Real Estate Transfers
My office assists Buyers and Sellers when buying and/or selling
real estate as well as when granting mortgages to lenders for their real
estate purchases or for home equity loans and
attending to the release of mortgages from property. I would be pleased to
be of assistance and ask that you inform your realtor, if applicable, as well as
your
lender's representative and contact my office as soon as
possible.
The Contract of Purchase and Sale
This document is more than a receipt. When signed by
both parties, it is a legally binding contract. READ IT CAREFULLY.
The parties should ensure that everything that is agreed to is in writing.
If you are not dealing with a real estate agent, I would be pleased to prepare a
Contract of Purchase and Sale on your behalf.
Title to the Property
A Buyer should satisfy himself on matters of zoning or
building or use restrictions, toxic or environmental hazards, encroachments on
or by the property an any encumbrances which are staying on title before becoming
legally bound. If you are taking out a mortgage, make sure that title,
zoning and building restrictions are all acceptable to your mortgage
company. IN CERTAIN CIRCUMSTANCES the mortgage company could refuse to
advance funds. If you as a Seller are allowing a Buyer to assume your
mortgage you may still be responsible for payment of the mortgage unless
arrangements are made with your mortgage company.
Completion
- Buyer pays purchase price or remainder of down payment
in trust to his or her notary public in trust by way of a certified cheque
or money order at least one day prior to the completion date. (I
will advise you of the exact amount). Buyer signs the documents.
- Buyer's notary public prepares documents and forwards
them for signature to Seller's lawyer or notary public who returns documents
to buyer's lawyer or notary public.
- Once in a position to proceed to complete the
transaction, the Buyer's lawyer or notary public then attends to deposit of
signed title documents and any mortgages in the appropriate land title
office.
- Buyer's notary public or lawyer releases sale proceeds
to the Buyer's lawyer or notary public office.
Costs to be borne by Seller
 | Lawyer or notary fees and disbursements |
 | Real Estate Commission |
 | Goods and Services Tax |
Costs to be borne by Buyer
 | Lawyer or notary fees and disbursements |
 | Appraisal of property |
 | Fire Insurance Premium |
 | Sales Tax (if applicable) |
 | Property Transfer Tax |
 | Goods and Services Tax (if applicable) |
Land Transfer Tax British Columbia
The requirements for the exemption from the B. C. Land Transfer Tax as a First Time Home Buyer in British Columbia are as follows:
- Each buyer applying for the exemption/refund must be a
Canadian citizen or a permanent resident as defined in the Immigration and
Refugee Protection Act (Canada).
- Where a buyer is not entitled to an exemption at the
registration date only because they are not a Canadian citizen or permanent
resident, and the buyer satisfies that requirement on or before the first
anniversary of the registration date, they may apply for a refund of the tax
paid. Application for a refund must be made within 18 months of the
registration date.
- Each buyer applying for the exemption/refund must have
either continuously resided in British Columbia for at least one year
immediately prior to the registration date or, if the buyer did not
continuously reside in British Columbia for that period, have filed income
tax returns as a resident of British Columbia for 2 of the 6 taxation years
immediately prior to the registration date.
- Each buyer applying for the exemption/refund must not
have previously owned an interest in a principal residence anywhere.
- Each buyer applying for the exemption/refund must not
have previously obtained a first time home buyer's exemption or
refund.
- To be eligible for the full exemption, the fair market
value of the land and improvements which comprise the principal residence
must not exceed the qualifying value of $425,000.
- If the fair market value of the land and improvements
which comprise the principal residence exceeds the applicable qualifying
value by an amount not greater then $25,000 a proportionate exemption is
available.
- The buyer must occupy the property as their principal
residence within 92 days of the date of registration at the Land Title
Office.
- If the property purchased is vacant land, the residence
must be established prior to the first anniversary of the registration date,
and the purchaser must occupy and use the property as their principal
residence from the date the residence was established to a date not earlier
than the first anniversary of the registration date.
- If the property purchased is vacant land, the fair
market value of the land plus the total cost to construct the improvement
must be no greater than the sum of the applicable qualifying value in 6. and
$25,000.
Survey Certificates
Your lender may require a survey certificate showing the
dimensions of your new property and the location of your new home as well as any
other permanent structures on the property. This certificate is a means of
determining if there are any encroachments onto the property you are purchasing
or onto your neighbour's property. The certificate also determines whether
or not the setback requirements specified in the bylaws of the City or regional
district in which your property is located are complied with.
Title Insurance
An alternative to obtaining a survey
certificate is purchasing title insurance which is acceptable to most
Lenders. With title insurance, the title insurance company insures Lenders against loss or damage that would have been revealed by an
up-to-date survey. A Buyer/Borrower can also purchase a title
insurance policy to be insured.
Possession
Buyer should make arrangements through their real estate
agent or the seller directly if not dealing with a real estate agent for
obtaining possession. A Seller will usually not allow a Buyer to move in
before the Seller has actually received the sale proceeds.
Risk
Buyer should arrange insurance to be effective on the
completion date. Seller should maintain their insurance in effect until
the Seller receives the proceeds of sale.

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