Property transfer tax (PTT) is collected on most land transfers in BC. Paid by the buyer where applicable, PTT is an important cost to factor into the acquisition of real property.

The following updates to the PTT rules were recently announced by the provincial government that will impact those purchasing real estate effective April 1, 2024.

The first time home buyer exemption will be extended to properties with a fair market value of $835,000 or less. Qualifying buyers will be fully exempt from paying PTT on the first $500,000 of the value of a home but will have to pay PTT on the value between $500,000 and $835,000. From the previous application limit of $500,000, this change will extend the benefit to far more buyers than under the previous rules.

The threshold for the newly built home exemption will be extended to new builds with a fair market value of up to $1,100,000. (A partial exemption is also available for properties with a FMV just above the threshold – namely, up to $1,150,000.) This increase from the previous application limit of $750,000 is also a welcome change for those in the market for a new property.

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This article is intended for information purposes only and should not be taken as the provision of legal advice. Grace C. Cleveland is a lawyer with the law firm of Cleveland Doan LLP and can be reached at (604)536-5002 or grace@clevelanddoan.com.