These Real Estate Terms are specific to Real Estate Transactions in British Columbia (BC).
Most of the Real Estate Terms set out in the Real Estate section are also applicable to British Columbia real estate transactions.
Buyer’s Statement of Adjustments – is the statement of adjustments specific to the Buyer and sets out the applicable Debits and Credits of the Buyer respecting the Property. CLICK HERE to see an actual Buyer’s Statement of Adjustments.
First Time Home Buyers – there is an exemption from the Property Transfer Tax if you qualify for the First Time Home Buyers Exemption. The general principles are that you are a Canadian citizen, the property is your principle residence and you have maintained a principle residence in British Columbia for the prior year. The section is technical, so if you believe you have met these minimum requirements, make further enquiries to see if you do indeed qualify. There are also limits respecting the value of the property.
Form A – is the name for Transfer of Land and is the only form BC will
allow to be used at the Land Title Office to transfer Property. CLICK HERE to see an actual Form A Transfer.
Form B – is the name for a Mortgage and is the only form BC will allow
to be used at the Land Title Office to mortgage a Property. CLICK HERE to see an actual Form B Mortgage.
Form C – is the name for the form that is used to register all other interests in land in BC such as leases, options to purchase and easements.
GST Certificate – is a certificate that is obtained from the Seller dealing with whether GST is payable by the Buyer or not. In most sales of USED residential properties, no GST is payable, whereas generally GST is payable on NEW residential properties. This issue must be dealt with on your purchase. CLICK HERE to review an actual GST Certificate.
Prescribed Mortgage Terms – are a set of mortgage terms that are prescribed by legislation and can be selected in the Form B as the terms that are applicable to the mortgage. CLICK HERE to read the Prescribed Mortgage Terms.
PST – Provincial Sales Tax is a tax created by the British Columbia Government in the amount of 7.5%. This tax is not payable by an Alberta Purchaser if an Alberta Lawyer, who is licensed to practice in BC, acts for you.
PTT – see Property Transfer Tax
Property Transfer Tax – is a tax created by the British Columbia Government charged on the sale of every piece of real estate in British Columbia, with few Exemptions. This can be a significant sum of money. The tax is equal to 1% of the first $200,000 of the Purchase Price and 2% on the balance of the Purchase Price. Therefore, the property transfer tax on a $500,000 Property would be $8,000. (($200,000 x 1%) + ($300,000 x 2%)). This amount must be paid at the time Title is registered at the Land Title Office.
Property Transfer Tax Exemptions – There are some BC purchase/transfers of real estate which are exempt from the PTT. If you believe your transaction is exempt, you should have it reviewed and you should also know that your claim for an exemption will likely be reviewed by the BC Government. CLICK HERE to read about the transactions that are EXEMPT from Property Transfer Tax. If you are a First Time Home Buyer you may qualify for CLICK HERE to read about what is necessary to qualify.
Property Transfer Tax Form – This is a mandatory form which is filed with the Form A Transfer and Form B Mortgage (if applicable) at the Land Title Office. This form provides information respecting the transaction as well as the calculation of the applicable Property Transfer Tax. CLICK HERE to see a “regular” Property Transfer Tax Form. If you are claiming an “exemption”, there are other forms to use.
Residency Certificate – is a certificate obtained by the Buyer from the Seller whereby the Seller discloses whether he is a resident of Canada or not. Most Sellers in Canada are residents, however, if the Seller is not a resident, then there will be a withholding of 25% of the sale price from the Seller until a Clearance Certificate is obtained. CLICK HERE to read more about Non-Resident Sellers. CLICK HERE to see an actual Residency Certificate.
Seller’s Statement of Adjustments – is the Statement of Adjustments specific to the Seller and sets out the applicable Debits and Credits of the Seller respecting the Property. CLICK HERE to see an actual Seller’s Statement of Adjustments.
Standard Mortgage Terms – is the name given to the mortgage terms that are filed by each Lender and given a specific number by the Land Title Office. When preparing a Form B, reference is made to the specific number which automatically includes these terms as part of your Mortgage.
State of Title Certificate – is an official document obtained from the Land Title Office which confirms the state of the title to a property at a point in time. A State of Title Certificate is obtained after the Seller’s Mortgage is discharged from the title. CLICK HERE to see an actual State of Title Certificate.
Survey Certificate – is a certificate prepared by a BC Land Surveyor that locates the position of the House in relationship to the Lot lines. This is used in BC sometimes to satisfy the Lender that the property they are loaning against does not have any issues respecting encroachments into the adjoining property and is similar to a Real Property Report.