Jon Chaudhari

Selling Advice - Foreign Ownership

The seller of a property in Whistler, resident of Canada or not, is responsible for the following costs:

• Lawyer or Notary Fees & Expenses: Include attending to the execution of documents and discharging any encumbrances.
• Obtaining a Clearance Certificate: You will need a Clearance Certificate from Revenue Canada prior to the completion date of your transaction. The current wait for a Clearance Certificate is 6 to 8 weeks, so it is important to contact your lawyer or accountant as soon as an accepted offer has been received. Before issuing the Clearance Certificate, Revenue Canada will need to collect any tax payable on the property to be sold.
• Pre-payment penalties: In Canada, a mortgage is for a fixed term usually between 6 months and 5 years. There are penalties to selling the property before the term of the mortgage is up and are usually the greater of three months interest or the interest rate differential.
• Real Estate Agent's Commission
• Goods & Services Tax: The GST is a 5% tax that applies to the purchase of new construction and on the resale of accommodations that have been rented out for short term or nightly rental. The payment of the GST can be deferred if the new purchaser intends to use the accommodation for short term or nightly rental at least 90% of the time and s/he becomes a GST registrant. Click here for more information on the GST.
• Calculating Capital Gain: To determine the adjusted cost base in order to calculate capital gain, Revenue Canada allows the following:
  - Property Transfer Tax
  - Legal fees and disbursements associated with the purchase
• Furnishings and renovations: If included in the selling price
  - GST
  - A portion of the interest on mortgage payments

We deal frequently with non-resident vendors and are equipped to facilitate the process for you. Contact us if you have any questions regarding foreign ownership sales.