Some BIG NEWS Regarding the Property Transfer Tax!
Please be advised that there is a Property Transfer Tax charged in B.C. for all transfers of property.
The Property Transfer Tax on your purchase will be based on the contract purchase price and any additional upgrades charged in the Contract on top of the original purchase price and will be payable to our offices along with the balance to complete.
On February 16, 2016, the B.C. government made some significant changes to the Property Transfer Tax.
Tax Rate Changes
After February 16, 2016, the property transfer tax is charged at a rate of:
On or before February 16, 2016, the property transfer tax was charged at a rate of 1% on the first $200,000, and 2% on the portion of the fair market value greater than $200,000.
This rate change will affect homebuyers who purchase homes above $2,000,000.00. This will not affect any homebuyers who purchase a home below $2,000,000.00
Newly Built Home Exemption
The Newly Built Home Exemption reduces or eliminates the amount of property transfer tax you pay when you purchase a newly built home.
IMPORTANT POINT: THIS EXEMPTION DOES NOT APPLY TO USED PROPERTIES.
A newly built home includes:
To qualify, the property (land and improvement) must be registered at the land title office after February 16, 2016 and you must be:
and the property must:
You may qualify for a partial exemption, if the property:
If you don’t qualify because you are not a Canadian citizen or permanent resident, but you become one within 12 months of when the property is registered, you may apply for a refund of the tax.
After you have registered the property, you must meet occupancy requirements during the first year you own the property. To keep the tax exemption you must:
If you have any questions about these changes, please email Lewis Nguyen at (email@example.com) lewis (at) dbmlaw (dot) ca.