Steps to Buy a House in British Columbia From Offer to Keys

Buying a home in British Columbia involves several stages, and each one has its own deadlines and decisions. If it is your first purchase, it helps to see the whole path in order so that nothing surprises you late in the process.

This article walks through the usual steps from pre-approval to getting the keys, and points out the legal and tax items that catch buyers off guard. It is general information, not advice on your own purchase.

This article covers the law of British Columbia.

Step 1: Get ready before you make an offer

Start with a mortgage pre-approval so you know your budget, and decide what you need in a home. Then set aside money for more than the down payment. Closing costs are real, and property transfer tax is one of the largest.

• A mortgage pre-approval from a lender.
• Savings for the down payment and the deposit.
• Money for closing costs, including property transfer tax.
• A conveyancer (a lawyer or notary) you can contact once an offer is accepted.

Check early whether you might qualify for a tax exemption. For properties registered on or after April 1, 2024, the first-time home buyers' program gives a full property transfer tax exemption if the fair market value is $835,000 or less, and a partial exemption above $835,000 and below $860,000, as long as the lot is 0.5 hectares (1.24 acres) or smaller. The buyer must be a Canadian citizen or permanent resident, must have lived in BC for at least a year immediately before registration (or filed at least 2 income tax returns as a BC resident in the last 6 taxation years), must never have owned a principal residence anywhere in the world or received a first-time buyers' exemption or refund, and must use the home as their principal residence.

If you are not a Canadian, a federal law restricts non-Canadians from buying residential property in urban centres. It was extended from January 1, 2025 to January 1, 2027, with a $10,000 fine for contraventions.

Step 2: Make the offer and pay the deposit

Most buyers make an offer through a real estate licensee. A contract about land is not enforceable unless there is a signed writing showing the contract was made and giving a reasonable indication of its subject matter, with limited alternatives such as part performance or reasonable reliance. In practice, that means your offer is written and signed.

A buyer usually makes a deposit with the offer or after the offer is accepted, and it is usually held in the licensee's brokerage trust account, with the brokerage holding it as stakeholder. Some offers provide for no deposit until after subjects are removed, and a seller can counter-offer to increase the deposit or require it before subject removal. If there are competing offers, BCFSA recommends that only one offer be countered at a time.

Step 3: Work through the subject conditions

Subject conditions are the conditions that must be satisfied before the deal becomes firm. Common ones are financing approval, a home inspection and, for a condo or townhouse, a review of the strata documents. Each condition has a date, so keep a calendar.

For 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.

Removing subjects usually means you accept the conditions are met, so be sure you are satisfied before you sign. Read what the contract says about missed dates, and ask for advice if you are unsure.

Legal work, tax and closing costs

Once subjects are removed, your lawyer or notary prepares the transfer and mortgage documents and handles the money. The buyer files a property transfer tax return, usually done by their legal professional with the transfer at the Land Title Office, and because the tax is a closing cost it is normally paid through the conveyancer on completion. The registrar may refuse an application if there are reasonable grounds to believe the tax is unpaid or the return is incomplete or unfiled.

For a newly built home registered on or after April 1, 2024, a full exemption applies at $1,100,000 or less, phasing out until it is eliminated at $1,150,000, as long as the buyer is a citizen or permanent resident, the home is their principal residence, and the lot is 0.5 hectares or less. To keep it, you must move in within 92 days of registration and live there as your principal residence for the rest of the first year.

A federal first-time home buyers' GST/HST rebate of up to $50,000 may be available on new or substantially renovated homes under agreements entered on or after March 20, 2025. It does not cover resale homes.

Completion, possession and what to do next

Completion and possession are two key points at the end of a purchase, and exactly what each means for you depends on the wording of your own contract. Check the dates in the contract against your moving plans, and confirm anything unclear with a lawyer.

• Confirm the completion, possession and adjustment dates in your contract.
• Arrange home insurance and utilities before possession.
• Meet with your conveyancer and sign documents ahead of time.
• Have funds ready for the balance and closing costs.
• Do a final walk-through before completion.
• Ask a lawyer if anything in the contract or tax treatment is unclear.

Frequently asked questions