What sources can a transferee use to determine whether a house is “new” or not?
Information sources that can be used to determine whether the property qualifies as “new” under the Newly Built Home Exemption include, but are not limited to:
The vendor: the information is included as part of the contract of purchase and sale
LTSA: a title search shows that the application with the land title office is the first application for registration in respect of the qualifying property since the residential improvement was either built or placed on the parcel of land or since the subdivision of the parcel of land and the division of the improvement were effected
Municipal records searches such as Building Permits
BC New Homes Registry
BC Assessment information
The New Homes Warranty Insurance program
What happens if the transferee claims the newly built home exemption and they discover the house is not new?
If a transferee claims the newly built home exemption when they register a taxable transaction, but the property is not a qualifying property, the transferee becomes liable for the amount of property transfer tax that would have been payable at the date of registration, had the exemption not been claimed. The tax payable is due immediately in order to avoid additional interest accruing on the account.
