The transitional rules explain how HST will apply to transactions that straddle the start-up date. For purposes of the following discussion, it is assumed that a REALTOR'S® commission becomes due or is paid when the property is sold or leased.

The HST would generally apply to a REALTOR'S® services to the extent, expressed as a percentage, that the services are performed on or after July 1, 2010. However, if 90% or more of the services are performed before July 1, 2010, the HST will not apply.

For example, a REALTOR'S® services are performed from June 1, 2010 to July 2, 2010 with the sale of the property closing on July 2, 2010. The REALTOR'S® commission becomes due at the time of closing. More than 90% of the REALTORS® services were performed before July 1, 2010. In these circumstances, the GST at the rate of 5 percent will apply to the REALTOR'S® services.

In another example, a REALTOR'S® services are performed from May 1, 2010 to July 31, 2010 with the sale of the property closing on July 31, 2010. The REALTOR'S® commission becomes due at that time. In this case, 2/3 of the services were performed from May 1, 2010 to June 30, 2010 and 1/3 of the services were performed from July 1, 2010 to July 31, 2010. The REALTOR® will charge GST on 2/3 of the amount charged for the services and HST on the remaining 1/3.

Property Transfer Tax
When a residence is purchased a Property Transfer Tax (PTT) is applied. For more information please visit: www.rev.gov.bc.ca/rpt/ptt/ptt.htm

Prepaid property taxes or utility bills
You will have to reimburse the sellers for any prepaid property taxes or utilities.

Mortgage loan insurance and application fee
If you get a high-ratio mortgage (a mortgage where you pay less than a 20% down payment) you will have to buy mortgage loan insurance from CMHC or a private company.

Appraisal
Before your lender approves your mortgage, you may be required to have an appraisal done. Sometimes your lender covers this cost otherwise you are responsible for covering this cost. The fee ranges from $299 to $350.

Survey fee
Your lender may require an up-to-date survey of the property. If the seller did not provide you with one, you will have to pay to have one done. The fee ranges from $150 to $350.

Home Inspection fee
Most Realtor's® recommend that you get a home inspection by a certified home inspector. It will cost you about $420 for a small house. Large houses may cost more.

Legal fees
Lawyers/Notaries fees for closing the sale range according to the complexity of the deal but they will probably be at least $900. This fee may increase if a mortgage is need as well.

Disbursements to Land Titles Office
These fees are approximately $300. Your lawyer/notary will arrange this payment and you should ask as to whether these fees are included in his estimate.

Seller's Information Guide
Offers to Purchase
An interested buyer will prepare a written offer, usually on a standard form called the Contract of Purchase and Sale. Your Realtor® must present you with all written offers and if you receive several at one time, you are under no obligation to accept one over the other. When you receive an offer, you can accept it, refuse it, or make a counter-offer to the buyers, with the changes you want. An offer usually contains subject clauses that the buyer needs to remove by a specific date. A subject clause is a special condition that must be met before the sale can take place. For example, a buyer may want to have a certified home inspection done before they commit to the sale. Once the subjects are removed and you've signed the offer, it becomes legally binding.

Completion
The Contract of Purchase and Sale will specify a completion day for the sale. On this day, legal ownership of the home will transfer from you to the buyer. Before the completion day you should hire a lawyer or notary public to handle the completion procedures. Your Realtor® will be able to recommend some lawyers or notaries. The lawyer/notary will: