If you are looking to Buy a Property in an area, of the Province of British Columbia, where Speculation Tax is payable, you need to know that you are not on the hook for an outstanding Bill where the Seller hasn't paid.
In a recent BC Real Estate Association Bulletin came good news for Buyers and their Real Estate Agents, in that they don't have to worry about including a clause in a Contract of Purchase and Sale that specifies that a Buyer won't be held liable for the Speculation and Vacancy Tax (SVT).
- When a buyer purchases a residential property, they will either pay the Property Transfer Tax (PTT) or be exempted from the PTT because they took advantage of an exemption like the First Time Home Buyers' Exemption or Newly Built Homes Exemption. Payment of the PTT (or exemption) means you're eligible for an exemption of the SVT for the year of purchase.
- The SVT is levied on the person who owns the property on December 31 of the calendar year. That means if...