Legal Aspects of Purchasing Real Estate

By MARKO MARYNIAK, JD

Having settled on their ‘dream property’ and then dealt with various professionals including real estate agents, mortgage brokers, interior designers, builders, rental managers, prospective tenants, and movers, purchasers can sometimes overlook the importance of the title transfer process – it’s the last link in the chain, but one of the most important ones.

Whether you are considering purchasing your first home, or investing in a recreational or rental property, the help of an experienced real estate lawyer is an essential element of the process.

Some of the things your lawyer should assist you with are included in the following list.

1.Title Review. In the East Kootenays, title is rarely simple, especially respecting a recreational property. The list of covenants, building restrictions, architectural guidelines, local area charges, not to mention easements and rights of way, can be a long one on many titles. Your lawyer should not only review title with you, but also provide you copies of these charges and explain them to you.

2.Ownership. Often, a mortgage company will require a co-signer, or co-owner. You may be a non-resident wanting to plan carefully for the tax implications of selling. Or, you might want to plan for the future, and take title jointly with your spouse or other family members. Your lawyer should take the time to discuss your plans with you.

3.Taxes, taxes, taxes. In most cases, Property Transfer Tax is unavoidable. However, there are exemptions for certain classes of purchasers. In addition, if you purchase an acreage or farm property, there are steps you can take to keep the property in “farm class” to avoid paying exorbitant property taxes. There is capital gains tax, exigible at the time of sale. Non-residents are treated differently than residents in this regard. Finally, GST is always an issue, especially with recreational, commercial, and rental properties. Your lawyer should be knowledgeable on these issues.

By the time you get to choosing a lawyer to help you with your real estate transfer, you may feel exhausted by the whole process. Nevertheless it is important to take the time to shop around and find an experienced professional who will act in your best interests in the purchase of your property, and help you protect your investment. 

- Marko Maryniak, J.D. is a local lawyer and owner of Rockies Law Corporation, with offices in Fernie and Kimberley. When not at the office, you can probably find Marko on a river, trail, or ski slope.  Copyright ©2008 Rockies Law Corporation.