Pre-Sold Strata Unit
When you purchase a condo unit on the open market well in advance of the completion of the building, you will generally pay property transfer tax on the total amount you paid to acquire the property. The total amount includes any money paid for:
- upgrades or additions, or
- any other premium for assignment of a written agreement
You may transfer the right to purchase the property to a related individual (doesn't include brothers and sisters) before the property is registered at the Land Title Office without affecting the taxable amount.
If the right to purchase is transferred to someone that isn't a related individual, they will need to pay tax based on the fair market value of the property at the time the property was registered at the Land Title office.
This doesn't include bare land stratas.
If you’re a foreign entity or taxable trustee and the pre-sold strata unit is located in the Greater Vancouver Regional District, you pay the additional property transfer tax in addition to the property transfer tax.
The additional tax is payable when you register the property. If a foreign entity or a taxable trustee signs the original contract, but then assigns the contract to a Canadian citizen or permanent resident before the property is registered, the additional tax won’t apply. However, penalties may be applied if there is proof the assignment was done for tax avoidance purposes.