Frequently Asked Questions
Do I qualify for the First Time Home Buyers' Exemption?
In most of Canada, real estate Buyers pay Property Transfer Tax ("PTT"). In BC, it is calculated at 1% on the first $200,000 and 2% of the fair market value (usually the purchase price) in excess of $200,000. Please note that Canada Mortage and Housing Corporation (CMHC) and the Provincial Property Transfer Tax (PTT) have completely separate and distinct rules for determining your status as a First Time Home Buyer.
For more information and to find out if you qualify for the First Time Home Buyers' Exemption please click on the link below:
The Home Owner Grant is one of three property tax assistance programs offered by the province. The program began in 1957 to help homeowners reduce the amount of taxes they pay on their home.
For all the information on this program, including eligibility criteria and how to claim the Home Owner Grant, please click on the following link:
www.sbr.gov.bc.ca/individuals/Property_Taxes/Home_Owner_Grant/hog.htm
When purchasing a property with others, you must decide whether you want to be on title as Joint Tenants or Tenants in Common.
If you own property with another person as Tenants in Common, on your death your interest in the property becomes part of your estate to be passed on according to your will. As Tenants in Common, you may own unequal interests in the title.
If you own property with another person as Joint Tenants, on your death your interest in the property passes to the remaining Joint Tenant(s) by right of survivorship. It does not form part of your estate. Joint Tenants must own equal interests.
If you have sold your property, and municipal property taxes have been billed but are not yet due, providing that the completion date of the sale falls PRIOR to the tax due date, it is a good idea to hold off on paying the taxes and/or claiming the Home Owner Grant. This is particularly true if you are also buying another property concurrently with your sale.
Part of our job as your Notary is to evaluate each transaction on a case-by-case basis, and determine whether it would be of greater benefit to you to have the Buyer or Seller claim the Home Owner Grant. During the preparation of your paperwork, we will make this determination and advise you accordingly.
If the completion date of the sale of your property falls AFTER tax due date, we recommend that you pay your property taxes and claim the Home Owner Grant, if you are eligible, in order to avoid paying a late penalty.
If you are ineligible for the Home Owner Grant, you may choose to pay the net taxes, leaving the Home Owner Grant unclaimed, in the event that the Buyer may be eligible to claim it, resulting in a savings to you of a proportionate share of the Home Owner Grant. You should be aware, however, that this means that you will be responsible for paying the late penalty of 5% or 10%, depending on the date of claim, on the amount of the unclaimed Home Owner Grant (ie. $570.00 x 5% = $28.50 after July 4th or $570.00 x 10% = $57.00 after August 2nd in the City of Chilliwack).
What is a Power of Attorney?
A Power of Attorney is a legal document that allows a person, known as the Adult (formerly called the Donor), to appoint one or more people, known as the Attorney or Attornies, to make financial and legal decisions for the Adult. A Power of Attorney is only effective while the Adult is alive.
Who can make a Power of Attorney?
Any capable adult can make a Power of Attorney. If there is doubt concerning capacity, an assessment by a medical practitioner or psychologist may be required.
What is an enduring Power of Attorney?
An enduring Power of Attorney continues to be in effect, and allows your Attorney to deal with all of your financial and legal decisions, in case you become mentally incapable because of age, accident or illness. Without the “enduring clause”, an ordinary Power of Attorney ceases to be effective at the same time as the Adult loses his or her mental capacity to act on his or her own behalf. The following is an example of an “enduring clause”:
“In accordance with the Power of Attorney Act I declare that this Power of Attorney may be exercised during any subsequent mental infirmity on my part.”
Can I restrict the powers granted to my Attorney?
Yes, a Power of Attorney can be made specific by either limiting the powers to certain functions or time periods, or by excluding certain functions from the otherwise general powers granted.
Does a Power of Attorney have to be registered?
Until recently, there was no registry available to register a Power of Attorney. The Nidus Registry now fills that role but it is optional.
A Power of Attorney can be registered at the Land Title Office and must be registered if it is to be used in a real property transaction.
Does a new Power of Attorney cancel an existing Power of Attorney?
No. More than one Power of Attorney can be in effect at the same time. The most effective way of ensuring a new Power of Attorney is the only one in use, is to revoke any previously existing Powers of Attorney.
How do I revoke a Power of Attorney?
You can revoke (cancel) your Power of Attorney at any time by notifying your Attorney in writing. Also send a copy of the notice to any organizations, companies or individuals your Attorney deals with on your behalf.
If the Power of Attorney has been registered at the Land Title Office, a Form 8 Notice of Revocation of Power of Attorney would have to be sent to the Land Title Office.
For more information, please click on the following link:
British Columbia Power of Attorney Act:
http://www.bclaws.ca/EPLibraries/bclaws_new/document/ID/freeside/00_96370_01
If you have decided that you would like us to act for you on your purchase, sale and/or mortgage, you simply need to let your realtor (if you are dealing with one) and/or your banker/broker know that you have chosen our office as your legal representative. They will look after forwarding your Contract of Purchase and Sale and/or mortgage instructions to our office. Upon receipt of those, we will contact you by telephone to confirm the information that we need to open your file. If you wish, you may also contact our File Opening Department to advise that your paperwork is on the way, but that is not necessary.
Once your file has been opened by our File Opening Department, it will be assigned to a conveyancer (a fancy word for a legal secretary that works specifically in the area of real estate law), who will be responsible for preparing the necessary paperwork and guiding you step by step through the process.
Once the conveyancer has prepared all of the paperwork that you will be required to sign, she will contact you to make an appointment for you to meet with the Notary to sign the documents.
If at any time you have any questions about your transaction, and our office has not yet contacted you, please do not hesitate to contact us. We are always happy to assist you with any of your questions or concerns.