Hani Faraj - Buyer Package March 27

Property Transfer Tax
When you purchase or gain an interest in property that is registered at the Land Title Office,
you're responsible for paying property transfer tax.
You are charged property transfer tax when you make changes to a property's title,
Including:
acquiring a registered interest in the property
gaining an additional registered interest in the property
becoming the registered holder of a lease, life estate, or right to purchase the property
The amount of tax you pay is based on the fair market value of the land and improvements
(e.g. buildings) on the date of registration unless you purchase a pre-sold strata unit. The tax
is charged at a rate of:
1% on the first $200,000,
2% on the portion of the fair market value greater than $200,000 and up to and including
$2,000,000, and
3% on the portion of the fair market value greater than $2,000,000.
For example, if the fair market value of a property is $450,000, the tax paid is $7,000.
EXEMPTIONS FROM PROPERTY TRANSFER TAX IN B.C.
There are certain situations which qualify for exemptions from the newly enforced
property transfer tax. These situations would include if the transfer is of a principal or
recreational residence transferred between family members, or the transfer of the property
is due to a marriage breakdown. There are also exemptions when dealing with the transfer
of a family farm to a family farm corporation or vice-versa, or transfer to a registered
charity.