer Tax
Property Transfer Tax (PTT) is payable at the time of purchase and is included in your statement of adjustment to be remitted by us on your behalf. A completed Property Transfer Tax Return will be presented to you for signature at your appointment. The general property transfer tax applies for all taxable transactions. The general property transfer tax rate is:
The current rate is 1% on the first $200,000.00 of the property’s fair market value, 2% on all value over $200,000.00 up to and including $2M, 3% on all value over $2M up to and including $3M, and 5% on all value in excess of $3M. You may calculate the PTT using the calculator on the Province’s website: https://forms2.gov.bc.ca/forms/content?id=EEE44ACAC0DB4212BB616D7BD233F2A6
Exemptions are available for first-time homebuyers, related parties transferring interest in their principal residence and other specific transactions.
Please advise us if you have never owned a principal residence anywhere and if you believe that you may qualify for an exemption. We attach a summary of conditions to be met by potential first time home buyers for a partial or a full exemption.
If you are applying for exemption from the Property Transfer Tax obligations as a first time home buyer or for any other allowable exemption, we do not guarantee that the exemption will be allowed and you acknowledge that the final decision as to qualification for exemption is at the sole discretion of the Ministry of Finance. You may be required to provide follow up documents to the Property Transfer Tax Office should they require after your purchase.
We encourage you to visit the Property Transfer Tax website at www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax or talk to an agent at (250) 387-0604 ext 2.
Property Transfer Tax (PTT) and land title registration fees are applicable in all transactions which we collect and pay on your behalf to the provincial government and/or their agents. These are additional costs associated with your transaction which will be collected and remitted by us on your behalf (similar to an accountant collecting and paying your income taxes to the Canada Revenue Agency).