If you have been catching the global matches at BC Place or watching the drama unfold with local fans, you have definitely seen it happen: a striker puts a spectacular, stadium-shaking ball into the back of the net, only for the linesman to raise the flag. The play goes to a Video Assistant Referee (VAR) review, and by a matter of inches, the goal is wiped off the board.

OFFSIDE.

In the high-stakes world of British Columbia real estate, first-time homebuyers face a remarkably similar trap. You find a place, get your mortgage approved, and prepare to score your dream home—only to realize a tiny rule violation has completely wiped out your First-Time Home Buyers' Property Transfer Tax (PTT) exemption, sticking you with an unexpected five-figure penalty right at the closing line.
To keep your hard-earned cash safe, you need to understand the legal "lines" of the game. Let's break down the rules so your purchase stays completely onside.

The Exemption Play: A Potential $8,000 Savings
Normally, when you buy real estate in BC, the provincial government charges a Property Transfer Tax. The standard tax rate is calculated using a tiered system:

• 1% on the first $200,000 of the fair market value.
• 2% on the portion of the fair market value up to $2,000,000.

For example, on a regular purchase of an $800,000 condo, PTT payable is $14,000
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However, BC offers a massive financial assist to beginners. If you qualify, the First-Time Home Buyers' Program can grant you an exemption worth up to $8,000. But just like in soccer, if you cross the lines set by the Ministry of Finance, the whistle blows and the tax is back on your closing statement.
Here are the three ways buyers accidentally wander into an offside position.

1. The Value Line: The $835,000 Threshold
In soccer, the offside line is determined by the last defender. In BC real estate, the line is determined by the purchase price (or fair market value) of the home:

• The Safe Zone: If the fair market value of your home is $835,000$ or less, you qualify for a maximum tax savings of up to $8,000$.
• The Squeeze Play: If your home is valued between $835,000$ and $860,000, the Province applies a "sliding scale." Your tax break starts trickling away linearly with every dollar you go over.
• Completely Offside: The absolute limit is $860,000. If your purchase price is even a single dollar over, say $860,001, you are entirely offside. The exemption drops to exactly $0, and you instantly owe the full tax amount of $15,200 at closing.

2. The Roster Rule: Have you really never played?
To qualify for the first-time buyer exemption, you must have an unblemished record.

• You must be a Canadian citizen or permanent resident.
• You must have lived in BC for 12 consecutive months before buying (or filed at least two tax returns here in the last six years).
• The Primary Residence Trap: You must have never owned a registered interest in a home used as a principal residence ANYWHERE ELSE IN THE WORLD at any time.
  
  

The Investment Property Loophole: Are You Still Onside?
What if you inherited a 10% share of a family condo abroad ten years ago? Are you automatically disqualified? This is where the exact wording of the law saves the play. The BC rule specifically penalizes you if you previously owned a stake in a property that was used as your principal residence (meaning a home where you actually resided and laid your head at night). If that foreign property or inherited condo slice was strictly used as a rental investment property, a vacant plot of land, or a commercial space, and you never occupied it as your main home, you are still legally considered a first-time home buyer in BC.

But be warned. The Ministry of Finance runs its own strict VAR checks. If they audit your claim, the burden of proof is entirely on you. You must be ready to show a clear paper trail—like formal lease agreements, rental income statements, or tax filings—proving you never actually lived there.

3. The Post-Match Tactic: The 92-Day Occupancy Rule
You can’t just score the goal and walk off the pitch; you have to play out the rest of the season. Once your notary registers the property in your name, the province monitors what you do next.

• To keep your tax savings, you must move into the home within 92 days of the closing date.
• You must also continue to live there as your principal residence for a full, consecutive year.
• If you decide to rent the property out to a tenant or move away on day 90, the government’s "VAR check" will catch it, and you’ll be forced to pay back the exempted tax retroactively.

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Let us act as the Linesman.  Contact us to ensure your purchase stays safely onside.

