Property Transfer Tax
What is Property Transfer Tax?
When I first moved to BC from Alberta in 2001 and bought our dream property, we first learned about this tax when we were signing the Statement of Adjustments at the lawyers office. He advised us that we needed to pay $4,000 MORE. We were shocked to learn about this tax as not all provinces in Canada charge it. Further, we learned it was our agent who should have advised us!
So with that in mind, I'd like you know about it long before you have to pay it!
The PTT is charged on all real estate in British Columbia with few exceptions such as a first time home buyer or if the property is transferring from an immediate family member to another. Visit the Provincial website to view the criteria regarding exemptions to PPT.
Whether or not you are a resident of BC or if it is a primary or recreational residence, Property Transfer Tax will apply. The tax is 1% on the first $200,000 of the purchase price and 2% on the balance of the purchase price.
On a $400,000 purchase, the tax would be $6,000 so be sure have this amount when calculating the closing costs on the purchase of your property.
CENTURY 21 Executives Realty Ltd.