There are many different fees and disbursements that go along with purchasing a new home in British Columbia. Our calculator makes it easy to find out how much your dream home is going to cost. Simply input the figures for your desired property and the calculator will give you an estimate.
In the last six months, merely finding a home in Kelowna has become very difficult as more and more Buyers enter the area for jobs, lifestyle and retirement… and once you have found your dream home… what do you do next?
Due your “Due Diligence”; call your real estate lawyer to review you title and work through the subject conditions on the property, don’t be in a rush to move into a home your don’t know everything about;
Finalize your Lending or Financing Commitment with your banker or brokers
Get a Home Inspection (remember the standard contract contains no assurances about the quality of any home – buyer beware)
The end of June is “high season” for residential real estate closing. As the school year comes to the close and the weather turns warmer, people want to get the “business of moving” done prior to enjoying summer holidays.
There are a couple of unique considerations for Kelowna Real Estate at this time of year, all of which revolve around the July 2 Municipal Property Tax payment deadline.
For closings before June – the municipal property tax payment is the responsibility of the new Buyer and the Seller receives a debit at closing based on the estimated bill to be paid (or the assessment if available).
For closing after early July – the municipal property tax payment is the responsibility of the Seller (prior to vacating) and Buyer will receive a debit at closing for the amount already paid.
For closings in June and early July, a couple of key points for Sellers:
When you pay your property taxes (at a bank or at the city), ensure that you keep your receipt.
For your principal residence, make sure that you claim your Home Owners Grant on your principal residence when you pay your taxes (more info on eligibility here)
Depending on the municipality and the timing of the payment, Sellers closing at the end of June may be legally required to holdback an amount of closing to ensure that property taxes have been paid (ensure you have budgeted for this extra temporary cost).
Your Kelowna Real Estate Lawyer will make adjustments such that the Buyer and Seller each “pay” for those expenses which accrue to the property during that time of the year (a per diem adjustment) that each party owns the property being transferred.
The Home Owners Grant that is actually claimed is the amount adjusted for. This can result in some “inequity” in some cases. For example where the Buyer is a Senior buys a property from an Investor and the Seller has already paid the property tax the difference in Home Owner Grant amounts means the Senior may pay an extra $500 in property tax.
These situations may not be entirely avoided but in some cases they can be minimized by talking to your Kelowna Real Estate Lawyerearly. For instance (in the example above), we would try to have the Senior Buyer pay the taxes and claim the grant (and debit the Investor Seller) if this was legally possible prior to the municipal tax deadline.
For more information on property taxes, see the local municipal property tax information pages here:
In the context of residential real estate, 90% of the time the deals of fairly straightforward. The difficulty here is identifying the 10% of homes or deals that have issues and importantly what those issues are.
Prior to subject removal Home Buyers are in the best position to gather information and make decisions about their home. This often involves: bankers, home inspectors, city clerks, and yes, LAWYERS.
In short: Calling a lawyer BEFORE subject removal provides the BEST value for clients.
Buyers are always concerned with fees (see my fee post here), so often they are hesitant to contact a lawyer before they purchase a home and Lawyers have earned an unfortunate reputation of “clocking” the very first phone call with a client.
There are lots of law firms in town… so whats different about Pihl Law Corporation?
Buyers who are referred by our Referring Realtors get connected directly with Peter, usually immediately if he is available;
If Peter is meeting with clients, all Referred Buyers have their email or telephone call returned within a few hours;
Referred Buyers are never billed for that initial phone call (yes its FREE, the timer is off), even if they don’t proceed to purchase that home.
The following key points are discussed in detail:
Review of any apparent legal issues based on the home, the neighborhood and our local knowledge;
The binding nature of the contract after subject removal;