The Property Transfer Tax is a tax payable to the provincial government by purchasers of real estate. The tax applies to all types of real estate, whether residential, commercial or industrial. The amount of the Property Transfer Tax is 1% on the first $200,000 of the property’s fair market value and 2% on the remaining amount.

For example: If the fair market value of a property is $250,000, the tax payable will be $3,000.00 (1% on the first $200,000 = $2,000 and 2% on the remaining $50,000 = $1,000 therefore $2,000 + $1,000 = $3,000).

“Fair Market Value” is best described as the price that would be paid for a property on the open market (which is usually the actual purchase price paid for the property). If the transfer of property is taking place without the exchange of money, the fair market value must be the fair value of the property if same was sold on the open market. In some situations, the fair market value is determined by the recent Assessment received from the Assessment Office.

There are a number of exemptions available to purchasers so that the tax is not payable. The most common is the exemption for “First Time Home Buyers.” To understand how to qualify for an exemption to the Property Purchase Tax as a First Time Home Buyer, please click here. Other exemptions exist as well, such as a transfer of a principal residence between certain family members. For details on this and other exemptions, please visit http://www.rev.gov.bc.ca/RPT/ and pick the “Property Transfer Tax” button located on the right hand side on the screen.

Property Transfer Tax should not be confused with Property Tax. The Property Transfer Tax is a one time tax paid to the provincial government by purchasers of real estate. The property tax is the tax paid on an annual basis to the local city/municipality.

For first-time home buyers purchasing a new home (built by a builder) on or after May 27, 2025, a new federal GST/HST rebate offers up to 100% of the GST (or federal portion of HST) back, up to $50,000 for homes priced under $1 million.

• Eligibility: The buyer must be a first-time home buyer (not owned a home in the current + 4 preceding years) and use the home as their primary place of residence.
• Price Thresholds: 100% rebate for homes up to $1 million; partial rebates for homes $1 million–$1.5 million; no rebate over $1.5 million.
• Form: Use Form GST190 for builder-purchased homes.

More info go to https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/gst190.html

As a first timehome buyer, you may qualify for an exemption from paying the Property Transfer Tax. 

To qualify for an exemption, at the time the property is registered you must:

• Be a Canadian citizen or permanent resident
• Have either:
  • Lived in B.C. for at least a year immediately before the date you register the property
  • Filed at least 2 income tax returns as a B.C. resident in the last 6 taxation years immediately before the registration date
• Have never owned a registered interest in a property that was your principal residence anywhere in the world at any time
• Have never received a first time home buyers’ exemption or refund

And the property must:

• Only be used as your principal residence
• Have a fair market value of $835,000 or less (effective April 1, 2024)
• Be 0.5 hectares (1.24 acres) or smaller, and
• Contain only residential improvements

If all of the above requirements are met, then the purchaser will be exempt from property transfer tax on the first $500,000 of the purchase price of the property.

https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/exemptions/first-time-home-buyers

If someone is moving to British Columbia from another province, buying a home here can feel familiar on the surface—but there are important differences that can significantly affect cost, risk, and process. The first major difference is Property Transfer Tax (PTT). In BC, buyers pay 1% on the first $200,000, 2% up to $2M, 3% from $2M to $3M, and 5% over $3M. On a $1.5M home, that’s roughly $28,000 due at closing. Many provinces either don’t have an equivalent tax or charge far less, so this often surprises newcomers.

In certain regions such as Metro Vancouver, buyers may also encounter additional taxes like the Speculation and Vacancy Tax or the Empty Homes Tax administered by the City of Vancouver. Even Canadian citizens moving from another province must complete declarations, and the rules are strictly enforced.

Another major difference is BC’s strong strata culture. Condos and townhouses are governed under the Strata Property Act, and governance is more formal and regulated than in many other provinces. Buyers are expected to review:

1. depreciation reports, 
2. at least two years of strata meeting minutes, 
3. the contingency reserve fund, 
4. and any history of special assessments. 

Poor strata management can lead to large unexpected costs, so due diligence is critical. Closing costs in BC are also typically higher than buyers expect. In addition to Property Transfer Tax, you should budget for legal fees, title insurance, inspections, appraisals, and GST on new construction. Buyers coming from provinces like Alberta or Saskatchewan are often surprised by the total transaction cost.

Insurance and climate risk are also more significant considerations in BC. Certain areas face elevated wildfire, flood, and earthquake risks, particularly along the coast. Insurance can be more expensive, harder to obtain, or contain exclusions in high-risk zones, and lenders may require specific coverage. Market dynamics differ as well. In areas like the Lower Mainland and Vancouver Island, supply constraints and global capital influence pricing, and markets can move quickly during active cycles. While subject conditions such as financing and inspection are common, they may disappear in competitive environments, requiring buyers to be prepared and decisive.

BC also uses a Property Disclosure Statement system, but it is not a warranty. The principle of buyer beware still applies. Buyers should conduct thorough inspections, review title and zoning, and understand municipal plans that could affect the property. First-time buyer programs exist, including Property Transfer Tax exemptions and newly built home exemptions, but eligibility thresholds often sit below typical Vancouver-area prices, meaning many buyers do not qualify.

The key takeaway is simple: do not assume your previous province’s experience translates directly to BC. Taxes are higher, strata governance is more detailed, climate risk is more relevant, and market psychology can be stronger. 

Buying in British Columbia can be an excellent long-term investment, but informed preparation makes all the difference.

When you are moving from another part of Canada, the registration process may be a little different than you are used to. Make sure to let us know so we can give you the information you need to know. 

