CLOSING COSTS

Property Transfer Tax

All properties in BC are subject to a Property Transfer Tax. The tax is:

• 1% on the first $200,000, and

• 2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000, and

• 3% on the portion of the fair market value greater than $2,000,000 , and

• if the property is residential, a further 2% on the portion of the fair market value greater than $3,000,000

For example:

SALE PRICE $750,000

1% ON $200,000 = $2,000

2% ON $300,000 = $11,000

TOTAL TAX PAYABLE $13,000

Qualifying “First Time Home-buyers” and purchasers of “New Homes” may qualify for a reduction in the about of taxes paid. Ask me for details.

GST

• Property owners pay GST on the commission.

• GST is typically not payable on “re-sale” housing.

Annual Property Taxes

Your lawyer or notary will adjust your annual municipal property taxes at the time of closing. If the property is your principal residence, you may be eligible for a Homeowners Grant. If you are under the age of 65, this grant may reduce your property taxes by several hundred dollars. If you are over the age of 65, your taxes may be reduced even further. This Homeowners Grant does not apply to revenue properties, or on properties exceeding a certain assessed value.

Insurance Companies

Insurance companies are increasingly concerned with wood-stove certifications, the age of oil tanks (both underground and above ground), and the age of septic tanks. Consult with your Realtor® for more information.

Rescission Period

As of January 1st 2023 BC implemented a Rescission period for residential home buyers who have made an offer on a home. The buyer will have 3 working days from the time of acceptance to rescind their offer. The Rescission notice must be done on the prescribed form, delivered to the seller or representative and a fee of .25% will be payable directly to the seller upon such notice.

ie: On a $1,000,000 purchase price the penalty is $2500