Buying or selling a home in BC is an exciting but complex process. It is important to approach the journey with the right professionals by your side. For a purchase transaction, having an experienced realtor, an informed mortgage broker, and a knowledgeable real estate lawyer can make all the difference.

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The process outlined below provides a general overview of the steps involved when purchasing real estate in BC.

Information Collection

At the beginning of your home-buying journey, you will need to gather a range of information. Your realtor and mortgage broker will be the key players to get you started.

• Realtor: Your realtor will help you find properties that meet your needs, negotiate the offer, and guide you through property inspections. Let your realtor know about your legal representation so they can coordinate effectively with your legal team. Your lawyer can assist with reviewing your offer and providing legal advice to remove certain subjects.
• Mortgage Broker: Your mortgage broker will help find the right financing and help you understand your budget, secure mortgage pre-approval, and fulfill the lender’s requirements. You will need to provide your mortgage broker with documents such as proof of income and tax returns to begin this process. Your mortgage broker will coordinate with your lawyer to ensure the lender’s conditions are fulfilled and you receive the mortgage advance on time.

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Ensure Your Lawyer is on Your Lender’s Approved Solicitor List

A crucial aspect of buying a home in BC is working with a lawyer who is also recognized by your lender. Lenders require that you use one of their approved solicitors to manage their closings, including registering the mortgage charge on title and fulfilling their other conditions. Having a lawyer who is already approved by your lender can save time and reduce any potential for delays during the closing process. Fortunately, KSW Lawyers is on most approved solicitor lists.

Buying & Closing Costs

Before you start the buying process, it is important to understand the costs involved. Being informed about your buying and closing costs will help you budget appropriately.

• Deposit: The amount you need for a deposit will depend on the price of the home and what you negotiate with your realtor in your offer to the seller. The balance to complete will be provided at the time of closing when you meet with your lawyer.
• Closing Costs: In addition to your deposit, there are other costs associated with closing your home purchase. These can include property transfer tax, legal fees, insurance costs, property tax, strata maintenance adjustments, and other administrative fees. Your lawyer will provide you with an accurate estimate of your closing costs and ensure that all the necessary legal steps are completed on time.
• Goods and Services Tax (GST): GST is applicable when purchasing some homes. For example, when you purchase a home from a Developer, GST will apply on the purchase price. GST is usually exempt when the property is used residential housing. It is best to ask your lawyer if you have questions related to the applicability of GST.
• Property Transfer Tax: This one-time tax is calculated based on the price of the home. Your lawyer will help you understand how this tax works and ensure that it is properly calculated and paid at the time of closing.

Potential Tax Exemptions

There are several tax exemptions and rebates available to homebuyers in BC that can reduce your overall costs. For example, the First-Time Home Buyers’ Program can exempt you from paying property transfer tax on homes up to a certain value. Other exemptions may apply depending on your specific situation. It is best to speak to your lawyer about possible tax exemptions that may apply in your transaction.

Final Thoughts

Buying a home in BC is an exciting milestone, but it is important to have right legal support. Working with a reputable law firm ensures that your legal rights are protected and that all aspects of your transaction are handled efficiently. Your lawyer will guide you through every step of your real estate transaction to ensure you close the deal successfully.

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