BC Real Estate Trading Services Course Land Title and Registration in BC 3

Question 1

What is the BC Property Transfer Tax (PTT) rate applied to the first $200,000 of a property's fair market value?

Accepted Answer

1%

Answer

BC's PTT rate is 1% on the first $200,000 of fair market value, 2% on amounts from $200,001 to $2,000,000, and 3% above $2,000,000.

Question 2

Under BC's First-Time Home Buyers' Program, at what fair market value threshold does a buyer qualify for a full PTT exemption?

Accepted Answer

Properties with FMV up to $835,000

Answer

The BC First-Time Home Buyers' Exemption provides a full PTT exemption for properties with a fair market value up to $835,000 (partial exemption up to $860,000).

Question 3

Which document do BC real estate licensees use to disclose known material facts about a property's condition and title to potential buyers?

Accepted Answer

The Property Disclosure Statement (PDS)

Answer

The Property Disclosure Statement (PDS) is used by sellers to disclose known material facts about the property, including any known title issues, to prospective buyers.

Question 4

In a BC real estate transaction, when does legal title to the property actually transfer to the buyer?

Accepted Answer

When the Form A Transfer is registered at the LTSA

Answer

Under BC's Torrens system, legal title passes to the buyer only upon registration of the Form A Transfer at the LTSA, not simply when funds change hands.

Question 5

What does title insurance protect a BC property buyer or lender against?

Accepted Answer

Title defects, fraud, and certain risks that may not appear on the register at the time of purchase

Answer

Title insurance protects against financial loss from title defects, undisclosed encumbrances, fraud, or errors in the registration system that may not be revealed by a title search.

BC Real Estate Practice Test

BC Real Estate Practice Test

BC Real Estate Trading Services Course Land Title and Registration in BC 3