Home Buyers Guide
Congratulations on making the decision to buy a new home!
The process is an exciting, but complex one. Don’t worry. Our team at Macdonald Realty is committed to providing you with expert guidance along the way. Let’s get started.
My job as your real estate agent is to help you narrow your search criteria and show you potential properties that meet your requirements. I write the offer and negotiate on your behalf. My service follows through to your possession of the property, and I can recommend service providers to assist you along the way.
This Home Buyers’ Guide will give you an overview of what to expect over the next several weeks. It cannot cover every question that may come up so please don’t hesitate to ask any questions you might have.
I look forward to working with you.
Cory Hunsche, Personal Real Estate Corporation
About Macdonald Realty
Macdonald Realty was founded in Vancouver back in 1944, and has continued to grow through the years and the changes in the real estate market. We’re solid, established and respected, with nearly 20 offices throughout British Columbia. Today, we’re Western Canada’s largest independent full service real estate company, with residential, commercial, property management and project marketing divisions. And we’re still proudly BC-owned and operated.
Education & Support
Our agents are backed by programs and support that allow them to offer the best service possible for their clients. From our mandatory training to ensure agents are up to date on industry changes, to our commitment to coaching and negotiation skills, clients can feel confident in the knowledge that our agents are operating with the latest information and strategies for the variety of situations that may arise during your home purchase.
GLOBAL CONNECTIONS
Macdonald Realty can help you buy here, across BC, Canada and in over 70 countries around the world. This means that if you or someone you know is buying real estate in another area we can introduce you to a top notch local real estate expert to assist you. Over the last 10 years our Relocation Department has helped clients buying investment or vacation homes in popular sun and ski destinations like Hawaii, California, Arizona and Colorado as well as those relocated for work or family reasons.
Macdonald Realty is a member of Leading Real Estate Companies of the WorldTM, a global community of real estate companies awarded membership based on rigorous standards for service and performance. This LeadingRE distinction ensures that you can count on a quality real estate experience when working with us and will benefit from our global connections to buyers and high quality real estate professionals around the world.
Together with our LeadingRE partners we form the #1 real estate network in North America based on annual unit sales.
About Cory Hunsche
A Little About Me...
With over 12 years of full-time real estate experience and more than 300 successful transactions representing over $200 million in sales, I’ve built my business on results, integrity, and relationships that last well beyond the closing date.
As a proud Medallion Club Member (Top 10% of the Fraser Valley Real Estate Board) and recipient of the Macdonald Realty Award of Excellence, I’m honoured to be recognized among the region’s top-performing Realtors. My certifications as a Certified Negotiation Expert (CNE) and Macdonald Realty Certified Mentor reflect my commitment not only to achieving exceptional results for my clients, but also to guiding and supporting new agents entering the industry.
My approach is straightforward: combine cutting-edge marketing, expert negotiation, and genuine care to deliver a seamless and rewarding real estate experience. Whether I’m helping a first-time buyer, an investor, or a family making their next move, I bring the same focus—to protect my clients’ best interests and make every transaction as smooth and stress-free as possible.
Real estate isn’t just my career—it’s my passion. Every home has a story, and I’m here to help you write the next chapter of yours.
Mortgage Pre-Approval
Determine exactly how much you can afford before we start looking. Your dream home could arrive on day one of your search. Let’s get prepared. Here are the advantages of getting a Mortgage Pre-Approval:
Budget
Narrow your search and save time seeing only homes you can afford.
Rate
Lock in a mortgage rate for up to 120 days with your pre-approval to protect against
potential mortgage rate increases.
Leverage
Your pre-approved status may be a valuable asset when making an offer to purchase or negotiating with a seller. It shows you are serious and have your finances in place.
Budgeting
Knowing your down payment and monthly payment amounts can help you manage cash flow and expenses leading up to your move.
IT'S FREE!
Pre-approval comes at no cost to you and you're not obligated to accept the mortgage.
Recommended Mortgage Advisors / Brokers
Sit down with a mortgage specialist to discuss your financial strategy and needs including; mortgage amount, down payment, and purchase price. They'll explain your mortgage options (fixed vs. variable rate, interest terms, payment options, and amortization) and discuss which of them best suit your needs. At that point you would proceed with the pre-approval paperwork.
