Buying Property in British Columbia
Your step-by-step guide to making confident, informed decisions in the Columbia Valley real estate market.
Buying real estate in British Columbia, especially in scenic communities like Radium, Invermere, and Windermere, comes with unique considerations. From understanding legal requirements to exploring lifestyle factors, this guide is here to help you feel prepared every step of the way. Whether you’re searching for a mountain getaway or a full-time home in the Columbia Valley, Dave McGrath’s local expertise ensures you're never navigating the process alone.
Key Considerations When Purchasing Real Estate in B.C.
1. Property Transfer Tax
The Property Transfer Tax is a provincial levy collected by your lawyer at closing. The tax is calculated as:
- 1% on the first $200,000 of the purchase price, and
- 2% on the remaining balance.
2. Home Insurance
Your mortgage lender will require proof of home insurance prior to closing. The insurance policy must be in place before the lender disburses mortgage funds.
3. Legal Representation
Purchasers must retain a lawyer licensed to practice in British Columbia. Legal fees will include charges for registering the mortgage and transferring title. We recommend obtaining estimates from several lawyers and consulting your realtor for a list of qualified professionals.
4. Property Taxes
Property taxes in B.C. are due on July 1st and cover the calendar year. Your lawyer will calculate a prorated daily amount and include this on the Statement of Adjustments as a debit or credit, depending on the closing date.
5. Prepaid Fees
If the Seller has prepaid strata fees, utility bills (e.g., water, sewer), or other property-related costs, a prorated reimbursement may be required. These adjustments will be reflected in the final closing statement.
6. Propane Usage
For properties using propane, the tank will be read before closing to determine the remaining volume. Buyers are responsible for reimbursing the Seller for the value of the propane at closing.
7. Property Appraisal
A mortgage lender may require a property appraisal. The Buyer is responsible for the cost, which varies depending on the property. Your lender can provide an estimate.
8. Survey Certificate
In some cases, the mortgage lender may require a current survey certificate. This is not automatically provided by the Seller in B.C. and would therefore be the Buyer's responsibility.
Local surveyors:
- Focus Engineering, Invermere - 250-342-9767
- O2 Geomatics Ltd., Invermere - 250-341-7167
- Global Raymac - 250-261-2835
Due Diligence Prior to Purchase
1. Property Disclosure Statement (PDS)
Your realtor will provide a completed PDS from the Seller. This legal document discloses known issues or defects with the property and becomes part of the Contract of Purchase and Sale.
2. Visual Inspection
Conduct a thorough visual inspection of the property, including ceilings, walls, plumbing, yard, and mechanical systems. Your realtor will assist with multiple showings and must disclose any material facts they are aware of.
3. Home Inspection
Licensed home inspectors in B.C. provide comprehensive property condition reports. The purchase contract should include a subject clause for the home inspection and your satisfaction with the report. If deficiencies are found and unacceptable to you, this clause allows for termination of the contract.
4. Legal Review of Title
It is advisable to make your offer subject to legal review of the property title. Your lawyer will review registered charges, easements, and encumbrances and explain any concerns that may impact your ownership.
Post-Purchase Checklist
1. Electricity Service
Contact BC Hydro:
- 1-800-224-9376 (moving services)
- 1-877-520-1355 (new connections)
- www.bchydro.com
2. Telephone Services
Contact TELUS:
- 250-310-2255 or 1-888-811-2323
3. Home Insurance
Arrange insurance effective on or before possession. Local providers:
- Lambert Insurance - 250-342-3031 or 1-866-342-3031
- East Kootenay Insurance - 250-342-8604