How does Property Transfer Tax affect you?
Very generally, Property Transfer Tax (PTT) is paid by anyone who has land transferred into their name, unless they qualify for an exemption. Property Transfer Tax is 1% on the first $200,000.00 of the property’s fair market value and 2% on the remaining fair market value, as of the date of registration. PTT is payable when the transfer is registered with the Land Title Office.
When do you have to pay PPT?
There a many transactions subject to PTT. The most common are:
- Real estate purchases including single family and strata/condo purchases.
- Adding another person or persons to title of a property.
- life estate
- transfer as a result of corporate reorganization
First Time Home Buyers’ Program
The First Time Home Buyers’ Program reduces or eliminates the amount of PTT you pay when you purchase your first home. If you qualify for the program, you may be eligible for either a full or partial exemption from the tax.
To qualify as a First Time Home Buyer, the Purchaser must meet the following criteria:
- never owned an interest in a principal residence anywhere in the world at any time;
- is a citizen or a permanent resident of Canada;
- has resided in B.C. for 12 consecutive months before registration, or filed income tax as a British Columbia resident in two of the past 6 years;
- will move into the property within ninety-two days after registration, and;
- will reside in the property for at least one year.
To obtain full exemption, the purchase price must not exceed $475,000.00. A partial exemption is available for homes between $475,000.00 and $500,000.
Applies to transfers between husbands and wives, and between parents, children and grandparents.