After your offer is accepted, you'll follow a step-by-step process to complete your purchase or sale.
Step-by-step process for sellers:
If you have a tenant, ensure the correct notice is given to them so that they'll vacate in the time frame you want. Review this page of my website where it talks about where to locate the proper forms you'll need.
In the next week, the buyers may want to arrange a home inspection. If they choose to go ahead with one, I'll be calling you to arrange access to (for condos) your suite, the parking garage, the roof, the boiler room (if there is one), mechanical room, and a few other areas within the complex. As well, the new buyers will want to view your storage locker so ensure the key is left out on the table and mark where the locker is located within the complex. (for houses) They'll want to view everything. Home inspections usually take 2 hours for condos and townhomes and up to 3 and 1/2 hours for houses.
After the 5-7 business days, your subject removal date should arrive. Here the buyers may or may not remove subjects. If they remove, I'll receive copies of the subject removal form, signed pds, and a copy of the deposit cheque, which I'll forward to you. If they don't, I'll have to have you sign a release form so that we can move on and accept another offer.
Once subjects are removed, you'll choose your notary public or lawyer to act on your behalf. You can scroll down this page or jump to the section where I've listed notary publics and lawyers in my area that you might find helpful.
Then, we wait until completion date where you'll either call your notary public or lawyer and make the appointment at your convenience, or wait until they call you (and they'll request you attend their office at their convenience) where you'll sign all the paperwork. The notary public or lawyer will advise you when you'll receive your funds and review the Statement of Adjustments with you.
After registration of the sale at Land Title's Office occurs, we're allowed to pass along the keys to the new buyer. I'll phone you to arrange a walk-through date and time. We will go through the suite (together) and ensure it's in good condition for the new buyer, as well as check the storage locker (together) to ensure it's empty and ready for the new buyer to put their belongings in it.
The Province increased the threshold for the BC HST new-housing rebate from $400,000 to $525,000 to ensure that, on average, purchasers of new homes up to $525,000 pay no more tax due to harmonization than was currently embedded as PST.
The Province also has transitional rules for new housing. The provincial portion of the HST does not apply to sales of new homes where ownership or possession is transferred before July 1, 2010. In addition, sales of new homes under written agreements of purchase and sale entered into on or before November 18, 2009, are generally not subject to the provincial portion of the HST, even if both ownership and possession are transferred on or after July 1, 2010.
Property transfer tax relief
When you buy a home, the provincial government charges a tax of 1 per cent of the first $200,000 of the purchase price and 2 per cent of the remainder. But if you're a first-time buyer, you can purchase ppt tax-free as long as the purchase price is less than $425,000.
Here's further details:
In most of Canada, real estate Buyers pay Property Transfer Tax ("PTT"). In BC, it is calculated at 1% on the first $200,000 and 2% of the fair market value (usually the purchase price) in excess of $200,000. Please note that Canada Mortage and Housing Corporation (CMHC) and the Provincial Property Transfer Tax (PTT) have completely separate and distinct rules for determining your status as a First Time Home Buyer.
Who Qualifies for the Exemption from the PTT as a First Home Buyer? You qualify for the exemption if:
What Property Qualifies for the Full Exemption?
The property you purchase qualifies if:
More information about the requirements for the exemption from the PTT as a First Time Home Buyer in BC can be found here First Time Home Buyer Eligibility Requirements.
Prepaid property taxes or utility bills - You will have to reimburse the sellers for any prepaid property taxes or utilities.
Sort out your annual tax amount. Do you qualify for the homeowner's grant? Home Owner Grant: BC grant used as a deduction from municipal property taxes for homeowner's principle residence. $570 for those under 65, and $700 for those over 65. Please check with your City or Municipality for the most up-to-date information.
Mortgage loan insurance and application fee - If you get a high-ratio mortgage (a mortgage where you pay less than a 25% down payment) you will have to buy mortgage loan insurance from CMHC or a private company. If you qualify for a 5% down payment, CMHC charges an insurance fee that equals 3.75% of the mortgage. If you put 10% or 15% down, your insurance fees will decrease to 2.5% and 2% respectively. The insurance premium usually gets added to your mortgage.
Sometimes, you may also have to pay an application fee. CMHC's standard fee is $235. CMHC also offers a basic service for a $75 fee but it must be accompanied by an appraisal.
Appraisal - Before your lender approves your mortgage, you may be required to have an appraisal done. Sometimes your lender covers this cost otherwise you are responsible for covering this cost. The fee ranges from $225 to $500.
Survey fee - Your lender may require an up-to-date survey of the property. If the seller did not provide you with one, you will have to pay to have one done. The fee ranges from $225 to $500. Surveys are usually only required on a house.
Home Inspection fee - Most Realtors recommend that you get a home inspection by a certified home inspector. The price for a condo inspection is around $400-450 and the cost for a home inspection on a house is anywhere from $450-550 approximately. Prices vary depending on the home inspector.
Legal fees - Lawyers/Notaries fees for closing the sale range according to the complexity of the deal.
Notary public costs: The approximate cost for handling the conveyancing needs for the sale of a property is around $400-600, and the cost of handling the conveyancing for a purchase of property is anywhere from $700-1500. Prices vary so obtain quotes in advance. Lawyer fees are usually higher.