If you are considering transferring property in British Columbia, it’s important to be aware of the Property Transfer Tax (PTT) that typically applies.
The PTT rates on residential properties as of 2024 are as follows:
1% of the purchase price up to and including $200,000;
2% on the portion of the purchase price greater than $200,000 and up to and including $2,000,000;
3% on the portion of the purchase price greater than $2,000,000; and
An additional 2% on the portion of the purchase price greater than $3,000,000.
However, there are scenarios where you might qualify for a full or partial PTT exemption, potentially saving you a significant amount of money. Here are some common exemptions:
-
Purchasing Your Parents’ Principal Residence:
If you are buying the home where your parents primarily reside, you may be eligible for an exemption.
-
First-Time Home Buyer:
If this is your first time purchasing a home, you might qualify for a PTT exemption.
-
Newly Built Home:
Buying a newly constructed home can also make you eligible for a PTT exemption.
-
Changing Title from Joint Tenants to Tenants in Common:
If you are altering the ownership structure of your own home, such as changing from joint tenants to tenants in common, you might qualify for an exemption.
-
Purchasing Your Parents’ Family Farm:
Acquiring the family farm from your parents can qualify for a PTT exemption as well.
To take advantage of these exemptions, it’s crucial to prepare the PTT return form accurately. Consulting with a lawyer before transferring property can help ensure you understand the PTT implications and correctly claim any exemptions you are entitled to.
If you have any questions or need assistance with property transfer tax matters, our Real Estate Law team is to help.