BC real estate, in plain English

Minimum down payment

In Canada the minimum down payment is 5% of the first $500,000 of the price and 10% of the portion from $500,000 to $1.5 million; homes at $1.5 million or more need at least 20% down.

Mortgage default insurance

Mortgage default insurance protects the lender, not you, and is required when your down payment is less than 20% of the purchase price.

Mortgage stress test

The mortgage stress test requires you to qualify at the higher of 5.25% or your contract rate plus two percentage points, even though you'll pay the contract rate.

Home inspection

A home inspection is a licensed inspector's visual review of a home's structure and systems, usually done while an offer is still subject to conditions.

First-Time Home Buyers' exemption

BC's First-Time Home Buyers' Program exempts up to $8,000 of property transfer tax on a home with a fair market value of $835,000 or less, phasing out to zero at $860,000.

Leasehold vs. freehold

Freehold means you own the land and building outright; leasehold means you own the right to use the property for the remaining term of a long-term lease, after which it returns to the landowner.

Contract of Purchase and Sale

The Contract of Purchase and Sale is the standard BC form that becomes the binding agreement between buyer and seller once both sign it.

Subjects and subject removal

Subjects are conditions in a BC offer, like financing or inspection, that must be satisfied or waived by a set date; once the buyer removes them in writing, the sale is firm.

Deposit

The deposit is the buyer's good-faith money, held in trust by a brokerage, that counts toward the purchase price at completion.

Home Buyer Rescission Period

BC's Home Buyer Rescission Period lets a buyer cancel an accepted offer on most residential properties within three business days, by paying the seller 0.25% of the purchase price.

Completion, possession and adjustment dates

Completion is the day title transfers and the money changes hands, possession is when the buyer gets the keys, and the adjustment date is when costs like property tax and strata fees switch to the buyer.

Notary public (conveyancing)

In BC a notary public can handle the legal side of a home purchase or sale, such as registering the transfer and mortgage, as well as a lawyer can.

Title search

A title search is a check of the Land Title Office record that shows who owns a property and any mortgages, liens, easements or covenants registered against it.

Multiple offers

A multiple-offer situation is when a seller receives more than one offer on the same home and considers them together, usually at a set time.

Presale

A presale is a contract to buy a home in a development before it's built, usually with deposits paid in stages and completion years later.

Assignment

An assignment is the sale of a presale contract to a new buyer before the home is completed; the new buyer takes over the original purchaser's rights and obligations.

Strata

Strata is BC's form of shared ownership: you own your unit outright and share ownership of the common property, like the roof, halls and grounds, with the other owners.

Form B (Information Certificate)

A Form B is the strata corporation's official information certificate for a unit, showing its strata fees, any amounts owing, special levies, the reserve fund balance and pending bylaw changes.

Depreciation report

A depreciation report is an engineer's inventory of a strata building's common components, like the roof, windows and elevators, with a long-term forecast of when each needs repair or replacement and what it will cost.

Contingency reserve fund (CRF)

The contingency reserve fund is a strata corporation's savings account for repairs and replacements that don't happen every year.

Special levy

A special levy is a one-time charge the strata corporation votes to collect from owners, usually for a major repair the reserve fund can't cover.

Strata minutes

Strata minutes are the written record of council and owners' meetings, and the best early warning of leaks, disputes, repairs and levies being planned.

Strata bylaws (rentals, pets and age)

Strata bylaws are a building's own rules on things like pets, noise, renovations and move-ins; since November 2022 BC stratas can no longer restrict rentals, and age restrictions are limited to 55-plus.

Property transfer tax

BC's property transfer tax is a one-time tax paid by the buyer at completion: 1% of the first $200,000, 2% up to $2 million, 3% up to $3 million, and 5% on residential value above $3 million.

Newly built home exemption

BC's newly built home exemption removes property transfer tax on a new home that will be the buyer's principal residence, with a full exemption up to $1.1 million and a partial one up to $1.15 million.

Additional property transfer tax (foreign buyers)

BC charges foreign nationals and foreign entities an additional 20% property transfer tax on residential property in specified areas, including Metro Vancouver.

Speculation and vacancy tax

BC's speculation and vacancy tax is an annual tax on residential property in designated areas, including North and West Vancouver, that's left empty or owned by people who don't pay most of their income tax in Canada.

Empty Homes Tax (City of Vancouver)

Vancouver's Empty Homes Tax is a City of Vancouver tax on homes left unoccupied for more than six months of the year, separate from the provincial speculation and vacancy tax.

Home flipping tax

BC's home flipping tax, in effect since January 1, 2025, taxes the profit on a home sold within two years of buying it, at 20% in the first year and declining to zero by day 730.

BC Assessment value

Your BC Assessment value is the province's estimate of a property's market value as of July 1 of the previous year, used to calculate property taxes, not the price it would sell for today.

Home owner grant

BC's home owner grant reduces the property tax on a principal residence, and it has to be claimed each year.

Small-scale multi-unit housing (SSMUH)

BC's small-scale multi-unit housing rules require most municipalities to allow three to four homes on many lots once zoned only for single-family houses, and up to six near frequent transit.

Ban on non-Canadian buyers

Canada's Prohibition on the Purchase of Residential Property by Non-Canadians Act stops most people who aren't Canadian citizens or permanent residents from buying homes in and around Canadian cities until January 1, 2027.

Land value vs. improvement value

BC Assessment splits every property's assessed value into land value (the lot) and improvement value (the buildings on it).

Zoning

Zoning is a municipality's set of rules for what can be built on a lot and how it can be used: the number of units, height, size, setbacks and uses allowed.

Coach house (laneway home)

A coach house is a small, separate home built behind the main house on the same lot, often facing a lane, that can be rented out or used for family.

Secondary suite

A secondary suite is a self-contained rental unit inside a house, usually in the basement, with its own kitchen, bathroom and entrance.

Sold prices in BC

In BC, detailed sold prices come from the MLS® system through a realtor or a registered VOW site, while BC Assessment shows a property's own sales history and assessed value.

Comparative market analysis (CMA)

A comparative market analysis is a realtor's estimate of what your home would likely sell for, based on recent comparable sales, current competition and your home's own features.

Listing agreement

A listing agreement is the contract between a seller and a brokerage that sets the list price, the listing term, the commission and how the property will be marketed.

Property Disclosure Statement (PDS)

A Property Disclosure Statement is a seller's written answers about a home's known condition, such as leaks, renovations, permits and oil tanks.

Dual agency

Dual agency is one realtor representing both the buyer and the seller in the same sale, and it has been largely prohibited in BC since June 2018.

Disclosure of Representation in Trading Services

The Disclosure of Representation in Trading Services is the BCFSA form a realtor must give you before working with you, explaining whether they'll represent you and what duties they owe.

Benchmark price

The benchmark price is the MLS® Home Price Index estimate of what a typical home in an area sells for, which makes it steadier than an average or median price.

Sales-to-active-listings ratio

The sales-to-active-listings ratio compares a month's sales with the homes for sale; in Greater Vancouver, under 12% is generally a buyer's market, 12–20% balanced, and over 20% a seller's market.

Days on market

Days on market is how long a home has been listed for sale; well above the area's typical figure usually signals it's priced above what buyers will pay.