In British Columbia, a Notary Public plays an important role in helping individuals and families handle key legal matters—especially those that require reliability, clarity, and proper documentation. While notaries are not lawyers, they are highly trained legal professionals with a defined scope of practice focused on non-contentious matters.

What Can a BC Notary Do?
A BC Notary Public is authorized through the Society of Notaries Public of British Columbia to provide a range of legal services, including:

• Real Estate Transactions: Preparing and registering documents for purchases, sales, mortgages, and refinances through the Land Title and Survey Authority of British Columbia.
  
• Wills & Estate Planning: Drafting simple wills, powers of attorney, and representation agreements.
  
• Notarizations: Certifying true copies, witnessing signatures, and administering oaths and affidavits.
• Authentication & Certification: Assisting with documents intended for use outside of Canada.

What Is Outside a Notary’s Scope?
BC Notaries generally do not handle contentious legal matters, such as disputes, litigation, or complex family law issues. In those situations, clients are typically referred to a lawyer.

Why This Matters to Clients
The scope of a BC Notary’s practice is designed to provide accessible and efficient legal services for everyday needs—particularly in real estate and estate planning. For many transactions, working with a Notary can be a cost-effective and streamlined option.

Let us handle the paperwork for your next big milestone.  Click here to reach out today to see how we can help.

Buying your first home can feel overwhelming, especially with rising real estate prices in BC. The First Home Savings Account (FHSA) is a new tool designed to help first-time homebuyers save more efficiently while enjoying tax benefits.

What is the FHSA?
The FHSA is a registered account that combines the benefits of an RRSP and a TFSA. Canadians can contribute up to $8,000 per year (with a lifetime limit of $40,000) toward their first home. Contributions are tax-deductible, and withdrawals for a qualifying home purchase are tax-free.

Who Can Open an FHSA?

• Must be a Canadian resident
• 18 years or older
• First-time homebuyer, meaning you haven’t owned a home in the past four years

Qualifying Withdrawals
To use your FHSA funds tax-free, withdrawals must meet certain criteria:

1. First home purchase: The money must be used to buy or build your first home.
2. Written agreement to buy or build: You must have a purchase or construction agreement.
3. Timing: Funds must be withdrawn in the same calendar year as the home purchase or within a short period around the purchase date.
4. Lifetime limit: You cannot withdraw more than your available FHSA balance.

Non-qualifying withdrawals are taxable, so it’s important to plan carefully.

Why the FHSA is Useful

• Tax Savings: Contributions reduce your taxable income, and qualifying withdrawals are tax-free.
• Flexibility: Unused contribution room carries forward, and FHSA funds can even be transferred to an RRSP or RRIF if unused.
• Combine with Other Programs: Can be used alongside the Home Buyers’ Plan (HBP) for additional savings strategies.

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Check out the official link from the Government of Canada or speak to your bank for more details.

It’s official! The GST Rebate for First-Time Home Buyers has received Royal Assent, and the CRA is now processing claims that could save you up to $50,000! Canada’s new government has eliminated the GST on new homes up to $1 million and reduced it for homes up to $1.5 million for agreements signed between March 20, 2025, and 2031. To get your rebate as fast as possible, simply log into your MyCRA account to apply online; while we are happy to assist with the paperwork, please note that manual applications will take slightly longer to process. 

Check out our link here and the official site from Government of Canada for more information about this program, including how to apply for the rebate.

The Government of British Columbia has announced changes to the Property Transfer Tax (PTT) to improve housing affordability. The changes, effective April 1, 2024, include raising the exemption threshold for first-time homebuyers from $500,000 to $835,000 and increasing the exemption for newly built homes to $1.1 million.  Click here to read more.

Source: www2.gov.bc.ca

The new B.C. housing law, aimed at increasing housing units on single-family lots, does not override existing restrictive covenants on land titles that limit multi-unit construction. Many properties have old covenants without expiry dates, and homeowners affected are encouraged to seek legal advice.  Click here to read more.

