Home Buyers Cost Guide: Buying Real Estate in BC

HOME INSPECTION FEE: We always recommend that you get a home inspection by a certified home inspector. It will cost you anywhere from $450 to $1000 depending on type and size of the dwelling.

PROPERTY TRANSFER TAX – PTT: When a residence is purchased, Property Transfer Tax (PTT) is applied. The tax is calculated at 1% on the first $200,000 and 2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000, 3% for the portion above $2,000,000 up to and including $3,000,000 and 5% on the portion of the fair market value greater than $3,000,000.

LEGAL FEES: Lawyers/Notary fees for closing the sale vary according to the complexity of the deal. They may range from $1400-$1600. Disbursements to Land Titles Office are approximately $300 in addition. Your lawyer/notary will arrange the payment & transfer of funds on completion of the property sale.

GST: On a newly constructed home 5% GST applies. NOTE: GST may also apply on resale land.

REALTOR FEES:  Realtor fees for a Buyer’s agent are typically not paid by the Buyer. When a Seller lists their property for sale, the Seller pays a fee to the Sellers Agent. The Seller’s agent may provide a portion of this fee to the Buyer’s Agent when their client purchases the property. There are exceptions such as off market properties or private sale properties. In this case the Buyer’s agent will approach the Seller to negotiate a fee agreement.

MOVING COSTS:  Moving costs vary. Be sure to get a quote from your local mover before you make a move so you can budget accordingly.

DEPOSIT: When you have made an offer on a property and the subjects (inspection, financing, etc)  are removed your offer becomes firm and at that time a deposit will typically be due. A typical deposit is 5% of the purchase price and will make up part of the down payment amount that you have discussed with your mortgage broker. If you have any questions about deposits please let us know. 

Jeffrey Sefton
South Okanagan Home Team
okanaganrealestatesearch.com
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