Buying - Purchasing Costs

Legal Fees (Conveyance) The legal fees and disbursements associated with a real estate purchase are about $1,000 Cdn, assuming a typical purchase conveyance and a conventional mortgage. Legal fees may be higher for out-of-country buyers or non-conventional financing situations. Property Transfer Tax The rate is one per cent on the first $200,000 of the purchase price and two per cent on the balance. Some buyers may qualify for an exemption on the property purchase tax if they meet the following criteria: 1. The buyer has never owned property; 2. The purchase price is less than $225,000; 3. The buyer is a British Columbia resident; 4. The buyer has resided in Canada for the past 12 months and; 5. 70 per cent or more of the purchase price is being mortgaged. HST- Harmonized Sales Tax - A HST of 13% as of July 1, 2010 applies to the purchase of a new property. If you plan to continue nightly rentals, you have the option of becoming a GST registrant and deferring applicable GST fees. All buyers and sellers should review HST issues with their lawyer or accountant. Survey Fees If required by the bank or financial institution, the cost is about $300-$500 Cdn. Building Inspection Fees If desired by the buyer as a condition to the contract, the fee is approximately $300-$500 Cdn. Appraisal Fees This fee is usually paid by your bank or financial institution, but if not included, the cost is $300-$500 Cdn.