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The British Columbia
Provincial Government imposes a property transfer tax which must be
paid before any property can be legally transferred to a new owner.
The tax is 1% on the first $200,000 of the property value and 2% on
any value over $200,000. Some first time home buyers (using the
property as their principle residence) may be exempt from this tax if
the purchase price is under $375,000 (portional rebates may also be
available on property up to $400,000) - to find out if you qualify,
contact the Property Transfer Tax office through the Govenment of
British Columbia.
Harmonized Sales Tax
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If you purchase a newly constructed home, you will be subject to 12% HST on the
purchase price. However, a rebate of up to $26,250 is available and will reduce the
HST paid for more information please refer to web site:
http://www.cra-arc.gc.ca/menu-eng.html
HST tax also applies on the resale of accommodations which have been rented out
for short-term/nightly rentals. The payment of HST can be deferred if the new buyer intends
to offer the property available for short-term/nightly rental for ninety percent (90%) of
the time and becomes a HST registrant. Becoming a HST registrant is a relatively
straightforward procedure of completing approximately four forms. Once you are a
HST registrant, you are entitled to claim credits for the HST that you pay, for
example, on property management fees, hydro, cable, telephone. You are then required to charge,collect and remit HST on the nightly rentals, which in
some instances may be done through your property manager. You will be required
to annually file a HST Return.
Property Tax
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If the current owners have
already paid the full year’s property taxes to the municipality of
Whistler, you will have to reimburse them for your share of the
year’s taxes.
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Strata fees
Purchasers will be
responsible for paying monthly maintenance charges for their Whistler
property. The Strata Corporation is also entitled to levy special
assessments for extraordinary expenses, should there not be sufficient
money in the contingency reserve fund. Purchasers should determine
what rights they have to use the common areas such as parking stalls
and lockers, if applicable.
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Whistler Resort Association
Fees (Tourism Whistler fees)
These are quarterly fees
payable to the Tourism Whistler for Whistler Resort Association
and are calculated based on the number of
bed units (one bedroom equals two bed units) present in the
accommodations, and is dependent on the use of the property. Should
you be using the property for only personal use and not have it
available for rental more than 14 days per year, you may file a
Declaration with the Whistler Resort Association to pay a lower rate
of fees. The lower rate of fees is not available to fractional
interest (quarter interest) or properties that are subject to a phase
one covenant in the town center.
For more detailed
information about bed units contact Tourism Whistler at (604)
932-3928.
Appraisal Fee
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When the lending
institution requires an appraisal of the property before approving
your loan, it may be your responsibility to pay the appraiser’s fee.
Survey Fee
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The lending institution
may also require that a survey certificate be presented to
them. The purpose of survey is to formally establish the boundaries of
the property and to ensure that all buildings are within those
boundaries. Note: Lending institutions may ask for either a building
location survey, which establishes where a building is located on a
property, or a monumental survey, which establishes the actual
boundaries of a property. If the current owner cannot provide a recent
survey certificate, if will be your responsibility to pay the
surveyor’s fee.
Life & Disability
Mortgage Insurance
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At your option, you may
purchase insurance which will ensure that your outstanding mortgage
balance is paid if you die or become disabled.
Fire & Liability
Insurance
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The mortgage lender will
insist that you purchase an insurance policy which guarantees that, in
the event of fire, the lender will receive the balance owing on the
mortgage loan before you receive any insurance proceeds.
Legal Fees
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The transfer of property
ownership from the seller to the buyer must be recorded in the Land
Title Office in order to protect the new owner’s interests.
You will probably want to
engage a lawyer or notary public to act on your behalf during the
completion of your purchase. The lawyer or notary public will charge a
fee for this service, plus disbursements, including the Land Title
Registration fee. If you are financing your purchase with a new
mortgage loan, there will be a further fee and disbursements to
prepare and register the mortgage documents.
Other last-minute
costs you shouldn’t forget to set some money aside for:
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moving expenses
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deposits required by
utility companies
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household goods such as
kitchen appliances, garden equipment, garbage cans, tools, window
coverings, etc. redecorating or renovations