Kirk Slaght, Scotiabank
[email protected]
604-218-5715
Abdul Safi, TD
[email protected]
604-626-5665
Jeff Pross, Spectrum Mortgage
[email protected]
604-603-6466
Home Buying Process
Here is a timelines of what the Home Buying Process looks like:
01
MEET WITH CORY
either virtually or in person
02
ENTER INTO AN AGENCY RELATIONSHIP
-Buyers Agency Acknowledgment Form
-Buyers Exclusive Agency Agreement
-Disclosure of Representation in Trading Services
03
PRE-APPROVAL
Determine your purchasing power with a Mortgage Pre-Approval
04
ANALYZE
Your wish-list and deal-breakers with Cory
05
VIEWINGS
Visit Open Houses and Private Showings
06
YES! WE FOUND OUR DEAM HOME
What's next?
07
DECIDE
Key elements of your offer
(price, deposit amount, dates & subject clauses)
08
OFFER
Cory prepares your offer (Legal Contract of Purchase & Sale)
09
NEGOTIATION
Cory Presents and Negotiates your offer
10
3 DAY RESCISSION PERIOD
You have 3 DAYS to rescind your offer (Home Buyer Recession Period)
11
CONDUCT DUE DILIGENCE
-Inspection
-Title Search
-Property Disclosure Statement
-Environmental
-Home & Fire Insurance to ensure Financing
Review Strata Documents (for Condos & Townhouses)
12
SUBJECT REMOVAL
Remove subject clauses and submit deposit check
13
LAWYER
Select a Lawyer or Notary to complete closing documents
14
INSURANCE
For Insurance on your new home
15
PREPARE
Make moving arrangements
16
COMPLETION DATE
Money and Title are exchanged on your behalf
17
POSSESSION DATE
Congratulations on your new home!
Buyer Agency
By choosing to work exclusively with Macdonald Realty, you are entitled to unparalleled customer service and legal protection.
Buying and selling real estate is often one of the largest transactions that most of us will make. The experience can be thrilling, financially rewarding, and stressful. A professional buyer’s agent will assist you through this process, and guide you through some of the pitfalls that greet potential property owners.
Understanding client needs and motivations are integral to producing positive results and building long-term relationships. Macdonald Realty agents are licensed real estate professionals who work within a legal framework called Agency. Agency provides the real estate agents the authority to represent your interests when dealing with other parties.
In the province of British Columbia, an agent owes fiduciary duties to clients whom they represent through agency relationships.
1. Loyalty
2. Avoiding Conflicts of Interest
3. Acting in the Best Interest of the Client
4. Fully Disclose Relevant Information
5. Protect your Confidentiality
Engaging an agent is an exclusive arrangement between agent and client, and ensures that your best interests are always protected. Macdonald Realty agents pride themselves on being industry leaders and possess an array of professional skills not commonly found in today's real estate industry.
Traditional Transaction Costs
This is by no means an exhaustive list, but it will give you an idea of some of the costs associated with a real estate transaction.
Seller's Costs
Lawyer's Fees
Attending to Execution of Documents
Costs of Clearing Title including:
- Discharge Fees charged by Encumbrance Holders
- Mortgage Prepayment Penalties
Real Estate Commission
GST on Real Estate Commission (5%)f
Buyer's Costs
Home Inspection
Appraisal
(if required for Financing)
Lawyer or Notary fees and expenses:
- Searching Title
- Investigating Title
- Survey Certificate (if required)
- Drafting Documents
- Land Title Registration Fees
- GST on legal fees (5%)
Insurance
Property Transfer Tax
- 1% on the first $200,000
- 2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000, and
- 3% on the portion of the fair market value greater than $2,000,000 ,and if the property is residential, a further 2% on the portion of the fair market value greater than $3,000,000.
GST
On new construction
Home Buyers Rescission Fee
0.25% of the accepted purchase price (if right of rescission is exercised)
Home Inspection
Provided that an inspection was one of the subject conditions of your offer, you will schedule a home inspection after the offer has been accepted by the seller(s). Often, particularly in multiple offer situations, a pre-inspection will be conducted before you make your offer.
Depending on the size of the property, the home inspection will usually take between two and four hours. As the buyer, you are responsible for paying for the home inspection. Costs vary depending on the inspector but generally range between $400 and $1500. Home inspectors usually require payment upon completion of the inspection so it is recommended that you confirm method of payment prior to meeting the inspector on site.
Upon the completion of the home inspection, the inspector will provide you with an oral report. The inspector will follow up with a written report identifying potential areas of concern related to plumbing, electrical, heating, roofing, foundation or structure.
