Whether you are buying or selling or both it can be a very exciting but stressful process. For most people, their home is their largest single investment. We want to make the process as easy and understandable as possible.

Whether first-time buyers or seasoned investors, our clientele benefit from the knowledge and efficiency earned through our years of experience.  Don’t hesitate to contact us for assistance.

We act for clients primarily in Nanaimo but the information provided applies throughout B.C.  We also act for clients outside of B.C. where we utilize technology to streamline the closing process.

Closing Costs

“What’s it going to cost to complete my transaction?” is the most commonly asked question.  And for most people, they are thinking just in terms of legal fees when they really need information on:

  • Legal Costs
  • Third-Party Closing Costs
  • Property Transfer Tax
  • Goods and Services Tax and
  • Closing Adjustments

Buying

Information we will need if you are buying:

  • A copy of the Contract of Purchase and Sale (through your realtor if you used one or directly from you if not)
  • Full names, occupations and contact information for all of the buyers
  • Buyers address if they will not be moving into the new property
  • The name of your realtor, lender, mortgage broker, and insurance agent
  • Name of your strata management firm or the person who manages the strata corporation
  • Your address, e-mail, fax and phone numbers
  • Information regarding any existing tenants
  • Surveyor’s Certificate, if one is available
  • Two pieces of identification, one must be photo ID
  • Whether you are to be registered as Joint Tenants or Tenants in Common
  • If you are a first-time buyer, your birth date, Social Insurance Number and a list of where you have resided for the last two years

Selling

Information we will need if you are selling:

  • A copy of the Contract of Purchase and Sale (through your realtor if you used one or directly from you if not)
  • Your forwarding address and phone number
  • Your current address, e-mail, fax and phone numbers
  • Copy of your most recent mortgage statement
  • The name and phone number of your realtor
  • Information regarding any existing tenants
  • Surveyor’s Certificate, if one is available
  • Two pieces of identification, one must be photo ID

Mortgages

Information we will need if you are refinancing:

  • Your address, e-mail, fax and phone numbers
  • Copy of your most recent mortgage statement
  • Name and phone number of your lender/mortgage broker
  • Name and contact information for your insurance agent
  • Surveyor’s Certificate, if one is available
  • Void cheque
  • Two pieces of identification, one must be photo ID

Refinancing your home is a pretty straightforward process once you have selected from the many mortgage products available on the market. The cost for a refinance can vary, depending on what is being paid out. Please contact our office for a quote. To help alleviate the stress of refinancing it is important to understand the closing process step by step:

Private Sales

We can assist you with the preparation of a Contract of Purchase and Sale if you have reached an agreement with a prospective buyer or if you are the buyer. We charge an additional fee for this service.

Information we will need if you are selling privately:

  • Name, address and contact information of buyers and sellers
  • Legal description of the property
  • Purchase price
  • Amount of deposit
  • Any conditions (subject clauses)
  • Closing dates

First Time Buyers

First Time Buyers are usually looking for answers to the following questions:

  • Do I qualify for an exemption under the provincial Property Transfer Tax?
  • Can I take money out of my RRSP under the federal Home Buyers’ Plan?
  • What are my Closing Costs and adjustments going to be?
  • I have a binding Contract of Purchase and Sale and been approved for a mortgage, what is the process or the Closing Steps?

The Home Buyers’ Plan is available to “first time buyers”. Unlike the Property Transfer Act, a purchaser can qualify as a “first time buyer” more than once if they or their spouse have not owned a principal residence for approximately four years. The Home Buyer’s Program allows a first time buyer to withdraw up to $20,000 without paying tax on the withdrawn amount. The home being purchased must be a principal residence, can be existing or being built and the RRSP must be repaid within 15 years with minimum payments of 1/15th of the withdraw amount (see Home Buyers’ Plan for more information).

Non-Residents

Sellers

To avoid liability for non-resident sellers’ unpaid taxes, purchasers must withhold a portion of the sale proceeds until a non-resident seller has provided a Clearance Certificate from Canada Customs and Revenue Agency. The holdback is normally 25% but could be higher depending on the use of the property.

A non-resident seller should retain the services of a tax professional to assist in obtaining a Clearance Certificate. This should be done as soon as possible as the process can take six to eight weeks. Under circumstances where the holdback would not leave sufficient funds to payout an existing mortgage at time of closing of the sale, a seller can claim hardship to expedite the issuance of a Clearance Certificate. A Clearance Certificate will only be issued once the tax is paid. Canada Customs and Revenue Agency will review the particular sale transaction to determine whether or not capital gains tax is payable but will also require payment of any other taxes outstanding or payable by the seller.

The seller can claim certain expenses in determining the adjusted cost base including Property Transfer Tax, Goods and Services Tax, legal fees on the original purchase, and any capital improvements made, including strata assessments. The commission, tax and legal fees on the sale are not deductible for purposes of calculating tax owing at the time of the sale. The seller can claim these expenses by filing a Canadian tax return subsequent to the sale.

Buyers

Non-residents cannot currently purchase property in British Columbia.