10 Things You Must Do Before Buying a Property in British Columbia

Disclaimer

The following information is provided for general educational purposes only and does not constitute legal advice. This article reflects BC real estate law as of November 2025. Laws, taxes, and regulations change frequently in real estate matters. Real estate transactions in British Columbia can involve complex legal, financial, and tax considerations. You should always consult a qualified BC real estate lawyer before signing any documents or removing conditions in a property purchase.

1. Retain a Real Estate Lawyer Early

Before you even make an offer, it’s essential to retain a lawyer experienced in BC real estate law. Many buyers wait until after they’ve signed the Contract of Purchase and Sale, but by that stage, it’s often too late to correct costly mistakes. A lawyer can review the contract before you sign, ensure your interests are protected, and insert subject clauses related to financing, inspection, title review, and other due diligence items. They can also explain your obligations under provincial and federal law, including Property Transfer Tax and the Speculation and Vacancy Tax.

2. Confirm Your Eligibility and Tax Status

If you’re a non-resident or buying a second property, make sure you understand the various restrictions and taxes that may apply. The Prohibition on the Purchase of Residential Property by Non-Canadians Act restricts certain non-residents from buying residential real estate in designated areas until January 1, 2027. There are limited exceptions for temporary residents with work permits, international students, and refugee claimants meeting specific criteria.

Buyers should also be aware of the Speculation and Vacancy Tax (SVT), which may apply to vacant or secondary properties, and the Property Transfer Tax (PTT), which is typically 1-3% of the purchase price. In some regions, foreign buyers may also face an additional 20% tax. If you’re purchasing a new building or substantially renovated property, GST (5%) may also apply. With the First-Time Home Buyers’ Program, a Canadian citizen or permanent resident buying their first home and occupying it as their principal residence may qualify for a full or partial PTT exemption.

3. Review the Title and All Registered Charges

Your lawyer should conduct a Land Title search through the Land Title and Survey Authority (LTSA). This search confirms that the seller legally owns the property and reveals any charges or encumbrances registered against the title, such as easements, covenants, rights-of-way, liens, or mortgages.

Since November 30, 2020, properties in BC held by corporations, trustees, or partnerships must disclose beneficial ownership information in the Land Owner Transparency Registry (LOTR). Reviewing these documents/Registry is crucial to understanding ownership and potential restrictions on how you can use or develop the property.

4. Conduct Comprehensive Due Diligence

Never skip the inspection. A qualified home inspector (a member of HIABC – Home Inspectors Association BC, or a similar association) can identify structural issues, water damage, and other hidden defects. For older homes, we highly recommend an oil tank scan. For rural or commercial land, an environmental site assessment may be necessary.

If the property is part of a strata, review the Form B Information Certificate, depreciation report, strata bylaws, meeting minutes, and financial statements. These documents reveal the strata corporation’s financial health and any upcoming special assessments. Meanwhile, effective January 3, 2023, most residential real estate purchase contracts in BC include a mandatory 3-business-day cooling-off period. During this time, you can rescind the contract for any reason by paying a fee of 0.25% of the purchase price.

There is an additional 7-day rescission period for strata properties after receiving the Form B Information Certificate, and this rescission typically has no penalty fee if exercised within 7 days. Do not view the cooling-off period as a substitute for proper due diligence. Instead, use it as a safety net while conducting thorough inspections, title searches, and financial reviews during your subject removal period.

5. Secure Financing and Review Your Mortgage Terms

Before removing any financing conditions, ensure you have a written mortgage pre-approval. Carefully review your loan’s interest rate, amortization period, prepayment rights, and penalties. You should also determine how the title will be held if there are multiple purchasers, either as joint tenants or tenants in common, as this affects ownership rights and succession planning. Ensure your deposit is held in trust under the Real Estate Services Act.

6. Review the Property Disclosure Statement (PDS)

The Property Disclosure Statement, if provided, outlines what the seller knows about the property’s condition. Although the PDS is not a warranty, it is a useful disclosure tool. Review it carefully for any mention of water intrusion, structural issues, unpermitted renovations, or prior illegal activity. However, remember that you must still conduct your own due diligence, as “buyer beware” remains the rule in BC real estate.

7. Verify Zoning, Permits, and Land Use Compliance

Before finalizing your purchase, confirm that your intended use of the property complies with local zoning bylaws. Contact the municipality or regional district to ensure there are no outstanding building or bylaw violations and verify that all past renovations were done with proper permits. You should also check for any heritage designations, floodplain restrictions, or future development plans that could impact the property’s value or use.

8. Purchase Title Insurance

Although optional, title insurance is strongly recommended for all buyers. It protects you against unforeseen title-related issues, such as fraud, forgery, encroachments, boundary discrepancies, or unknown liens. Title insurance can also provide coverage if there is a gap between the transfer and registration of ownership at the Land Title Office.

9. Understand the Completion, Adjustment, and Possession Dates

Your lawyer will prepare a Statement of Adjustments summarizing the purchase price, deposits, property taxes, utility adjustments, legal fees, and Property Transfer Tax.

It is essential to understand the distinction between the completion date, which is when title and funds are exchanged; the adjustment date, which is when you assume financial responsibility for the property; and the possession date, which is when you receive the keys and can move in. Confirm these dates align with your financing and moving plans.

10. Plan for Post-Purchase Obligations

Your responsibilities don’t end on completion day. Ensure you file your annual Speculation and Vacancy Tax declaration, update your Homeowner Grant (if applicable), and arrange appropriate property insurance. If the property will be rented, ensure compliance with the Residential Tenancy Act and local rental bylaws. Maintaining accurate records and keeping up with tax filings will prevent future disputes and penalties.

Final Thoughts

Buying property in British Columbia is a significant investment that requires careful planning and professional guidance. By taking these ten steps and engaging a lawyer early in the process, you can protect yourself from unexpected liabilities, ensure a smooth closing, and make an informed, confident purchase.

Abisoye Law Corporation is a BC-based law firm specializing in real estate, business, family and immigration law. Contact us via 778-302-2062 or email at info@abisoyelaw.ca.