As a homebuyer in British Columbia, it's crucial to understand the recent changes to the Residential Tenancy Act, particularly Bill 14's impact on purchasing tenant-occupied properties.

These amendments, have significant implications for buyers seeking vacant possession.

Key Changes for Buyers

The notice period for vacant possession has been reduced from four months to three months.

Buyers now have a 21-day window (down from 30 days) to dispute a notice to end tenancy.

A new web portal must be used to generate Notices to End Tenancy for personal occupancy.

Steps for Buyers Seeking Vacant Possession

Submit a written request to the seller, stating your intention to occupy the rental unit.

Ensure the seller provides the tenant with a Three Month Notice to End Tenancy for Purchaser's Use (RTB-32P).

Be prepared to occupy the unit for residential purposes for at least 12 months.

Important Considerations

The changes aim to balance tenant protection with the needs of homebuyers, especially first-time buyers.

Compensation equal to one month's rent must be paid to the tenant.

Failure to occupy the unit as intended may result in penalties, including paying the displaced tenant 12 months' rent.

Who Can Occupy the Property

As a buyer, you should be aware of who is eligible to occupy the tenant-occupied property:

You, as the purchaser

Your close family member (parent, spouse, or child)

It's important to note that the occupancy must be for residential purposes and must last for at least 12 months.

Tips for a Smooth Transaction

Work closely with your realtor to navigate these new regulations.

Plan your move-in date accordingly, factoring in the three-month notice period.

Consider including specific clauses in your purchase agreement to address tenant-related issues.

Be prepared to provide personal information, including your date of birth, to the Residential Tenancy Branch for the purpose of generating the notice.

By understanding and following these new rules, you can ensure a smoother home-buying process when purchasing a tenant-occupied property in British Columbia.

Starting January 1, 2025, British Columbia introduced the Home Flipping Tax, aiming to reduce speculative short-term property sales and improve housing affordability. Here's what you need to know to stay ahead of these changes.

What is the Home Flipping Tax?

The tax applies to profits earned from selling a property in BC (including presale contracts) if the property is owned for less than 730 days. Properties sold within 365 days face a 20% tax rate on profits, decreasing over the next 365 days. After 730 days, the tax no longer applies.

This tax is imposed under the Residential Property (Short-Term Holding) Profit Tax Act. It operates separately from federal property flipping rules, focusing specifically on discouraging short-term property holding as part of BC’s Homes for People Plan.

Who Does It Apply To?

Anyone, including individuals, corporations, partnerships, and trusts, who sells a qualifying property owned for less than 730 days after January 1, 2025, may be subject to this tax. Even properties purchased before this date could qualify if sold after January 1, 2025.

Exemptions and Deductions

Exemptions apply in cases like significant life events (e.g., death, divorce) or specific circumstances such as property gifts or related-party transfers. Additionally, a primary residence deduction of up to $20,000 may be available if you meet ownership and residency conditions.

Key Considerations for Buyers and Sellers

• Presale Contracts: The tax applies to assignments of presale contracts if owned for less than 730 days.

• Days of Ownership: Calculated from the purchase date to the sale date, including presale assignments.

• Separate Tax Filing: This tax requires a distinct return, independent of your annual income tax filing.

• Plan Ahead

Whether you're buying, selling, or holding, understanding this tax is crucial to making informed real estate decisions. Reach out to discuss how these changes could impact your real estate plans—I'm here to help you navigate these new rules confidently!

Source: Government of British Columbia - https://www2.gov.bc.ca/gov/content/taxes/income-taxes/bc-home-flipping-tax