Real Estate Law
HST Threshold being raised to $850,000 effective April 1, 2012
Feb 17th
The Honourable Kevin Falcon, Minister of Finance, held a press conference today in Victoria to announce transition rules for the harmonized sales tax and the affect it will have on the home building industry. Effective April 1, 2012, the threshold for new housing rebates will be increased from $525,000 to $850,000. Furthermore, this rebate will not be available for secondary homes (outside the Metro Vancouver and Capital Regional District).
The Victoria Real Estate Board was present for a pre-briefing with Minister Kevin Falcon, along with other key stakeholders from BC’s housing sector in the province.
We are being told that if any of our clients are considering amending existing agreements as a result of this announcement, they should seek legal advice before doing so.
BCREA is working with legal and tax experts to prepare draft contract language that REALTORS® can include in their listing agreements and Contracts of Purchase and Sale, as well as a series frequently asked questions. This material is expected to be available the week of February 20, and will be posted on the BCREA website as a resource for both REALTORS® and their clients.
Read the whole govenrment announcment here: http://www.newsroom.gov.bc.ca/2012/02/transition-measures-support-new-home-buyers-builders.html
Some of the key elements include:
- The B.C. new housing rebate threshold will be increased to $850,000, effective April 1, 2012 with a maximum rebate of $42,500.
- A provincial grant of up to $ 42,500 will be available for purchasers of new secondary vacation or recreational homes outside the Greater Vancouver and Capital regional districts priced up to $850,000, effective April 1, 2012.
- For newly built homes where construction begins before April 1, 2013, but ownership and possession occur after, purchasers will not pay the seven per cent provincial portion of the HST. Instead, purchasers will pay a temporary, transitional provincial tax of two per cent on the full house price.
- The temporary housing transition measures will be in place for two years, until March 31, 2015. The tax only applies to homes where construction begins before the transition date and ownership and possession occur after.
The BC Ministry of Finance has updated their PST in BC website: http://www.pstinbc.ca/buying_goods/buying_a_home
The Canadian Ministry of Finance has also released its transitional rules, with examples related to the sale of real property. The rules note:
- In the case of a sale of real property, tax generally becomes payable on the earlier of the day on which ownership is transferred to the recipient and the day on which possession of the property is transferred to the recipient under the agreement of purchase and sale. However, where the property supplied is a residential condominium unit in a condominium complex which has not, at the time possession is transferred, been registered as a condominium, tax is not payable until ownership of the unit is transferred or, if earlier, 60 days following the date of registration.
There are several examples listed in the rules, which can be found here: http://www.fin.gc.ca/n12/data/12-017_1-eng.asp
This is big news! Call me if you’d like to discuss or want to be in touch with professional who can give you a legal or accounting perspective.
I’m your Realtor in Victoria, BC
250 216 1217 
“I didn’t understand the Homebuyer’s Plan. What now?”
Feb 17th
If you or someone you know is considering using RRSP’s (i.e withdrawing them from your plan) to purchase a home that you will live in, here is an excellent article outlining how this works. You want to be able to have the funds count as a tax deduction and as well, withdraw them with out paying a withholding tax, but there are certain rules to follow in order to achieve this.
Especially as this is RRSP season, a reminder for those of you who are considering this avenue for your down payment. Click here for the details http://bit.ly/y05V1H and don’t hesitate to call me to discuss further.
I’m your Realtor in Victoria, Fergus Kyne. 250 216 1217
Keeping up with changes to Standard Contracts
Nov 10th
There have been subtle but important changes to some of the wording that you’ll see on both a standard Multiple Listing Contract and also the Contract of Purchase and Sale.
Why does that matter? Fergus Kyne explains why he thinks it should be known by all and how you can be in a better position to focus on what’s most important, negotiating the price you want by being ready to pull the trigger. Simply by having access to a blank contract well in advance will put you miles ahead on your road to securing a deal you’ll be happy with.
One can be emailed to you upon request.
Fergus
Lawyer vs. Notary plus D.I.Y. at Land Titles?
Nov 9th
This is Del Elgersma and myself, he actually did my living will and a purchase conveyence for me as well. I have a lot of respect for Del and the practise he has established with his firm, of which is a partner. You will see him regularly on Two Questions as he is very much sought after for his legal opinion and who’s kidding who, he’s very photogenic.
So, the first question is one that I’ve come across many times in my career. People sometimes tell me they are using a notary for a conveyance and I wonder why, especially as Del says, there can ofter be no difference in the fee.
Don’t worry, I’ll be asking a notary this same question soon enough as well; I’m finding that the best thing business people can do in web 2.0 is to always search for full disclosure with respect to what they share with consumers and the community they are wanting to interact with.
I’m thinking that a notary would be ideal for people who are refinancing a property they already own. But again, if the price is the same as a lawyer…
Obviously I’ll need to investigate more closely what notaries consider as their value proposition and share that with you.
Two Questions has of course a second question, and really this second one was asked half in jest, but there was a time on the standard Contract of Purchase and Sale when there was some language to the effect that, “if a buyer and seller are not prepared to meet at Land Titles at Completion” blahblah, which seemed to indicate that it was at one time possible to exchange a certified cheque (or who knows what kind of tangible asset back in the early days of title law in Fort Victoria) in trade for real estate ownership.
Del clearly puts to rest any fantasy you and your neighbour may have about exchanging ownership of land face to face.
And finally he wore a poppy and I had mine on my overcoat, so further kudos to the man they call Partner. You can email him directly about this or anything else law related here elgersma@beaconlaw.ca and of course Beacon Law Centre with three locations in Sidney, Brentwood, and Victoria on Vancouver Island, BC has a website to explore www.beaconlaw.ca
What has been your experience?
Coming soon, have you seen a blank Contract of Purchase or a Multiple Listing Contract lately? You might want to, if it’s been a while, i.e. six months. Contact us and I’ll make sure you get one emailed to you. Thinking of real estate tranasctions-It makes for good reason.
Over to the Hudson on Friday and Essencia Verde as soon as I can nail down an appointment with Mary Jane Smith of Newport Realty.
Your Realtor in Victoria, BC
Fergus