If significant issues are discovered through the home inspection you have the option to withdraw your offer, request that the seller(s) make the necessary repairs or have your agent negotiate a price abatement to offset the cost of the expected repairs.
Home inspections are not intended to be used as a renegotiating tool and cannot be used to get you out of a contract because you have a change of heart.
Home Inspectors
Recommended Home Inspectors
Gary Ladwig
https://www.a-zhomeinspection.com
[email protected]
778-888-4893
Nigel Greenidge
https://enginspections.com
[email protected]
778-302-4663
Tyler Burley
https://www.burleyinspections.com
[email protected]
604-837-8300
Home Buyer Rescission Period
The Home Buyer Rescission Period, or ‘cooling off period’, was introduced January 3, 2023 across British Columbia.
THE RESCISSION PERIOD
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- Three (3) business days after an offer is accepted (beginning at 12:00 am midnight the day after the acceptance date; weekends and holidays are excluded);
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- Applies to both subject and subject free offers;
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- Runs concurrent to your subject period;
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- Not waivable.
THE RESCISSION FEE
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- 0.25% of the accepted purchase price.
For example, if the purchase price is $1,000,000 the rescission fee would equal $2,500. The rescission fee cannot be increased or decreased. It is set at 0.25% for everyone. -
- Payable by the buyer to the seller within 14 days if the right of rescission is exercised. WHEN THE RIGHT OF RESCISSION IS EXERCISED
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- The buyer (or their agent) must complete, sign and serve the Notice of Rescission to the seller (or their agent) before 11:59 pm on the third day of the rescission period;
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- If the buyer has paid a deposit to the brokerage and then rescinds their offer, regardless of what was agreed to in the contract, the brokerage must pay the rescission fee (0.25%) to the seller and return the balance (if any) to the buyer. No written release is required in this instance.
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- If the brokerage is not holding the funds, then the seller will need to seek legal advice as to how to collect the funds from the buyer.
The Home Buyer Rescission Period applies to all residential properties bought and sold in British Columbia, excluding court ordered sales (foreclosures), auctions, leasehold properties and properties that are located on leased land. Commercial properties are also excluded from the right of rescission. Pre-sales for new developments where the developer has a disclosure statement have a seven (7) day rescission period and their rescission period operates under different parameters.
Property Transfer Tax (PTT)
STANDARD PTT CALCULATIONS
Property Transfer Tax (PTT) applies to the sale of all properties. It is calculated as:
-
1% on the first $200,000,
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2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000, and
-
3% on the portion of the fair market value greater than $2,000,000, and if the property is residential, a further 2% on the portion of the fair market value greater than $3,000,000
For example, if the fair market value of a property is $650,000, the tax paid is $11,000.
Foreign nationals and foreign corporation are required to pay an additional 20% property transfer tax on residential property located in the Greater Vancouver Regional District, Fraser Valley Regional District, Capital Regional District, Regional District of Nanaimo and Regional District of Central Okanagan.
FIRST TIME BUYERS & PTT EXEMPTION
First time home buyers are eligible for a Property Transfer Tax Exemption provided they meet the following criteria:
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The home must be claimed and used as a principal residence;
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The buyer must never have previously owned property anywhere else in the world;
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The buyer must be a Canadian citizen or a resident of Canada and have resided in BC for at least one year prior to the purchase of the property.
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The full PTT exemption applies to properties priced at $835,000 and below and must be 0.5 hectares or smaller. You may qualify for a partial exemption from the tax if the property has a fair market value more than $835,000 but less than $860,000, is larger than 0.5 hectares, and has another building on the property other than the principal residence.
On the purchase of a new construction the exemption is set at $1,100,000 and below. You may qualify for a partial exemption if the property has a fair market value greater than $1,100,000 and less than $1,150,000.
There is no exemption for the 20% tax.
Common Subject Clauses
DETACHED HOMES
The purpose of ‘subject clauses’ is to allow a particular party (buyer or seller) a specific period of time to confirm and clarify specific types of information integral to the purchase and sale of property.
While there are hundreds of potential subject clauses, typically, when buying a detached single family home, there are at minimum five subject clauses that are placed within the contract.
They are:
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Subject to being approved for mortgage financing
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Subject to satisfactory inspection
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Subject to receiving and approving the title search
-
Subject to approving the Property Disclosure Statement
-
Subject to arranging fire and property insurance.
