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.