When you speak with us, we ask you some questions to ensure that we provide you with an accurate quote for your specific circumstances. As long as nothing changes, you can count on our fee being what was quoted. We will also give you an estimate of the disbursements for your file. These are costs charged by 3rd parties and are variable for each file. 

Whether you are refninancing, selling or purchasing a home, there will be 3rd party costs to consider.

These include, but are not limited to: Due diligence seraches like title searches, tax certificates, and strata documents, and insurance confirmation. Land title fees (searches, document retrieval, discharges and registrations), courier and postage, econveyance, title insurance, adjudtments (interest, strata and tax), and sometimes property appraisal fees.

Title Insurance is a form of insurance that protects purchasers and mortgage lenders from a number of potential risks. These risks are usually matters which are not covered by a traditional lawyer’s opinion. Briefly summarized, these added protections include the following:

Defects that would be revealed by a site survey. In the absence of an existing survey, Title Insurance may be ordered in lieu of a new survey. Please note that this assumes that a new survey must be ordered. If the vendor is able to provide an older survey or if the applicable city hall has a survey certificate, these often may be utilized. Title Insurance covers any defects to the title that would normally be revealed by looking at a survey, such as boundary encroachments and buildings that have been constructed on a municipal right of way or easement. Title insurance would pay to rectify these defects on a “no fault” insurance basis.

Fraud, Forgery or False Impersonation. A title insurance policy is not qualified by “the authenticity of the title documents obtained.” What this means is that if an innocent person acquires an interest in a property in good faith from someone who is acting in a fraudulent manner (for example the seller does not actually own the property), that person can be compensated. The lender is also insured in the event of lawyer or third party fraud. Please note that the BC land title registry system is has a very high level of integrity and this kind of fraud is extremely rare.

Errors in Public Records. While this is not as relevant in British Columbia given our Torrens System of electronic land registration, title insurance does cover errors in public records, including incorrect information on tax certificates.

Often one of the greatest financial priorities for our clients is to reduce or pay off their mortgage as quickly as possible. By doing so, they save substantial amounts of money in interest charges alone. Remember that mortgage interest is not tax-deductable in Canada (unless the mortgage is for a business purpose), and payments are made with after tax dollars.

In order to assist our clients better, we recommend the following Government of Canada website which offers very helpful information about how you can reduce your mortgage faster. The website covers accelerated payments, increasing the amount of your payment, making extra lump sum payments and paying extra on your payment dates.
To view this article, please click here.

Unless your mortgage money is being borrowed for a business purpose, mortgage interest is typically not tax-deductible in Canada. In other words, interest on borrowed money can be tax deductible if the money is borrowed to earn investment or business income only.

This information has been provided for you as a courtesy only and is not to be taken as tax advice. Please speak to your accountant or contact us and we will be happy to refer one to you.

When a person dies without a Will, the Estate Administration Act establishes the people who have a right to administer the estate.

In order of priority they are: Spouses, providing the spouse has not lived separate and apart from the deceased person for more than one year immediately before death, and includes a common law spouse (including a same gender spouse), providing the common law spouse has lived with the deceased person in a marriage-like relationship for a period of at least 2 years immediately before death. Children, grandchildren (or a guardian on their behalf) Parents Siblings and children of predeceased siblings Nieces and nephews Next of kin of equal degree of relationship.

Any one of the heirs to an estate can administer the estate with the consent of the other heirs. If there is no next of kin willing then the Public Guardian and Trustee as Official Administrator for BC may administer the estate. The Public Guardian and Trustee will not usually administer estates with assets less than $5,000 as this is neither practical nor cost effective.

• Making funeral arrangements
• Identifying, securing and dealing with assets
• Obtaining Letters
• Probate (where there is a will) or Letters of Administration from the Court
• Identifying and paying valid debts and claims against the estate
• Filing tax returns
• Dealing with any legal issues that arise
• Identifying, locating and distributing the balance of the estate to the rightful heirs and/or beneficiaries.

In order for a Will to be valid, it must consist of the following:

• be prepared by a person who is 18 years old or over
• be prepared voluntarily and without pressure from any other person
• be prepared by a person who is of sound mind; that is, the person must
• be fully aware of the nature of the document being written or signed and aware of the property and the identify of the people who may inherit
• be in writing
• be signed by the person making the will in the presence of two witnesses
• be signed by the two witnesses, in the presence of the person making the Will, after it has been signed

Although it will be legally valid even if it is not dated, it is advisable to ensure that the Will also includes the date on which it is signed. As soon as the will is signed and witnessed, it is complete

The bank’s Power of attorney allows the person named to manage your assets deposited with that bank only.

There are two types of Power of Attorney.

A Continuing Power of Attorney or a Power of Attorney for Property deals with your personal possessions and finances.

A Power of Attorney for Personal Care deals with your personal health care decisions such as hygiene, shelter and consenting to medical treatment.

The term “attorney” refers to the person you give the authority to and should not be confused with your lawyer.

Who do you want to manage your finances?

What instructions will you give them?

Will it be limited or general?

Do you want more than one attorney, If you do want more than one, are they to act jointly or jointly and severally?

If your attorney can’t act or continue to act, do you want to name a substitute?

Kearns & Company uses state of the art computer systems that allow us to electronically file most land title documents on line. Our staff is highly trained and knowledgeable in all aspects of real estate conveyancing and is available to assist you throughout your transaction.
If you have any questions that we have not addressed in this section, please contact our firm and we would be happy to assist you.