Source: Vancouver Sun

British Columbia has been able to develop one of the best land survey and title registration systems in the world.  

British Columbia, including the colonies before the province came into existence, has always maintained a system for recording ownership and interests in private land.   For a short while, the colonies maintained Deeds Registries.  However, a Deeds Registry results in a complicated, unreliable system for recording interests in land.   In order to gain an opinion on ownership of interests in land, an unbroken chain of documentary evidence over long periods of time or possibly from the original granting of the land from the Crown is required.   If any one of those documents was not properly executed, or if all documents in the chain cannot be obtained, then a shadow of doubt is cast upon the claim of ownership.

In many instances, banks and financial institutions require the borrowers to obtain a title insurance.  However, this policy only protects the bank’s interest and insures against financial loss in the event of a defects in title to the property.

In British Columbia, title defects rarely happen.  When a land title is transferred, the new owner can be assured that his/her title is “indefeasible” (meaning the title transfer cannot be defeated, revoked, or made void) under the Torrens system, as long as the owner acquires the interest in good faith and for value consideration.

Joint Tenancy vs. Tenants in Common
Property owned by more than one person must be owned in one of two ways: Joint Tenancy or Tenancy in common.  When a property is owned in a joint tenancy arrangement, the interest of a deceased owner automatically gets transferred to the remaining surviving owner(s), meaning the surviving owner(s) has the right of survivourship.  On the other hand, if the property is in tenants in common, the interest in the property becomes owned by the estate of the deceased and is transferred to beneficiaries by the estate.

Joint Tenancy:

• On the death of one joint tenant, their interest in the land passes to the other joint tenants by the right of survivorship and the process continues until there is but one survivor, who then holds the property as sole.
• Each tenant holds common (or undivided) interest. If one owner dies, the remaining joint tenant(s) automatically inherits the property in equal proportions. This does not form part of the estate on one’s death.
• All joint tenants always own an identical and equal portion – for two tenants, 50% each and for four tenants, 25% each.
• Joint tenancy can avoid probate fees and delays. Shares are automatically passed on without probate court interference which can be a major advantage to Joint Tenancy.  
• All names of the group who are joint tenants will show up on the title of the property evenly.
• It is the most common way for a couple to own real property.
• The mortgage of a joint tenancy property requires the unanimous agreement of all joint tenants.
• A joint tenant in certain cases and geographical areas, can apply to the courts to have the land severed and provide each owner with a separate and distinct piece.
• For joint tenancy, approval for co-owner is not needed to break up a joint tenancy.
• All tenants can occupy and manage the property:
  • Can be problematic if one joint tenant refuses to pay their share of the property expenses.
  • If one pays ALL the expenses, they can ask for reimbursement for necessary costs e.g. Property Tax

Tenants in Common:

• Each tenant holds a percentage of interest in the property. If one of the owners dies, their interest in the property passes to their estate to be passed on according to their will.
• Tenants in common is usually used when tenants own the property in unequal shares, i.e. in different percentages.
• “Agreement between Tenants in Common” may be entered into which could override the rights which tenants would normally have under law.
• The tenants can hold equal or unequal shares: Every tenant owns an undivided share in the property therefore is free to possession of the whole property.
• Holder of tenancy in common desires, either to sell of mortgage their interest in the property, that can be done by them without the consent of other tenants
• Does not carry a right of survivourship: if one tenant dies, their interest does not go to the other tenants, but goes to the estate of the deceased. If there is a will, it’s distributed accordingly. However, if there is no will, there are provincial legislations and the person’s assets (including tenant’s interest of property) would be distributed to relatives according to that legislation.
• If an individual is purchasing properties for investment purposes with people that are not relatives, tenants in common would be appropriate as then their shares will not automatically go to the remaining tenants.

 
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