What is a Conveyance? What is Conveyancing?

Conveyancing is the legal process of transferring real estate from one party to another.

Conveyancing is similar for single family residential property transfers, strata property transfers, and commercial property transfers. No matter the type of property you’re involved with, Arora Zbar can assist.

What is a Contract of Purchase and Sale?

A Contract of Purchase and Sale is a legally binding contract that realtors complete to show that an agreement has been reached regarding the subject property. The standard Contract of Purchase and Sale includes:

At what point in the process do I need a lawyer?

Usually, lawyers don’t get involved until a Contract of Purchase and Sale (sometimes referred to the “CPS” or “Contract”) is signed and subjects are removed. We recommend that buyers and sellers retain a lawyer once subjects are removed. We also offer Contract review prior to the offer, as a separate service.

Are you ready to engage with Arora Zbar’s services? Check out our conveyancing pricing app or send us a message and let’s get this process started!

What kind of due diligence does a lawyer do for me?

For buyers, the first step that we at Arora Zbar perform on your behalf is the required due diligence. Once onboarded, your lawyer conducts due diligence to ensure you are getting exactly the property you bargained for. This involves requesting and inspecting several documents, some of which may require a fee for your lawyer to obtain.

The most common due diligence documents reviewed by your lawyer:

>  A title search from the BC Land Title and Service Authority (LTSA). A title search shows the current registered owner on title, the legal description of the property, and any charges, liens, and / or interests attached to the property. These could include easements, mortgages, builder’s liens, restrictive covenants, and statutory rights of way.

>  Municipal property tax and utility information. This document is requested directly form the municipality in which the property is located. It shows the current amounts outstanding, if any, and the last year’s amounts payable for municipal property tax and utilities.

>  Strata documentation (if applicable). With strata property, your lawyer will order a copy of certain strata documents, which usually include the bylaws, common property charges, the strata plan of the property, a Form F Certificate of Payment, and a Form B Information Certificate from the strata corporation. Even if your realtor has ordered these, it is likely your lawyer will have to order them again. Form F Certificate of Payment provides information about whether the owner of a strata owes money to the strata corporation. Form B Information Certificate includes other important information about the strata property. This can include monthly strata fees, the amount in the contingency funds, information about parking stalls and/or storage lockers, and any changes to the strata bylaws that have not been filed with yet with the LTSA.

>  Proof of Insurance (sometimes called an Insurance Binder)If a mortgage is involved, you will need to prove that the property is insured, including any Strata corporation.

>  Corporation Search (if required). If a corporation is involved in the transaction, then the lawyer will order a corporate search to see if the corporation is lawfully incorporated in the relevant jurisdiction, such that the sale can be completed properly.

>  Other inquiries as requested. If instructed, a lawyer can make zoning/ land use inquiries or any other inquiries in any other registry or office:

1. Personal property registry

2. CRA clearance certificate

3. Court registry

What documents can I expect to sign?

Conveyancing is a document-heavy process. In a real estate transaction, the buyer is usually responsible for preparing the documentation for both the buyer and the seller.

When and how do I sign the documents?

Every purchase and sale requires at least 1 “wet ink” signed document.

You should only need to meet with your Arora Zbar lawyer once, about two days before the Completion Day. This meeting is to review and sign the required documents.

Since your lawyer needs to witness the signature of some documents, if this meeting is done virtually, you will need to print documents, and be prepared to be recorded on a webcam while your lawyer witnesses the signature of the requisite documents.

If you do not have easy access to a webcam, printer, and scanner please book an in person appointment to sign.

Do I need to be in town for closing day? What if I can’t?

If you’re not going to be physically near the property you’re buying for the week before, and on closing day, let us know right away. That way, your signing meeting and any last minute issues can be easily resolved.

If you live outside Canada, or will be outside Canada the week before or on closing day, let us know right away, you will likely need to see a notary in your area at an additional cost.

What about the realtors?

