BUYING OR SELLING YOUR HOME
Mohamed Salim Contractor
12-23-2019
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CONVEYANCING IS THE PROCESS, WHICH IS DONE BY A NOTARY OR LAWYER TO TRANSFER LEGAL TITLE TO A PROPERTY THAT HAS BEEN SOLD TO A NEW OWNER.
Buying:
A Notary acting for the buyer acquires all the information about the property (title search, strata, taxes, mortgages, etc.) and makes sure that all money is distributed and adjusted correctly. Therefore, my role as a notary is to make this process a smooth and painless experience for you. Apart from the purchase price, it would help if you looked for expenses as mentioned below:
Property Transfer Tax:
In order to qualify for a full exemption for a property (fair market value less than $500,000 less or equal to 0.5 hectares) in BC, you must:
• be a Canadian citizen or permanent resident
• have lived in British Columbia for 12 consecutive months immediately before the date you register the property or filed at least two income tax returns as a B.C. resident in the last six years
• have never owned an interest in a principal residence in any part of the world at any time
• have never received a first time home buyers' exemption or refund in his or her life
• use the property as your principal residence only
https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/exemptions/first-time-home-buyers
Strata Forms B and F
Property Tax adjustment
Utility Adjustment
Insurance Binder fees (Fire Insurance)
Tax Certificate
Land Title cost (Title searches, registration of mortgager and transfer of ownership, State of Title Certificate cost, etc.)
Strata Plan cost
Trust admin fees
Move-in and Move out fees ( if applicable)
Legal fees
Software fees, courier, Admin fees
Rental adjustment, if the property you are buying is a rental property
Other adjustments as needed
Although there are no income tax issues for Non-Resident Purchasers, there is the Foreign Buyers Property Transfer Tax. This is a tax of 20% of the Purchase Price and must be paid by anyone who is not a Canadian citizen or a Permanent Resident or registered under the Provincial Nominee Program. This applies to any property within:
• Greater Vancouver Regional District
• Capital Regional District
• Fraser Valley Regional District
• Regional District of Central Okanagan
• Regional District of Nanaimo
For further information on the Foreign Buyers Tax, please visit the B.C. government page at:
http://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand/additional-property-transfer-tax
Selling:
A Notary acting for the seller has to make sure that all the mortgages or other liens or charges are removed from the title. From the sale proceeds, you need to look for expenses as mentioned below:
Mortgage discharge fees
Legal fees
Software fees, courier, Trust Admin fees
Rental adjustment, if the property you are selling is a rental property
Move out fees for a strata property( if applicable)
Non-Resident Sellers
The Income Tax Act of Canada provides that whenever a non-resident sells a property, the non-resident is required to pay the appropriate amount of taxes on any capital gain. To satisfy the Buyer that the exact amount of taxes are paid, the Seller must provide to the purchaser, on or before closing, a clearance certificate from Revenue Canada. The amount owing is deducted from the sale proceeds and sent directly to the federal government by the Seller’s notary or lawyer.
Family Transfer:
A notary can assist you in adding or removing a family member to or from the title. Although these types of transfers are exempt from property transfer taxes, there could be some income tax implications.
Property Transmission:
A Notary can assist you to transfer real property to the survivor of a joint tenancy when the other joint tenant has predeceased. As well, a Notary can help you to transfer real property by an Executor or Administrator of someone’s estate to the beneficiaries of an estate. Although this type of transfer is also exempt from property transfer taxes, a competent Notary can guide you through this process and make sure the transfer or transmission is done appropriately, avoiding any income tax liability or fraudulent conveyance issues.
Mortgage Refinancing & Home Equity lines of credit:
When you make changes to your current mortgage, you require a refinancing process, which implies a discharge of the existing mortgage and the acquiring of a new one. In other words, you are borrowing money against the value of your home using your home as security.
Please feel free to contact me if you are looking for a notary to complete your home (buying or selling or refinancing or family transfer) conveyancing part. We also provide services related to Estate Planning (Wills, Power of Attorney, Representation Agreement), notarizations, affidavits, making contracts, filing the builder’s lien, etc.
Mohamed Salim Contractor
M.Sc, M.A(Applied Legal Studies)
Notary Public
Office:6045035025
Fax:6045035045
Cell: 6048173022
Email: salim@salimnotary.com
Website: www.salimnotary.com
Notary Office Address:
Salim Contractor Notary Corporation
Unit# 219, 7928 128 Street
Surrey, BC V3W 4E8
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