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Buyers & Sellers

Real Estate Jargon

Whether you are making your first home purchase, selling your house, or gathering information, there are a lot of real estate terms that you may not be familiar with, but that’s ok! We are here to help, and to assist you in getting started we have included some terms and definitions that you may encounter when dealing with real estate.

Additional Tax For Foreign Buyers

When the purchaser is not a Canadian citizen or permanent resident or is a foreign corporation, there is an additional Property Transfer Tax on residential property by as much as 20 per cent. If you are a foreign buyer, you need to discuss the tax that could be charged on your property purchase.

Adjustment Dates

The date agreed on by both parties to a real property transaction for the adjustment of property taxes, rent, interest, and other items.

Appraisal Fee

Some lending institutions require an appraisal of the property before approving a mortgage. In some cases, it may be your responsibility to cover the cost.

Completion Date

This is the date when money changes hands and the title is transferred to the buyer’s name. Completion happens before the new owner takes possession of the property to provide sufficient time to process the transaction.

Contract of Purchase and Sale

A standard Contract of Purchase and Sale includes all of the important details about the transaction, and once signed is the binding document between the seller and the buyer.

Deposits

Sellers require a deposit, which is negotiable and is typically five to 10 per cent of the purchase price in the offer. Deposits are made as certified cheques or bank drafts payable to your Realtor’s brokerage and are held in the brokerage’s trust account. Deposit funds count towards the total purchase price.

Down Payments

A down payment is the money you have in your bank account to apply to the property purchase. Most lending institutions require that you put down between five to 10 per cent of the purchase price. If your property is under $1,000,000 and your down payment is less than 20 per cent of the purchase price, your mortgage needs to be insured by the Canadian Mortgage Housing Corporation (CMHC) and you will incur additional fees based on the purchase price.

GST

When purchasing a newly constructed home, you may be subject to a Goods and Services Tax (GST).

Home Buyer’s Plan

The Home Buyer’s Plan allows each first-time home buyer to withdraw up to $25,000 from their RRSPs to purchase a residential property without having to pay taxes at the time of withdrawal. The amount must be repaid over a period of 15 consecutive years.

Interest Rates

Interest is the cost of borrowing money. Interest rates are competitive between various lenders, so you should shop around to get the best rate available at that time.

Legal Fees

After obtaining an accepted offer, you will need to engage a lawyer or notary public to execute the real estate contract and transfer ownership. Fees vary, so shop around and ask people for references.

Loan Application

Some lending institutions charge a mortgage application fee, which can vary between institutions.

Mortgage Term

The term of your mortgage is the length of time you are committed to a mortgage rate, the lender and the associated conditions. Terms range from six months up to 10 years, although the most common is five years

Multiple Listing Agreement

This is the most common type of contract between sellers and Realtors. It is highly recommended for maximum exposure because the property will be listed on the Multiple Listing Service (MLS®). In this arrangement, commissions are shared between the seller’s Realtor and the buyer’s Realtor and their respective brokerages.

Municipal Property Tax

If the previous owners have already paid the annual property taxes, you are required to reimburse them for your portion of the taxes, effective from the closing date. This is typically arranged by a third-party legal professional such as a lawyer or notary.

Possession Date

This is the date the new owner can take possession of the property. When negotiating this date, consider if there are any time frames affecting your choice, such as the possession date of your next property. Your Realtor will be able to help you align the dates for a smooth transition between relinquishing your old property and moving to a new one.

Property Disclosure Statement (PDS)

The three page PDS is a form filled out by the seller disclosing what they know about their property. The PDS itemizes potential problems such as asbestos insulation, unauthorized rental suites, renovations were done without a permit, and unregistered easements or encroachments. This document has a series of questions that allows the sellers to disclose any latent defects (a fault in the property that could not have been discovered by a reasonably thorough inspection before the sale).

Property Transfer Tax (PTT)

The BC government imposes a Property Transfer Tax of one to three per cent, depending on the value of the property, which must be paid when a home is transferred to a new owner. Some buyers may be exempt. We can advise you about this expense given your specific circumstances.

Subjects

In Canadian Real Estate contract negotiation, “subject to” clauses are a home buyer’s safety-hatch. A way to escape the contract if something goes wrong. Three of the most common clauses are: subject to financing, subject to inspection, and subject to sale.

Title

When lawyers and Real Estate professionals talk about “Title”, they are referring to who has legal ownership and the right to use a piece of property. An easy example is to relate this to the board game Monopoly. By purchasing Boardwalk, you are now the owner of the title. The title will also list any easements, rights of way, covenants, building schemes, etc. that may affect the property.