Once you tell your realtor that Arora Zbar LLP is your lawyer, we will gather all the documents we need from them. We will be in contact with both buyer and seller’s realtor to receive a Conveyancer’s Instruction Report. This document includes the amount of commission owed to the realtors involved in the real estate transaction.

What does Arora Zbar need from me to get started?

Once you’ve decided to retain Arora Zbar to complete your real estate transaction, our first step is receiving a copy of the Contract for Purchase and Sale. Within a few days of receiving this document, we will send you a DocuSign engagement letter to sign, and an intake form which collects all the information we need to get started.

What happens on closing day?

What about my mortgage?

If you are purchasing with a mortgage, your lawyer will also be in contact with your mortgage broker and receive the mortgage instructions. Mortgage instructions include:

1. The details of your mortgage loan agreement

2. Documents required to fund the mortgage

3. Any other special requirements for your mortgage

If you are selling and paying off a mortgage, we will ensure it gets paid out and discharged from title.

What happens after closing day?

It takes time for the BC Land Title and Survey Authority to fully process the documents that Arora Zbar files. The LTSA is a crown corporation which is responsible for operating the land title and survey system in British Columbia.

The LTSA accepts registration of documents on a pending basis until it inspects the documentation one at a time, for every single real estate transaction in BC. Once the LTSA fully registers the documentation, it provides notice to Arora Zbar.

Once we receive that notice, and confirmation that any existing financial charges on title have been discharged by the seller’s lawyer, we obtain a State of Title Certificate (STC). This STC is a certified copy of a land title, and is conclusive evidence of ownership or possession of property. It usually take between 4 – 12 weeks before we can request the STC.

Offboarding

Once the State of Title Certificate is issued and all the requisite documentation is fully filed, then we will return any of your funds that may be left in our trust account and return all original signed documents to you via registered mail

Now that you understand our process, are you ready to engage with Arora Zbar’s services? Check out our conveyancing pricing app or send us a message!

When do I pay my down payment/purchase funds?

Usually, you pay the balance of your down payment by bringing a bank draft made out to “Arora Zbar LLP, in Trust” to the signing meeting. However, depending on the timing of your meeting to sign documents, and whether you are signing on in person or online, you may have to drop a bank draft off at our office, or deposit it directly into our trust account at any BMO or TD branch in Canada. We will help coordinate the payment based on your unique transaction.

Some banks can take 3-5 business days to move your money. Please let us know if your bank requires extra notice of the Down Payment amount, so we can endeavour to give you that figure in sufficient time.

When do I find out my total down payment/closing costs/purchase price?

Your down payment is the difference between the purchase price, the deposit, all of the adjustments, and any mortgage. The buyer’s statement of adjustments will include the down payment amount required.

For example:

– if the purchase price is $1,000,000.00 including property transfer tax, adjustments, and closing costs/ legal fees,

– your deposit was 5% of that amount ($50,000.00)

– your mortgage is for $900,000.00

– Then your down payment would be $50,000.00.

What is Property Transfer Tax (PTT) and how is it calculated?

Property Transfer Tax (PTT) is a tax payable to the BC Ministry of Finance when a property is transferred and registered with the Land Title Office. It is due on the completion date and forms part of the closing costs.

PTT is calculated as follows:

– 1% on the first $200,000 of the property’s fair market value

– 2% on the portion from $200,001 to $2,000,000

– 3% on the portion over $2,000,000

– An additional 2% on the portion of residential property value over $3,000,000

Your lawyer or notary will calculate and pay the tax on your behalf as part of the closing process.

How can a purchaser qualify for a PTT exemption as a first-time home buyer?

You may qualify for a full or partial exemption from PTT if you meet the following conditions:

> You are a Canadian citizen or permanent resident

> You’ve lived in BC for at least 12 consecutive months prior to registration (or filed 2 income tax returns in BC in the past 6 years)

> You have never owned a principal residence anywhere in the world

> The fair market value of the property is $500,000 or less for a full exemption, with partial exemptions available up to $525,000 (Exemption Threshold)

> You must move into the home within 92 days of registration and use it as your principal residence for at least one year.

