Purchase of a Residential Property
in British Columbia
Purchase of Residential Property
1. Initial Client Interaction
- Opening the File
- At Pax Law Corporation obtain the signed Contract of Purchase and Sale (CPS).
- Verify the buyer’s identity and collect necessary details
- Confirm how they wish to hold title (sole, joint tenancy, etc)
- Determine if the buyer is a first-time homebuyer (for PTT exemption)
- Reviewing the CPS
- Identify key terms, including price, deposit, closing date, and subject clauses
- Ensure financing conditions are met (if applicable)
2. Conducting Due Diligence
- Title Search
- Obtain a State of Title Certificate through LTSA
- Check for mortgages, easements, liens, or other encumbrances
- Reviewing Property Tax and Utility Payments
- Confirm outstanding property tax balances
- Determine any prepaid utilities requiring adjustment
3. Preparing Closing Documents
- Essential Documents
- Statement of Adjustments: Calculates property tax adjustments, deposit credits, and total payable by the buyer
- Form B (Mortgage, if applicable): Required if the buyer is financing the purchase
- Property Transfer Tax (PTT) Return: Filed online through the BC government portal
- GST Certificate (if applicable): Needed for newly built properties
4. Closing the Transaction
- Signing Appointment with the Buyer
- Explain all documents before signing
- Verify the buyer’s ID
- Confirm mortgage instructions if financing is involved
- Payment and Fund Transfers
- Receive mortgage funds and buyer’s balance via trust account
- Ensure funds are sufficient to cover the purchase price and legal fees
- Registering the Transfer
- Submit Form A (Transfer) and Form B (Mortgage) through LTSA
- Confirm registration before releasing funds to the seller
- Reporting to the Client
- Provide a final report with the registered title, mortgage details, and financial adjustments
- Advise on property tax and strata fee responsibilities
Best Practices & Risk Management
- Managing Client Expectations
- Set realistic timelines and communicate delays early
- Provide clear explanations of legal terms
- Ensure transparency in legal fees and disbursements
- Avoiding Liability
- Keep thorough documentation of all communications
- Verify all title and financial information meticulously
- Use proper trust accounting practices
- Troubleshooting Common Issues
- Title Issues: Seek client instructions and liaise with LTSA if discrepancies exist
- Funding Delays: Communicate with the lender and buyer to expedite resolution
- Non-resident Sellers: Ensure compliance with CRA withholding tax requirements
Software and E-Filing Guidance
- LTSA & E-Conveyance
- Use myLTSA for title searches, document filings, and obtaining State of Title Certificates
- Ensure Form A and Form B submissions comply with LTSA requirements
- Property Transfer Tax (PTT) Filing
- File through the BC Government’s eTaxBC system
- Ensure first-time homebuyers’ exemption eligibility is confirme
This manual provides a comprehensive, step-by-step guide to conveyancing for both sale and purchase transactions in British Columbia. Adherence to these procedures will ensure a smooth and legally compliant process for all parties involved.
Book a Consultation Today
Purchasing a residential property in British Columbia is an important step, and having the right legal guidance can make all the difference. Our Real Estate Lawyers in Vancouver will review your documents, handle the title transfer, and make sure your purchase is completed smoothly and securely.
Book a consultation today and let us help you move forward with confidence in your property purchase.