Subject conditions must benefit a particular party to the contract (either buyer or seller) and must be removed by a specified date. Upon successful removal of all subject clauses, the contract becomes subject free. If subject conditions cannot be removed on or before the date specified in the contract, the parties may mutually agree to either extend the subject removal date or collapse the offer. Your agent will be able to explain the process and potential implications.
CONDOS AND TOWNHOMES
Offers on “Strata Title Properties” can be more complex by nature than those on detached properties. Although a buyer and their agent may be looking to purchase one strata lot within a building of strata apartments, they rely on receiving specific types of information relating to the strata lot, the building and the strata corporation. Often, this information comes from the listing agent, the property management company (if applicable), and/or the strata corporation itself.
When buying an apartment or townhome, typically the same five common subject clauses are used as with detached homes plus subjects related to the review and approval of documents containing information about the strata corporation and the strata lot.
These include:
- Form B
- Minutes
- Financial Statement & Strata Plan
- Consultants Reports & Depreciation Report
As with detached homes, subject conditions on attached homes must benefit a particular party to the contract (either buyer or seller) and must be removed by a specified date. Upon successful removal of all subject clauses, the contract becomes subject free. If subject conditions cannot be removed on or before the date specified in the contract, the parties may mutually agree to either extend the subject removal date or collapse the offer. Your agent will be able to explain the process and potential implications.
This is by no means an exhaustive list, but it will give you an idea of some of the additional costs associated with a real estate transaction.
ASSIGNMENT OF CONTRACTS
A contract assignment occurs when a buyer transfers the contract to buy property to someone else before the completion date.
For assignments of pre-sale contract The Real Estate Development Marketing Act allows an assignment to occur. The developer’s contract of purchase and sale will outline if the developer’s approval is required and any costs they may charge for the Assignor (original Buyer on the contract).
For assignments of non pre-sale contracts new rules came into effect in The Real Estate Services Act on May 16, 2016. They require the licensed agent to alter a clause in the contract of purchase and sale, add a clause regarding assignments and use the required Notice to Seller Regarding Assignment Forms to produce an offer that allows the buyer to possibly assign the contract to another party at a future date. As a buyer, it is important to discuss possible assignment scenarios with your agent when writing your contract of purchase and sale.
The amendments further provide that licensees (original buyers agent) must take certain steps if they are involved in a potential real estate transaction where an offer to be presented to the seller does not include the Standard Assignment Terms. These requirements are further discussed below.
For Real Estate Services Act regulated assignments the Real Estate Council’s form entitled Notice to the Seller Regarding Assignment Terms must be used if that offer does not include one or both of the following terms (Paragraphs 20A & B of the standard Contract of purchase and Sale):
A term that provides that the contract must not be assigned without your written consent; A term that provides that you are entitled to any profit resulting from an assignment of the
contract by the buyer or any subsequent assignee.
A Buyer (Assignee) is advised to obtain legal advice before entering into an assignment of a contract. Should the Assignee not complete the purchase then the Assignor is responsible to complete the purchase under the terms of the original contract of purchase and sale.
Understanding Market Conditions
It is important to know what the current market conditions are in the area you are looking. Here are some terms to help get you acquainted.
SELLER’S MARKET
A Seller’s Market is considered a “hot” market. This type of market is created when demand is greater than supply—that is, when the number of buyers exceeds the number of homes on the market. As a result, these homes usually sell very quickly, and there are often multiple offers. Many homes will sell above the asking price.
BUYER’S MARKET
A Buyer’s Market is a slower market. This type of market occurs when supply is greater than demand, when the number of homes exceeds the number of buyers. Properties are more likely to stay on the market for a longer period of time. Fewer offers will come in, and with less frequency. Prices may even decline during this period. Buyers will have more selection and flexibility in terms of negotiating toward a lower price.
BALANCED MARKET
A Balanced Market is one where supply equals demand, the number of homes on the market is roughly equal to the number of buyers. Buyers will have a decent number of homes to choose from, so sellers may encounter some competition for offers on their home, or none at all.
Overview of the Closing Process
WHAT HAPPENS AT THE LAWYER OR NOTARY OFFICE?
Several days before the completion date you will meet with your Lawyer or Notary to sign the documents for the purchase of your property. You will need to bring two types of identification with you such as a driver’s licence and passport. Once your identity has been verified your legal representative will review all of the documents and have you sign them.
One of the documents they will provide you is the Statement of Adjustments showing all the costs relating to the transaction.
These are the things that happen on closing day:
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- Your lender will give the mortgage money to your lawyer/notary.
