What is the difference between completion day, possession day and adjustment day in BC?
This answer covers the law of British Columbia.
Completion day, possession day and adjustment day are three separate dates your contract can set, and they may fall on the same day or on different days. Completion day is when the sale is finalized: your money is paid and the transfer of title goes forward. Possession day is when you can take over the home and receive the keys. Adjustment day is the date the buyer and seller split ongoing costs such as property taxes, utilities and strata fees, so each of you pays for the time you own the home.
On the money side, the property transfer tax is a closing cost that is normally paid through the conveyancer on completion, and the buyer files a return with the transfer at the Land Title Office. The buyer receiving title is the one who must pay the tax and file the return. A buyer who claims the newly built home exemption must move in within 92 days of registration.
Exactly which day does what, and who pays which adjustment, depends on the wording of your contract. Ask your lawyer or notary to confirm each date and the figures on your statement of adjustments.
Key takeaways
- Completion day is when the sale closes and the money and transfer documents are dealt with, possession day is when you get the keys, and adjustment day is the cut-off for sharing costs.
- The three dates can fall on the same day or on different days, so read the exact dates and wording in your contract.
- Property transfer tax is normally paid through the conveyancer on completion, and the buyer files the return with the transfer at the Land Title Office.
- If you claim the newly built home exemption, you must move in within 92 days of registration.