British Columbia Real Estate Terms:
These Real Estate Terms are specific to Real Estate Transactions in British
Most of the Real Estate Terms set out in the Alberta
Real Estate section are also applicable to British Columbia real estate
Buyer's Statement of Adjustments - is the statement of adjustments
specific to the Buyer and sets out the applicable Debits and Credits of the
Buyer respecting the Property.
CLICK HERE to see an actual Buyer's Statement of Adjustments.
First Time Home Buyers
- there is an exemption from the
Property Transfer Tax if you qualify for the
First Time Home Buyers Exemption. The general principles are that you are a
Canadian citizen, the property is your principle residence and you have
maintained a principle residence in British Columbia for the prior year.
The section is technical, so if you believe you have met these minimum
requirements, make further enquiries to see if you do indeed qualify.
There are also limits respecting the value of the property.
Form A - is the name for Transfer of Land and is the only form BC will
allow to be used at the Land Title Office to transfer Property.
to see an actual Form A Transfer.
Form B - is the name for a Mortgage and is the only form BC will allow
to be used at the Land Title Office to mortgage a Property.
to see an actual Form B Mortgage.
Form C - is the name for the form that is used to register all other
interests in land in BC such as leases, options to purchase and easements.
GST Certificate - is a certificate that is obtained from the Seller
dealing with whether GST is payable by the Buyer or not. In most sales of
USED residential properties, no GST is payable, whereas generally GST is payable
on NEW residential properties. This issue must be dealt with on your
CLICK HERE to review an actual GST
Prescribed Mortgage Terms - are a set of mortgage terms that are
prescribed by legislation and can be selected in the Form B as the terms that
are applicable to the mortgage.
CLICK HERE to read the Prescribed Mortgage
PST - Provincial Sales Tax is a tax created by the British Columbia
Government in the amount
of 7.5%. This tax is not payable by an Alberta Purchaser if an Alberta
Lawyer, who is licensed to practice in BC, acts for you.
PTT - see Property Transfer Tax
Property Transfer Tax - is a tax created by the British Columbia Government
charged on the sale of every piece of real estate in British Columbia, with
few Exemptions. This can be a significant sum of money. The tax is equal to 1% of the first $200,000 of
the Purchase Price and
2% on the balance of the Purchase Price. Therefore, the property transfer tax on a $500,000
Property would be $8,000. (($200,000 x 1%) + ($300,000 x 2%)). This amount must be paid at the time Title is
registered at the Land Title Office.
Property Transfer Tax Exemptions - There are some BC
purchase/transfers of real estate which are exempt from the PTT. If you
believe your transaction is exempt, you should have it reviewed and you should
also know that your claim for an exemption will likely be reviewed by the BC Government.
CLICK HERE to read about the transactions
that are EXEMPT from Property Transfer Tax. If you are a First Time Home Buyer
you may qualify for
CLICK HERE to read
about what is necessary to qualify.
Property Transfer Tax Form -
This is a mandatory form which is filed with the Form A Transfer and Form B
Mortgage (if applicable) at the Land Title Office. This form provides
information respecting the transaction as well as the calculation of the
applicable Property Transfer Tax.
to see a "regular" Property Transfer Tax Form. If you are claiming an
"exemption", there are other forms to use.
Residency Certificate - is a certificate obtained by the Buyer from
the Seller whereby the Seller discloses whether he is a resident of Canada or
not. Most Sellers in Canada are residents, however, if the Seller is not a
resident, then there will be a withholding of 25% of the sale price from the
Seller until a Clearance Certificate is obtained.
to read more about Non-Resident Sellers.
to see an actual Residency Certificate.
Seller's Statement of Adjustments - is the Statement of Adjustments
specific to the Seller and sets out the applicable Debits and Credits of the
Seller respecting the Property.
CLICK HERE to
see an actual Seller's Statement of Adjustments.
Standard Mortgage Terms - is the name given to the mortgage terms that are
filed by each Lender and given a specific number by the Land Title Office.
When preparing a Form B, reference is made to the specific number which
automatically includes these terms as part of your Mortgage.
State of Title Certificate - is an official document obtained from the
Land Title Office which confirms the state of the title to a property at a point
in time. A State of Title Certificate is obtained after the Seller's
Mortgage is discharged from the title.
to see an actual State of Title Certificate.
Survey Certificate - is a certificate prepared by a BC Land Surveyor
that locates the position of the House in relationship to the Lot lines.
This is used in BC sometimes to satisfy the Lender that the property they are
loaning against does not have any issues respecting encroachments into the
adjoining property and is similar to a Real Property Report.