LINKS
Want to know more about zoning, tax assessments, and the properties around a property? All the municipal governments, and the regional government, in Sea to Sky Country make a lot of information available to you through their mapping functions:
Squamish-Lillooet Regional District
BC Assessment's website will also tell you what the most recent government assessment of a property is.
CLOSING COSTS
These comments on taxes apply to residential purchases. Commercial purchases involve somewhat different considerations.
LOCAL GOVERNMENT TAXES
Taxes to the municipality or region government are paid annually in British Columbia. When you are purchasing we make sure you pay for the portion of the year that you will own your new property for.
UTILITIES and RELATED COSTS
Payments for services (for example, water, sewer and garbage) your property is offered by your local government or other agencies are paid annually. When you are purchasing we investigate what are the costs associated with your property and then ensure that you and your seller have an agreement as to who will actually pay for what costs
PROPERTY TRANSFER TAX
The property transfer tax rate in British Columbia is 1% of the purchase price for the first $200,000.00 and then 2% for any of the purchase price in excess of $200,000.00.
The most common exemption from paying the Property Transfer Tax is the First Time Homebuyers exemption. If you think you may be eligible for this exemption we will review your situation with you to ensure that you meet all the governments eligibility requirements.
There are some other exemptions from the Property Transfer Tax which do not generally apply to a purchase of residential properties. If your individual circumstances call for it we will discuss these exemptions with you.
GST
Goods and Services Tax is generally only paid on new or substantially renovated residential real estate. If you are buying used residential real estate you generally are not responsible for paying this tax.
If you are buying new residential real estate then the GST is charged at a rate of 5% of the purchase price. You may be eligible for a rebate if you meet all the criteria for this rebate. If your purchase involves GST and applying for a rebate we will discuss how you will receive the benefit of this rebate.
BC TRANSITIONAL TAX
This tax:
- is in place to take into account BC's changing from charging HST (combined federal and provincial sales tax) to paying a separate GST (federal tax) and PST (provincial tax); and
- will only apply if there is GST owing on your purchase AND construction of your new property was more than 10% complete as of April 1, 2013.
The BC Transitional Tax is charged at a rate of 2% of the purchase price. Determining if this tax is owing on your purchase can be very complicated and we will consider this issue with you if your purchase calls for it.
OTHER COSTS
if you are buying in a strata, other than a duplex, there are normally monthly strata fees that will need to be considered as part of your purchase. Some stratas also charge other costs, such as move-in-fees and similar one time fees.
If you are getting a mortgage to purchase your property a lot of financial institutions require title insurance. This link is to a title insurance company we use regularly, however there are many other title insurance companies you could consider.