If the owner is a Non Resident, a Clearance
Certificate from Revenue Canada (New Name - CCRA - Canada Customs & Revenue
Agency) has to be obtained.
The process to get a Clearance Certificate
can be outlined by your Lawyer or Notary Public. Depending on the circumstance,
the normal fee that is charged to get this Clearance Certificate is approximately
$500. It involves an accountant that the Lawyer or Notary selects to file an income
tax return on behalf of the individual.
The Clearance Certificate outlines to CCRA
that there are no outstanding Tax issues with the property.
This is especially important when there is
a profit or Capitol Gain after the sale occurs.
In the event the Clearance Certificate cannot
be obtained by the closing date, the holdback by the Notary or Lawyer will be
anywhere between 33% - 50% of the sale price. This holdback can cause a problem
in the event there are not enough funds after paying off the mortgage. The normal
time frame to process a Clearance Certificate is between 6-8 weeks.
Please call Reg Chow of Jack Chow Insurance
& Notary Services at 604-669-7777 or email him at reg@jackchow.com for more
information about Clearance Certificates. Reg has a really good system in place
to process these certificates. An alternate contact for processing the Clearance
Certificates is Donald Lum – Chartered Accountant. You can reach him at
604-738-8299 (office) 604-738-8296 (fax) dlum@axion.net (email)
There are no restrictions on non-residents purchasing property in British Columbia.
There is no citizenship requirement to own land in B.C. There are restrictions
on how much time may be spent in B.C. each year as a non-resident property owner.
There are also income tax considerations to be aware of when a non-resident rents
out a property or sells a property in British Columbia.