What is the Additional Property Transfer Tax for foreign buyers?

As per additional property transfer tax, foreign nationals, foreign corporations, and taxable trustees may be subject to an additional 20% tax on the fair market value of residential property in certain regions of BC.

This tax applies in:

> Capital Regional District
> Fraser Valley Regional District
> Metro Vancouver Regional District
> Regional District of Central Okanagan
> Regional District of Nanaimo

The additional property transfer tax doesn’t apply to properties located on Tsawwassen First Nation treaty lands.

In some circumstances, exemptions may apply, including for individuals nominated under the BC Provincial Nominee Program, subject to meeting eligibility criteria.

What is the BC Home Flipping Tax and how it affects sale of properties? (Effective January 2025)

Effective January 1, 2025, the BC Home Flipping Tax is a new provincial tax designed to discourage short-term speculation in the residential real estate market. It applies to individuals and corporations who sell or assign residential properties within two years of acquiring them.

How the Tax Works

The tax is applied to profits earned from the sale or assignment of residential real estate.

It applies to:

> The sale of property within two years of acquisition

> The assignment of pre-sale contracts (i.e., selling your right to a property before completion)

– A pre-sale assignment occurs when a purchaser of a new development unit (usually a condo or townhome) sells their contract to a new buyer before the unit is built and title is transferred. The new buyer steps into the original buyer’s place and completes the purchase from the developer.

This tax is in addition to any federal and provincial income tax on capital gains or business income from the transaction and may apply to both individuals and corporations.

What Transactions Are Caught?

> Detached homes, townhomes, condos, and assignments of purchase contracts

> Applies whether the property was purchased for investment, personal use, or as part of a development

Who Pays the Tax?

Individuals and corporations who:

> Sell the property within two years of purchase

> Realize a profit on the transaction (the tax applies to the profit, not the gross sale price)

What Are the Exemptions?

The tax does not apply in certain life circumstances, including:

> Death of the owner or a related family member

> Serious illness or disability

> Separation, divorce, or breakdown of marriage/common-law partnership

> Job relocation (minimum distance applies)

> Insolvency, foreclosure, or threat of foreclosure

> Property destruction due to natural disaster or expropriation

Note: Proper documentation must be provided to support a claim for exemption.

The Refinancing Process in British Columbia

What is Refinancing?

Refinancing involves replacing your existing mortgage with a new one—typically to access equity, secure a better interest rate, or consolidate debt. While the process is similar to a purchase transaction, it involves different steps and legal considerations.

Key Steps in a Refinancing Transaction

1. Instruction from the New Lender

– Your lawyer or notary receives mortgage instructions from your new lender outlining their requirements for the refinance.

2. Title Search & Review of Existing Charges

– A title search is conducted to confirm ownership and identify any existing charges (e.g., current mortgage, liens, judgments).

3. Payout Statement Request

– Your lawyer contacts your existing lender for a payout statement—a document showing the exact amount required to discharge the current mortgage.

4. Document Preparation & Signing

– You attend a signing appointment to review and execute mortgage documents, including a new mortgage commitment, Form B (Mortgage), and acknowledgments/disclosures.

5. Disbursement Coordination

– On the completion date, your lawyer:

> Receives mortgage funds from the new lender.

> Pays out the existing mortgage and any other registered charges.

> Disburses remaining funds to you, if applicable.

6. Discharge of Existing Mortgage

– The existing lender confirms receipt of funds and authorizes the discharge of their charge on title.

7. Registration with the LTSA

– The new mortgage is registered with the Land Title and Survey Authority (LTSA) of British Columbia.

– The discharge of the previous mortgage is also filed to update title records.

8. Final Reporting

– Your lawyer prepares a report to you and the new lender, confirming registration and providing proof of title and financial accounting.

This process typically takes 5–10 business days from receiving mortgage instructions. For a smooth refinance, ensure your property taxes and strata fees (if applicable) are current and that you disclose any secondary financing.