RSS

  1. If your deposit was not enough to cover your entire down payment you will be expected to provide the rest of the down payment at move-in time.
  2. Real Estate commissions are paid by the seller, so you have no cost for this.
  3. New properties have a sales tax called GST; this should have been added to the price before the mortgage was obtained so that no funds are needed for this tax at the time of possession if you have a mortgage. When you arrange your mortgage loan, discuss having the GST included in the mortgage amount with your lender.
    For properties under $350,000 the net GST rate is 3.2% for homeowners. Investors who rent out their suite pay 5% GST when they purchase and in most cases get a 1.8% GST rebate when they find a tenant who makes the suite their primary residence.
  4. If you have less than 20% down you will have mortgage insurance (about 2-3% of your mortgage). This premium will be added on top of your mortgage once at the beginning, so you do not have to pay this premium in cash at possession time.
  5. In BC there is a sales tax called the Property Transfer Tax (PTT). This tax does not apply to NEW residences under $750,000 when the property is used as a primary residence by a Canadian citizen or permanent resident. The tax does apply to properties over $750,000, all used properties, bare land and commercial/industrial properties. The rate of this tax is 1% on the first $200,000 and 2% on the balance. On a $400,000 used condo this tax would be $6,000, but because the Yorkson offering is new condos, the tax will not apply.
  6. Your bank may have an appraisal fee to be paid when you buy, but most lenders will waive this fee. If they don’t it is often about $300.
  7. Your lawyer will charge you legal fees to handle your share of legal work for the purchase, these fees are often about $900 and must be paid when you take possession. There may be property tax adjustment of a few hundred dollars when you move in, depending on the time of year that you take possession. [Sometimes your bank will pay part of these closing fees as a gift to you for using them for your mortgage].
  8. Sometimes utilities will charge you a fee of $50 to $70 to hook up power for the first time.
  9. The fire/water/flood/earthquake insurance your mortgage company requires is already provided by your strata corporation.  You do not need to purchase more insurance if you don’t want to.  The included insurance does not include your contents or personal liability. Some buyers purchase additional contents and personal liability insurance.
  10. Finally, there is often the added cost of a moving van to move your possessions in.
Read

Rentals Allowed by a "Form J: the Rental Disclosure Statement"

A "Form J: the Rental Disclosure Statement" also determines whether strata lot owners can rent their lots despite rental restriction bylaws. The Form J:

  • describes the strata lots that may be rented and
  • sets out the date during which the rentals may occur

Under the Strata Property Act, Owner Developers must provide prospective purchasers with a Form J that has been filed with the Superintendent of Real Estate, if the Owner Developer intends to rent or preserve the right to rent any of the residential strata lots.

Rental disclosure statements are only filed by the Owner Developer and are completed individually for each strata lot.

Strata lot owners may have different rights to rent their lots depending on when the Form J was filed.

 For Form Js filed on or before December 31, 2009, a lot that has been designated as a rental lot by the Owner Developer on a Form J remains eligible as a rental lot – regardless of rental restriction bylaws – until either:

  • the lot is sold or transferred by the first purchaser or
  • the date set out on the Form J expires (whichever occurs first)

For the Owner Developer or the first purchaser from the Owner Developer, the effect of the Form J is to preserve the right to rent the strata lot for the length of time set out in the Form J, despite any subsequent rental restriction bylaws.

However, a purchaser who buys the strata lot from someone other than the Owner Developer does not have a right to rent the strata lot. For the new owners, a strata lot may only be rented if there is no rental restriction bylaw or the owner is permitted to rent despite a rental restriction bylaw because of:

  • the family member exception
  • a determination of hardship by the strata council
  • the provision that delays the application of a rental restriction bylaw. The Strata Property Act gives owners who are renting time to comply with a new rental restriction bylaw

For  “Form J: Rental Disclosure Statements” filed on or after January 1, 2010  there are different rules.  The owner-developer can now designate that a strata lot can be rented to a date specified on the Form J.

For these strata lots, a strata lot eligible as a rental remains designated as eligible until the date the rental period expires. The strata lot is not affected by any subsequent rental restriction bylaws until the rental period date on the Form J expires.

This means the right to rent a strata lot can continue from one purchaser to the next as long as the rental period on the Form J remains unexpired. This provision only applies to "Form J: Rental Disclosure Statements" filed on or after January 1, 2010.

Read
Reciprocity Logo The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.