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- You must give the down payment (minus the deposit) to your lawyer/notary. You must also give the remaining closing costs.
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- Your lawyer/notary pays the Seller and registers the property in your name
Under the Torrens System of Land Transfer your legal representative will ensure only non-financialcharges transfer with the property such as:
- covenants
- zoning designation § rights-of-way
- easementsWhen the property is registered in your name you will have indefeasible title in fee simple, i.e. land ownership. This will have been registered at the Land Title Office by your lawyer/notary.
Overview Of The Possession Process
WHEN DO YOU TAKE POSSESSION AND GET KEYS?
-
The contract of purchase and sale will have a possession date which will allow you access to your property. This usually occurs at noon, or at 1pm for tenanted properties, or as otherwise stated in the contract of purchase and sale.
Once your property is registered at Land Title Office you are the new owner!
Your agent’s brokerage will notify your agent that the property has registered and they will be able to hand over the keys to you on possession.
On possession day do a walk-through of your property with your agent to make sure it is in the condition that you originally viewed it in. Also check all the systems such as plumbing, electrical, HVAC, appliances, etc. to ensure they are in proper working order. Now you can enjoy your new home!
Useful Real Estate Terms
ADJUSTMENT DATE
The date agreed to by both parties for the allocation and adjustment of property taxes, interest, utilities, rents and other appropriate items. This date is usually the same as the possession date.
AGREEMENT FOR SALE
The Seller agrees to sell the property to a Buyer on credit terms. Normally the Seller carries the financing himself and the Buyer arranges a payment with the Seller. The Seller remains on the title as registered owner. Very similar to a first mortgage. The agreement for sale is the registered contract.
AMORTIZATION
The paying off of debt with a fixed repayment schedule in regular installments over a period of time. Consumers are most likely to encounter amortization with a mortgage or car loan.
APPRAISED VALUE
A report made by a qualified person giving an estimate of value, based on experience, comparable sales and pertinent data relating to the property.
ASSESSED VALUE
Used for the purpose of assessing property tax by a local municipality, this property value is assessed by the B.C. Assessment Authority.
CHATTELS
Personal property not attached or affixed to the land or property. Also refers to appliances, etc. in a rental property.
CO-OP SUITE
A co-op is a company formed to create and operate defined living spaces within a building. A Buyer purchases shares in the company that normally owns the building. The purchase of these shares usually entitles the owner to the sole use of a suite in a co-op building through a long term lease or shareholder’s agreement.
COMPLETION DATE
The date on which the Seller is entitled to the net proceeds of the sale and the Buyer is entitled to the transfer of the title. Real Estate commissions and legal fees are paid out at this time.
DEPOSIT
Money taken at the time of acceptance or upon final subject removal as a sign of good faith. This money is held in a real estate company’s trust account pending the completion of the purchase and are credited towards the purchase price.
FIXTURES
All things attached to the property or growing on it. To avoid this dispute, specify in writing any items that will not be included in the sale of the property. Better yet, remove them prior to offering the property for sale.
FSR
Floor Space Ratio. A City zoning term that defines the maximum allowable square footage to be built or occupied in a building in relation to its lot size.
GROSS TAXES
The total amount of taxes owing as per your B.C. Assessment and municipal property tax bill before any deductions are made.
HIGH RATIO MORTGAGE
A situation where the loan exceeds 80% of the appraised value (or the selling price – whichever is lower). This loan must be insured by C.M.H.C. (Canadian Mortgage and Housing Corporation), G.E. Capital (Mortgage Insurance Canada) or other insuring agencies for a fee.
MARKET VALUE
The highest price paid for a piece of property which has been exposed ‘for sale’ in the open market allowing a reasonable time to find a Buyer.
NET TAXES
The amount owing after allowable deductions made such as homeowners’ grant and senior citizen’s deductions.
OFFER
Offer to Purchase. A promise made by one party, the offeror, to another party, the offeree. A legal agreement which offers a certain price for a specified piece of real estate.
POSSESSION DATE
The date the Buyer is entitled to possession of the property at twelve noon that day, subject to existing tenancies.
PROPERTY DISCLOSURE STATEMENT (P.C.D.S. OR P.D.S.)
The Property Disclosure Statement is designed to protect all persons involved in real estate transactions. It provides a written record of representations made and, as importantly, not made, allowing the Buyer the opportunity to review the condition of your property so you’re less likely to overlook a defect. Disclosure can make the property more attractive to potential Buyers who often require completion of this form to reduce any risk of misunderstanding.