Completion, Possession and Adjustment Dates in British Columbia

When you read a contract of purchase and sale in British Columbia, you will usually find several dates close together. It is easy to assume they all mean the same day, and sometimes they fall on the same day. They do different jobs, though, and mixing them up can leave you without funds, without keys, or paying costs you did not expect.

This article explains in plain words what each date generally means, how they fit together, and what usually happens around closing. Your own contract controls the exact wording, so treat this as a map to help you read it, not a replacement for it.

This article covers the law of British Columbia.

Three dates, three different jobs

In general terms, the completion date is the day the sale is finished on paper: your money is paid, the transfer is registered, and ownership passes to you. The possession date is the day you are entitled to take over the home, which is when you get the keys and can move in. The adjustment date is the day from which the ongoing costs of the property, such as property taxes and utilities, are divided between you and the seller.

Many contracts set all three on the same day, but they do not have to be. A seller may need a few extra days to move out, or a buyer may want to take possession before the final paperwork is registered. Whatever the arrangement, the dates should be written into the contract, so check each one rather than assuming.

What happens on completion

The person receiving title, called the transferee, must pay property transfer tax and file a return when applying to register the transfer at a land title office. In practice this is usually handled by your legal professional, a lawyer or notary, who files the return with the transfer. Because the tax is a closing cost, it is normally paid through that conveyancer on completion.

This matters because the registrar may refuse an application if there are reasonable grounds to believe the tax is unpaid or the return is incomplete or unfiled. A missing or wrong return can therefore hold up registration. Notaries who are enrolled and in good standing may draw property instruments meant for registration, which includes transfers and mortgages. A buyer acting alone on their own behalf is allowed, although the registered documents are normally prepared and filed by a lawyer or notary.

Costs that land on completion

The general property transfer tax rates are 1% on the portion up to $200,000, 2% on the portion above $200,000 up to $2,000,000, and 3% on the portion above $2,000,000. A further 2% applies to the residential value above $3,000,000. Exemptions and extra taxes can change the result, so these are worth checking before the closing date.

• First-time buyers: for registrations on or after April 1, 2024, a full exemption applies if fair market value is $835,000 or less, with a partial exemption above that and below $860,000.
• Newly built homes: a full exemption applies at $1,100,000 or less, phasing out until it is eliminated at $1,150,000, and you must move in within 92 days of registration.
• Foreign nationals, foreign corporations and taxable trustees pay an extra 20% on residential property in certain regional districts.

If only some co-buyers qualify as first-time buyers, only their ownership share is exempt. Eligibility rules also apply, including citizenship or permanent residence and using the home as your principal residence.

Strata purchases and the dates

If you are buying a strata lot, the strata corporation must give an Information Certificate within one week of a request by an owner, a purchaser, or a person they authorize. Buyers use it to review the strata's finances and rules, and it is commonly made a subject condition. Ask for it early, because your conditions need to be dealt with well before completion.

What to do next

• Find the completion, possession and adjustment dates in your contract and write them on one page.
• Confirm with your lender and your lawyer or notary that the completion date works for everyone.
• Ask which costs are adjusted and what the adjustment date means for the first day.
• Check whether you qualify for any property transfer tax exemption, and whether any extra tax applies.
• Arrange for the tax and funds to go through your conveyancer before completion.
• Ask a lawyer to review the dates if they differ from each other or seem unclear.

Frequently asked questions