Home Buyers info
Property Transfer Tax
There is 1% Property Transfer Tax (2% over $200,000) in B.C. This tax is payable on the purchase of all real property in B.C. The calculation is based on 1% of the purchase price up to $200,000 and 2% of any amount above $200,000. Most first time buyers are exempt from this if they meet certain criteria. The main criteria are:
a borrower has never owned a principal residence anywhere
maximum purchase price of $265,000 for a full exemption with a partial exemption up to $290,000
borrow at least 70% of purchase price
be a Canadian citizen or permanent resident, and residing in B.C. for a minimum of 12 months.
6% Tax on New Homes
Resale homes are exempt from the 6% GST. New Homes are subject to the 6% GST. New homebuyers can apply for a 2.52% rebate of the 6% GST applicable to the purchase price to a maximum of $8,750 for homes costing less than $350,000 before GST. For new homes priced between $350,000 and $450,000 before GST, the GST rebate would be reduced proportionately. New homes priced $450,000 before GST or higher would not receive a rebate.
Building Inspections
Residential real estate is sold "As Is" so a professional building inspection is always a good idea and highly recommended. There is no such thing as a perfect house. Many components of a house wear out over time such as roofs, furnaces, and hot water tanks. To avoid surprises after the fact, an inspection is worth the cost.
City Hall
City Hall or the Regional District Office can be a valuable resource, however they may charge to look at individual property files. The property file contains copies of any correspondence with previous owners, inspections and house plans.
Woodstoves
An inspection is a requirement for insurance companies. Only a C.S.A. mdel installed properly will pass an inspection.
Appliances
Used appliances do not come with a warranty. However, they should be working on possession day.
Boundaries
Property lines can be verified by locating the white corner posts indicating where the metal peg should be. Over the years they go missing and/or moved by children. The site survey or legal map can assist in locating them. A fence, hedge or grass line does not necessarily indicate the property line. Some areas are in a designated flood plain. It is prudent to know if your new property is.
Site Surveys
If bank financing is involved for real estate, they generally request the purchaser supply a site survey as part of their financing requirements. Not all sellers have these on their property. If it is very old, unreadable or changes/additions have been made, it may be necessary to get a new one done.
Oil
Furnace oil is a chattel and not included in a sale unless specifically indicated so on YOUR agreement. The previous owner can request that you pay for the remaining oil on possession day or have it pumped out.
Tanks
Many propane tanks are leased. The new owner may be required to sign a new lease agreement with the company that owns it. Above ground oil tanks can be easily dealt with and removed. however, those that are buried underground will present a problem on the purchase of a property. They represent possible contamination sites that are expensive and complicated to removed and clean up. Environmental reports and oil tank removals are expensive. Insurance companies are reluctant to insure a house with a tank 15 to 20 years old.
Insurance
As a requirement of bank financing, proof of adequate fire insurance must be provided.
Tenants
Unless a lease is in place most tenants are on a month-to-month tenancy. A would be landlord should be familiar with the Residential Tenancy Act of B.C. This changes from time to time as legislation changes. Proper notice and procedures must be followed to terminate a tenancy. Because of the human element there are no guarantees. Under the new act tenants get two months notice and one month free rent.
Cleanliness
Everyone's standard of cleanliness is different. There are no guarantees that a property will be left for you clean to your standards. On viewing a property you can get an idea of how it might be left. To be safe, count on cleaning it yourself or hiring someone to do this. We hope every home is left clean for the new homeowner.
Garbage
Unfortunatley, the odd occasion, a seller does not remove all their garbage on possession date. Garbag removal does involve time, effort and money. In some situations this can be handled right in the offer if a large amount of garbage is noticed when the property is viewed.
Keys
One or some keys will be turned over to the new homeowner on possession day. As realtors we cannot authorize you to use the key any sooner than what has been agreed to in writing. Because homeowners misplace keys, lose keys, give keys to friend, or may not have had keys to open all doors, I recommend (even if it is a new house) rekeying the home you have purchased. It is worth your peace of mind.
Utilities
Every new owner must apply to receive service.
Septic Tanks
Septic systems require maintenance. Because every family lives differently, it may not perform the same. Some areas can experience difficulties during periods of heavy rainfall or saturated grounds. The purchaser should have a full septic inspection.
Water
Piped water in regional district may be metered, but in any case the property owner pays separately for their water consumption. Inquiries should also be made to determine if it is a private water system and the source of the water. If the property is on well water the purchase should have the water tested and make inquiries about the quantity.
Prudential Sussex Realty
Committed Service. Real Estate Sales.
Real Estate North Vancouver. Real Estate West Vancouver. Real Estate Downtown Vancouver. Real Estate in the Lower Mainland. Buy and Sell Real Estate. Specialized in Real Estate. Dave Valente