Buying Process in Canada

Most areas of Canada do not have restrictions on foreign ownership of property. However, some areas limit the amount of land or property a non-resident can have.

You will need to make a written offer on a property, then both you and the seller sign a preliminary contract. At this point you will be required to pay a deposit on the property. This contract is legally binding, and if any of the parties back out, a penalty will be payable, in the buyers case this would normally mean loosing thier deposit.

The above mentioned preliminary contract is either 'firm' or 'conditional'. A firm contract means that the buyer will purchase the property exactly the way it is, without any amendments or conditions. A conditional contract protects the buyer better, by ensuring that things such as a survey, or mortgage being secured are fine. If the seller does not meet any of these conditions the deal can be annulled without the buyer loosing thier deposit.

On the completion date, the remaining balance, plus all fees are payable, and the buyer and seller both sign the final contract, the sale is complete.

Typical Fees and taxes

Transfer tax is normally between 0.5% and 2% of the property value, however this does not apply in Alberta, rural Nova Scotia and Saskatchewan.

Goods and Services tax (GST) will be payable on new builds at 7%, however does not apply to resale property.

The annual local property tax is between 0.5% and 2.5% of the properties value. This amount does vary.

Agents fees are between 3% and 7%

Legal fees should be expected to be between $500 and $800.