How to Sell a Revenue Property in Vancouver

15% Tax on Foreigners Buying Property in Vancouver

 

Additional Property Transfer Tax on Residential Property Transfers to Foreign Entities in the Greater Vancouver Regional District

Property Transfer Tax Act Effective August 2, 2016, an additional property transfer tax applies to residential property transfers to foreign entities in the Greater Vancouver Regional District.

Where it applies to:

The Greater Vancouver Regional District includes Anmore, Belcarra, Bowen Island, Burnaby, Coquitlam, Delta, Langley City and Township, Lion’s Bay, Maple Ridge, New Westminster, North Vancouver City and District, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, Surrey, Vancouver, West Vancouver, White Rock and Electoral Area A. The additional tax does not apply to properties located on Tsawwassen First Nation lands.

When it applies:

The additional tax applies on all applicable transfers registered with the Land Title Office on or after August 2, 2016, regardless of when the contract of purchase and sale was entered into.

Who it applies to:

Foreign Entities Foreign entities are transferees that are foreign nationals, foreign corporations or taxable trustees.

Foreign nationals are transferees who are not Canadian citizens or permanent residents, including stateless persons.

Foreign corporations are transferees that are corporations:

• not incorporated in Canada or

• incorporated in Canada, but controlled in whole or in part by a foreign national or other foreign corporation, unless the shares of the corporation are listed on a Canadian stock exchange.
Additional Property Transfer Tax on Residential Property Transfers to Foreign Entities

Taxable trustees are trustees that are a foreign national or foreign corporation, or a beneficiary of a trust that is a foreign national or foreign corporation.

Applying the Additional Tax

The additional tax on property transfers to foreign entities is 15% of the fair market value of the foreign entity’s proportionate share of a residential property located in whole or in part in the Greater Vancouver Regional District, excluding Tsawwassen First Nation lands. This tax applies in addition to the general property transfer tax. The additional tax does not apply to non-residential property. The value of the residential portion of a transfer is calculated in the same way as for the property transfer tax. The additional tax applies on the foreign entity’s proportionate share of any applicable residential property transfer, even when the transaction may normally be exempt from property transfer tax.

This includes transactions such as:

• a transfer between related individuals

• a transfer resulting from an amalgamation

• a transfer to a surviving joint tenant

• a transfer where the transferee is or becomes a trustee in relation to the property, even if the trust does not change The additional tax does not apply to trusts that are mutual fund trusts, real estate investment trusts or specified investment flow-through trusts.

 

How Vancouver Realtors Split Commissions

Are Real Estate Commissions Split in Vancouver?

Yes! When a Realtor is hired by a Seller to list a property for sale, the Listing Contract states that the Seller will pay this Realtor (Sellers Agent/Listing Agent) a commission should the property sell during the period in which the Listing Contract is in force.

Now, if a prospective seller was to calculate what they would have to pay in terms of commission (Want to know how much quick? Check out this Realtor Commission Calculator!), some might think it a lot of money to go to one person, but that’s not really what’s going to happening!

Real Estate Commission Splits = Buyers Agent Bait?

In Vancouver, The Sellers Realtors (Sellers Agents/Listings Agents) split around HALF  Continue Reading…

What is a Home Inspection in the Vancouver Real Estate Market?

Real Estate Home Inspections in the Vancouver Explained!

There is a lot of confusion surrounding a home inspections in Vancouver particularly among first time home buyers.

Common questions include: What is a Home Inspection? Whats included? Are home inspection for the benefit of the buyer? For the seller? For the bank/lender? Will the seller be able to see the inspection? etc.

To answer these common questions, Dave Brighton from Brighton Home Inspections has been kind enough to meet with us to answer these questions for us.

What is a Home Inspection in Vancouver?

A home inspection is   Continue Reading…

Selling a Revenue Property in Vancouver 1 | Capital Gains Tax and Deducting Commission in Canada

Selling a Revenue Property in Vancouver 1 | Capital Gains Tax and Deducting Real Estate Commissions in Canada

So, you’ve decided to sell an investment condo or other revenue property in Vancouver. The first thing you’ll want to do is talk with your mortgage lender to check how much your mortgage penalties are going to be.

Once there is clarity on the costs to end the mortgage you have to consider The Taxman, aka Canada Revenue Agency (CRA).

Thinking of Selling?

Use this form to find out how to sell your home sooner and for more money.

  • Should be Empty:

I recently had the pleasure of meeting with Vancouver Accountant Sean Akeroyd with Akeroyd & Leung about the tax implications of selling an investment property in Canada.

Are The Sale Proceeds of an Investment Property in Canada Taxable?

When selling a revenue property in   Continue Reading…

Pre-Listing Home Inspections for Sellers in Vancouver with Dave Brighton

Inspect Your Own House in Vancouver Before Selling it?

Yes! Sometimes Sellers in Vancouver will get their own inspection on their home by a qualified Home Inspector before listing it for sale to get a very clear idea of the mechanical condition of their property. But why?

Why Get a Pre-Listing inspection on a Home in Vancouver?

I recently had the pleasure of talking to Dave Brighton, Home Inspector with Brighton Home Inspections on pre-listing inspections in Vancouver.

Thinking of Selling?

Use this form to find out how to sell your home sooner and for more money.

  • Should be Empty:

Inspections done on behalf of a Seller are done for several reasons:

  1. Increased Certainty in Negotiations – Many Buyers in Vancouver  Continue Reading…