Our partners at Spagnuolo Real Estate Lawyers has provided some clarity to the recent changes announced for Property Transfer Tax in BC and First Time Home Buyers.  Here is an outline below:

PTT Exemptions: Based on Completion Date or Contract Date? The Completion Date appears to be the only thing that matters. There does not appear to be any exclusion of contracts entered into prior to April 1, 2024 or any other conditions related to the date of the contract. It appears that a property will qualify for the First Time Home Buyers or Newly Built Home Buyers exemption so long as the fair market value of the property does not exceed $835,000 or $1,100,000 effective April 1, 2024.

Flipping Tax: Pre-Sale Contracts. Based on current guidance, a pre-sale purchaser is deemed to acquire the pre-sale as of the date of the pre-sale contract. Accordingly, if a person enters into a pre-sale contract, completes the purchase and sells within two years of the original pre-sale contract, they will be subject to the BC Flipping Tax. The two year window does not get extended by the actual close of the unit at the Land Title Office. More details on this will emerge when legislation is introduced. They would also be hit if they assigned the pre-sale contract within two years of signing the pre-sale.

Here are more details on their website: CLICK HERE FOR THEIR KNOWLEDGE CENTRE

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Our calculators on our App My Mortgage Toolbox have been updated so head over to our page to download the app if you haven’t already.  You will see a calculator that has a comparison of today’s PTT vs the new exemption.  CLICK HERE TO DOWNLOAD OUR APP