Most of our out-of-town clients are referred to us when buying or selling BC real property. Naturally, it is most essential that your legal representative here be someone in whom you will have trust and confidence. It is to your further advantage, however, if your BC representative is also well versed in overcoming time and distance barriers through the appropriate use of technology. In this respect, we take particular pride in our remote client services.

If you are new to BC real property transactions, we recommend that you begin with a look at the General Information found on our Property Transfers page. Then below you will find Distance Client Specific Information which will be of particular interest to those not physically located here. If you have a question that has not been addressed here, we encourage you to ask it. Should you require a more immediate or transaction-specific response, however, please do not hesitate to involve your real estate professional or contact us directly.

If I cannot attend at my BC Notary's office to sign transaction documents in time for completion, what are my options?
If the transaction requires you to sign a document to be registered in the BC Land Title Office, it will need to be witnessed by a certifying officer such as a Notary Public. Transfers and mortgages are examples of registerable documents. You may either give Power of Attorney authorizing someone here to sign on your behalf (subject, if applicable, to your financial institution allowing execution of mortgage documentation by PA) or receive the transaction document package for execution abroad. In both cases you will attend before a Notary Public but individual circumstances and timing will determine which of the two options has greater merit for you. As a client, we would be pleased to help you assess a preferred course of action upon your contacting us.

If I must transfer funds into Canada to complete my purchase, what are my deadlines and options?
Our trust accounting regulations require that we must receive guaranteed Canadian funds not later than the morning of the completion date (though we recommend the day prior). This may take the form of a draft or wire transfer arranged through a recognized Canadian financial institution either directly by the client or through a foreign exchange agent. We recommend that our clients contact their preferred foreign exchange agent and/or financial institution to compare rates and options well in advance of closing to avoid potential complications or delays due to international banking technicalities. It is, after all, essential that the necessary funds be "liquid and local" in time to close. This article by Michael Barker-Fyfe of Custom House helps to illustrate some currency movement options.

As a non-resident of Canada, what additional procedures are involved when I dispose of an interest in Canadian real property?
A non-resident disposing of real property situated in Canada must notify Canada Revenue Agency ("CRA") as required in Section 116 of the Income Tax Act. Notification is made by preparation and submission of form T2062 and possily also T2062A. The Vendor may apply directly or with the assistance of an authorized agent, often an accountant. Upon remittance of any tax payable or upon satisfaction that none is payable, CRA will issue a Clearance Certificate which allows the purchaser to release the full amount of the sale proceeds to the vendor. For more detail, please refer to these articles written for The Scrivener magazine - "Real Estate and Non-Residents: Things You Should Know" and "Non-Resident Dispositions: Did You Report Your Rental Income?"

What if I have not received my Clearance Certificate from CRA before the completion date of my sale?
The purchaser is obligated to withhold part of the sale proceeds until the non-resident has obtained a Clearance Certificate. Depending on the use of the property, the amount to be withheld by the purchaser pending issuance of the Certificate is either a flat 25% of the price or calculated as 25% of the total proceeds allocated to the land and 50% percent of the total proceeds allocated to the building. It is generally in the best interest of the vendor(s) to file form T2062 as soon as possible once the contract of sale is firm and binding to mitigate the length of time sale proceeds are withheld. Under circumstances where the holdback would not leave sufficient funds to payout an existing mortgage at time of sale, a claim of hardship may be accepted to expedite significantly the usually 4-8 week CRA turnaround. In any event, we are available to liaise on behalf of our non-resident clients with their accountant and CRA and can, if so directed, place holdback funds at interest to their benefit. For more detail, please refer to my article for The Scrivener magazine entitled "Non-Resident Vendors: The Big Holdback" .