Anti-Flipping Tax
🏦💸💰

On January 1, 2023 the Federal Government introduced a new anti-flipping tax measure that will impact individuals looking to sell their homes or residential rental properties. This new law will apply to property sold on or after January 1, 2023.

The new measure will tax the profits of a home or rental property that has been held for fewer than 12 months before sale as business income. However, if you sell your property because of a change in life circumstances, you may be eligible for an exception from this tax.

WHAT CLASSIFIES AS FLIPPING?

Property flipping is when a home seller (the “flipper”) purchases a home and sells it within a short period of time with the intent of making a profit over the original purchase price. In some cases the flipper will renovate the property in an attempt to maximize the property’s resale value, though this is not strictly required to meet the definition of flipping.

WHY WAS THIS IMPLEMENTED?

The new anti-flipping tax measures are intended to ensure profits from these types of sales on homes & rentals are subject to full taxation as business income. The new measures aim to reduce speculative demand, which aims to bring down the high cost of the housing market and make housing affordable for more Canadians.

WILL IT WORK?

In my opinion, no! In 2021, Foreign buyers made up 1.1% of home sales in BC. Yes, we were in the middle of a pandemic and borders weren`t fully open, but home prices still surged during this time. It`s simple economics; there aren`t enough homes to fulfill the demand of active buyers and new residents entering our province. The Provincial and Federal governments can implement laws to slow the market for short periods, but until we can build enough homes for this demand, we will always end up right where we started!

For more details or for any questions, hit me up! I`m always here to help!
📩📲📞

________________________

#realestate #buyers #sellers #taxes #DogsOfInstagram #Dogs #Vancouver #Vancity #YVR #Vancity4Sale

Open
Anti-Flipping Tax 🏦💸💰 On January 1, 2023 the Federal Government introduced a new anti-flipping tax measure that will impact individuals looking to sell their homes or residential rental properties. This new law will apply to property sold on or after January 1, 2023. The new measure will tax the profits of a home or rental property that has been held for fewer than 12 months before sale as business income. However, if you sell your property because of a change in life circumstances, you may be eligible for an exception from this tax. WHAT CLASSIFIES AS FLIPPING? Property flipping is when a home seller (the “flipper”) purchases a home and sells it within a short period of time with the intent of making a profit over the original purchase price. In some cases the flipper will renovate the property in an attempt to maximize the property’s resale value, though this is not strictly required to meet the definition of flipping. WHY WAS THIS IMPLEMENTED? The new anti-flipping tax measures are intended to ensure profits from these types of sales on homes & rentals are subject to full taxation as business income. The new measures aim to reduce speculative demand, which aims to bring down the high cost of the housing market and make housing affordable for more Canadians. WILL IT WORK? In my opinion, no! In 2021, Foreign buyers made up 1.1% of home sales in BC. Yes, we were in the middle of a pandemic and borders weren't fully open, but home prices still surged during this time. It's simple economics; there aren't enough homes to fulfill the demand of active buyers and new residents entering our province. The Provincial and Federal governments can implement laws to slow the market for short periods, but until we can build enough homes for this demand, we will always end up right where we started! For more details or for any questions, hit me up! I'm always here to help! 📩📲📞 ________________________ #realestate #buyers #sellers #taxes #DogsOfInstagram #Dogs #Vancouver #Vancity #YVR #Vancity4Sale

Market Update - January 2023
📈📈
Coming out of the holiday season, January remained quiet as sellers and buyers were awaiting the upcoming Spring market. January sales did fall about 55% vs last year and compared to December 2022, sales were down about 21% bringing the month`s sales 42.9% below the 10 year average.
🏙️🏡
Though sales were down again, new home listings were also down by 20.9% compared to January last year, but rose about 173% vs last month. Although a large increase vs December, there is still a lack of inventory, which has already played a big role as we are starting to see multiple offers on homes outside the city.

The condo market saw sales fall in all areas in Greater Vancouver. Benchmark pricing went down by 1.1% from January 2022 and pretty much held, down only 1% versus last month. Over the past year, condo sales were down 56.6% vs January 2022.

Benchmark pricing for townhomes and 1/2 and actually increased by 0.8% over last month and had a 3% decrease over January 2022. Sales for these property types also decreased over 55.2% vs last year.

