Closing Costs

What you want to know is how much it will cost to complete your transaction. This is an important consideration however there is more to think about other than the legal fee component of the
closing costs;

• Legal Costs
• Third-party closing costs (insurance binder, search fees, strata forms, strata fees, courier fees etc)
• Property Taxes (Township Of Langley)
• Property Transfer Tax
• Harmonized Sales Tax

• Adjustment Costs (property taxes, water/sewer utilities, rental suites)
  
  

Legal Costs

Costs vary depending on whether you are buying or selling, and the complexity of each. It is important for you to know and understand what is included in the price and what other additional charges may apply. Please call us for a quote to determine the costs you are likely to incur.

Third Party Closing Costs

Third party closing costs are usually separate from legal costs. Some examples of third party fees are;

• Municipal tax certificates
• Insurance binders
• Strata Plan forms F & B
• Strata move-in and move-out fees
• Survey Certificates or Title Insurance
• Courier fees

A survey certificate is generally required by most mortgage lenders. The survey is used by the lender to ensure the property does not infringe on adjoining properties and that it conforms to municipal zoning by-laws. Each lender has age restriction limitations as to how old the survey can be before a new survey is called for.

If a survey is not available or is too old then title insurance is accepted by most financial institutions as an alternative to a survey certificate. Title insurance costs vary depending upon the home purchase price and amount of mortgage. We can order a new survey or title insurance on your behalf. Please call to determine if a new survey or title insurance is best for you.

Property Taxes (Township Of Langley)

Buyers of property within the Township of Langley need to be aware that if the Seller has been making monthly or interim payments towards their taxes throughout the tax year which results in the property tax account being in a credit position with The Township of Langley, the Township will NOT reimburse the Sellers with the credit.

The credit MUST be assumed by the Buyer and the Seller is credited back by way of the Statement of Adjustments which will lead to extra money that you will need to come up with in order to complete the purchase that you otherwise would not have known about or prepared for.

Property Transfer Tax

Property Transfer Tax is a provincial tax charged by the Province of British Columbia on residential purchases made in British Columbia. The tax is charged as follows;

• First-time homebuyer’s may qualify for a full or partial exemption on the property transfer tax. The purchase price amount along with other criteria such as the following determine first-time buyer qualification;

• Must be a Canadian citizen or permanent resident status
• Must be a first-time homebuyer
• Must have resided in British Columbia for 12 months prior to the purchase
• Must never have owned a principle residence anywhere in the world in the past
• Full exemption for properties priced $425,000 or less (subject to change without notice)
• Partial exemption for properties priced $425,000-$450,000 (subject to change without notice)

Visit our Resources page for more information.

Harmonized Sales Tax (H.S.T.)

The Harmonized Sales Tax (H.S.T.) is charged on all NEW residential properties. It is the first owner of the home that pays the H.S.T. It is important to read your Contract of Purchase and Sale carefully to determine if the agreed purchase price includes H.S.T. or not.

GST / HST New Housing Rebate Program Guide

Closing Adjustments

The “adjustment” date on your Contract of Purchase and Sale makes reference to the date that the various adjustments will be balanced to. The adjustments are pro-rated and adjusted accordingly. Some of those adjustments include the following;

• Municipal property taxes
• Municipal water/sewer
• Strata maintenance and move in or out fees
• Suite Rental and damage/security deposits

Keep in mind that municipal property taxes are generally charged in July for the current calendar year. For example, taxes are charged and collected in July for the current January – December calendar year.