Detached homes also fell about 9% in benchmark pricing from January 2022 as sales also decreased over 52.6% during that time period. Over last month, benchmark pricing was down only 1.2%, as homes are starting to flatten as inflation starts to recede.
💸💸
February activity has seen a huge jump, especially outside Vancouver where larger corrections occurred. Mortgage rates just increased, but will now stabilize so we should see an influx of buyers jumping back into purchase mode. The latest rate hike was .25% which will again affect consumers` buying power, but the market activity has spiked and we anticipate it will continue to strengthen! With the new immigration policy implemented for the next 2 years welcoming more permanent residents to Canada, this demand will continue to increase so new inventory is needed ASAP to fulfill the demand!
📈📈
Message me to chat about your options or go to www.vancity4sale.com to search for homes!
📲📩

____________________

#condos #houses #vancouverskyline #downtown #downtownvancouver #vancityskyline #realestate #luxury #vancouver #vancity4sale

Open
Market Update - January 2023 📈📈 Coming out of the holiday season, January remained quiet as sellers and buyers were awaiting the upcoming Spring market. January sales did fall about 55% vs last year and compared to December 2022, sales were down about 21% bringing the month's sales 42.9% below the 10 year average. 🏙️🏡 Though sales were down again, new home listings were also down by 20.9% compared to January last year, but rose about 173% vs last month. Although a large increase vs December, there is still a lack of inventory, which has already played a big role as we are starting to see multiple offers on homes outside the city. The condo market saw sales fall in all areas in Greater Vancouver. Benchmark pricing went down by 1.1% from January 2022 and pretty much held, down only 1% versus last month. Over the past year, condo sales were down 56.6% vs January 2022. Benchmark pricing for townhomes and 1/2 and actually increased by 0.8% over last month and had a 3% decrease over January 2022. Sales for these property types also decreased over 55.2% vs last year. Detached homes also fell about 9% in benchmark pricing from January 2022 as sales also decreased over 52.6% during that time period. Over last month, benchmark pricing was down only 1.2%, as homes are starting to flatten as inflation starts to recede. 💸💸 February activity has seen a huge jump, especially outside Vancouver where larger corrections occurred. Mortgage rates just increased, but will now stabilize so we should see an influx of buyers jumping back into purchase mode. The latest rate hike was .25% which will again affect consumers' buying power, but the market activity has spiked and we anticipate it will continue to strengthen! With the new immigration policy implemented for the next 2 years welcoming more permanent residents to Canada, this demand will continue to increase so new inventory is needed ASAP to fulfill the demand! 📈📈 Message me to chat about your options or go to www.vancity4sale.com to search for homes! 📲📩 ____________________ #condos #houses #vancouverskyline #downtown #downtownvancouver #vancityskyline #realestate #luxury #vancouver #vancity4sale

Federal Foreign Buyers Ban is in Effect

For a period of two years starting January 1, 2023, non-Canadians are banned from purchasing homes in Canada under the definition of “residential property” indicated in the legislation and associated regulations that the federal government published on December 21, 2022.

How does the Foreign Buyers Ban Impact REALTORS®?

REALTORS®, along with lawyers and notaries, have an obligation to inform their clients. The legislation does not rely on REALTORS® to enforce the prohibition. However, REALTORS® who knowingly assist a non-Canadian in contravening the prohibition can be found guilty of an offence and liable on summary conviction to a fine of up to $10,000.
Importantly, REALTORS® do not have any information collection, processing or reporting requirements. REALTORS® should still engage in due diligence as a measure of risk mitigation. To support REALTORS® with their due diligence, the Canadian Real Estate Association (CREA) has developed a certificate: Certification and Consent of Purchaser.

The certificate should be completed before assisting or advising a potential purchaser and it should be used in combination with other due diligence practices. Such practices may include reviewing and keeping a record of the purchaser’s valid and current identification (such as a passport) to determine the purchaser’s citizenship, residency or exempt status.

The key difference between the completion of this certificate and the Know Your Client FINTRAC Regime’s requirement to ID your client at the time of transaction is that with the Foreign Buyers Ban, REALTORS® should ID clients before assisting or advising them on the purchase of a property.

Exemptions

Exceptions exist for international students, temporary residents, specifically exempted foreign nationals and refugee claimants, subject to varying conditions, such as tax filing and residency obligations.

Posted by British Columbia Real Estate Association

For more info, hit me up!

__________________________

#realestate #Buyers #dogs #DogsOfInstagram #VancityDogs #ForeignBuyerBan #Vancouver #YVR #Vancity #Vancity4Sale

Open
Federal Foreign Buyers Ban is in Effect For a period of two years starting January 1, 2023, non-Canadians are banned from purchasing homes in Canada under the definition of “residential property” indicated in the legislation and associated regulations that the federal government published on December 21, 2022. How does the Foreign Buyers Ban Impact REALTORS®? REALTORS®, along with lawyers and notaries, have an obligation to inform their clients. The legislation does not rely on REALTORS® to enforce the prohibition. However, REALTORS® who knowingly assist a non-Canadian in contravening the prohibition can be found guilty of an offence and liable on summary conviction to a fine of up to $10,000. Importantly, REALTORS® do not have any information collection, processing or reporting requirements. REALTORS® should still engage in due diligence as a measure of risk mitigation. To support REALTORS® with their due diligence, the Canadian Real Estate Association (CREA) has developed a certificate: Certification and Consent of Purchaser. The certificate should be completed before assisting or advising a potential purchaser and it should be used in combination with other due diligence practices. Such practices may include reviewing and keeping a record of the purchaser’s valid and current identification (such as a passport) to determine the purchaser’s citizenship, residency or exempt status. The key difference between the completion of this certificate and the Know Your Client FINTRAC Regime’s requirement to ID your client at the time of transaction is that with the Foreign Buyers Ban, REALTORS® should ID clients before assisting or advising them on the purchase of a property. Exemptions Exceptions exist for international students, temporary residents, specifically exempted foreign nationals and refugee claimants, subject to varying conditions, such as tax filing and residency obligations. Posted by British Columbia Real Estate Association For more info, hit me up! __________________________ #realestate #Buyers #dogs #DogsOfInstagram #VancityDogs #ForeignBuyerBan #Vancouver #YVR #Vancity #Vancity4Sale

Market Update - December 2022
📈📈
Traditionally a slower time of year, December remained quiet for the holidays and more sellers are deciding to wait it out as December sales fell about 52% vs last year. Compared to November 2022, sales were down about 20% bringing the month`s sales 37.7% below the 10 year average.
🏙️🏡
Though sales were down, new home listings were down as well by 38% compared to December last year and fell about 60% vs last month. The lack of inventory will play a big role in the upcoming months if things remain the same.
🌆🏠
The condo market saw sales fall in all areas in Greater Vancouver. Benchmark pricing is still up 1.7% over December 2021 and pretty much held, down only .9% versus last month. Over the past year, condo sales were down 52% vs December 2021.

Benchmark pricing for townhomes and 1/2 duplexes decreased by 1.5% over last month and a .2% decrease over December 2021. Sales for these property types also decreased over 52% vs last year.

Detached homes also fell about 5% in benchmark pricing from December 2021 as sales also decreased over 53.3% during that time period. Over last month, benchmark pricing was down only 1.8%, as homes are starting to flatten as inflation starts to recede.
💸💸
January activity has seen good momentum, especially in larger homes. Mortgage rates just increased again in late January 2023, so we should see an influx of buyers frantically speeding up their searches to get in. The latest rate hike was .25% which will again affect consumers` buying power, but it seems we are at the end of increases. If this is the case, we could see market activity spike! With the new immigration policy implemented for the next 2 years welcoming more permanent residents to Canada, this demand should prevent certain areas avoiding larger corrections as rates flatten and interest begins to ramp up.
📈📈
Message me to chat about your options or go to www.vancity4sale.com to search for homes!
📲📩

____________________

#condos #houses #vancouverskyline #downtown #downtownvancouver #vancityskyline #realestate #luxury #vancouver #vancity4sale

Open
Market Update - December 2022 📈📈 Traditionally a slower time of year, December remained quiet for the holidays and more sellers are deciding to wait it out as December sales fell about 52% vs last year. Compared to November 2022, sales were down about 20% bringing the month's sales 37.7% below the 10 year average. 🏙️🏡 Though sales were down, new home listings were down as well by 38% compared to December last year and fell about 60% vs last month. The lack of inventory will play a big role in the upcoming months if things remain the same. 🌆🏠 The condo market saw sales fall in all areas in Greater Vancouver. Benchmark pricing is still up 1.7% over December 2021 and pretty much held, down only .9% versus last month. Over the past year, condo sales were down 52% vs December 2021. Benchmark pricing for townhomes and 1/2 duplexes decreased by 1.5% over last month and a .2% decrease over December 2021. Sales for these property types also decreased over 52% vs last year. Detached homes also fell about 5% in benchmark pricing from December 2021 as sales also decreased over 53.3% during that time period. Over last month, benchmark pricing was down only 1.8%, as homes are starting to flatten as inflation starts to recede. 💸💸 January activity has seen good momentum, especially in larger homes. Mortgage rates just increased again in late January 2023, so we should see an influx of buyers frantically speeding up their searches to get in. The latest rate hike was .25% which will again affect consumers' buying power, but it seems we are at the end of increases. If this is the case, we could see market activity spike! With the new immigration policy implemented for the next 2 years welcoming more permanent residents to Canada, this demand should prevent certain areas avoiding larger corrections as rates flatten and interest begins to ramp up. 📈📈 Message me to chat about your options or go to www.vancity4sale.com to search for homes! 📲📩 ____________________ #condos #houses #vancouverskyline #downtown #downtownvancouver #vancityskyline #realestate #luxury #vancouver #vancity4sale

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