Are Canadian Manufactured Home Parks Great Opportunities for American Investors?

This is an often asked question and the simple answer is yes. US nationals and other foreigners face no restrictions when buying property in Canada.

The process for purchasing property in British Columbia (BC) is a bit different from buying property in the US and other Provinces of Canada. BC has one of the toughest real estate laws in Canada, if not North America, to protect purchasers and land title holders. The law includes strict licensing requirements for brokers and the sales representatives they may employ.

To purchase a listed property ask a BC Realtor (most US and other Canadian Realtors are not familiar with BC real estate law) to write an offer to purchase. This will have all the terms and conditions that you would like to have regarding the purchase (when do you want the transaction to be completed, how much do you offer to pay and when do you want to make the usual 10 % deposit and what non-real estate items do you want included in the transaction etc).

The Realtor will use a form called Contract of Purchase and Sale to write the offer. You sign this form and should the seller be in agreement with your offer he/she signs the acceptance. This makes it a binding contract for both parties.

If the seller is not in agreement with your terms the seller may come back with a counter offer (which you may accept or not) or drop the offer (not respond).

If the seller and buyer agree and have a signed contract of purchase and sale the transaction is turned over to a lawyer or notary public of the buyers choice and the seller requires a lawyer or notary also.

The deposit is paid into trust of the Realtor and balance needed to close is paid into trust of the conveyancer. All funds are in control of the conveyancer who will pay out only after the title is transferred to the new owner. Once the pay outs have been made, possession of the property goes to the buyer. If a BC lawyer or notary is used for a BC property transaction the transfer of title and the pay out of funds happen within the same hour. All transactions are computerized and we no longer have title books where you can see your entry on a certain page. We use British law and your title is totally guaranteed to be yours when it is registered in your name. You get notification from the lawyer or notary.

When you purchase a property in BC the government of BC collects a property transfer tax of 1% on the first $200,000.00 and 2% on the remainder. Exempt are only first time buyers of primary residences.

The above procedures are the same for anybody buying property in BC.

All properties are assessed by the government assessment authority for yearly land tax purposes. Location, size, quality of property and buildings and other factors are considered for assessment. Who owns the property is not considered. The property tax is based on assessment and different regions in the Province have different tax rates that may also change from year to year. Residents and non-residents pay the same rate. Only residents living most of the year on the property and use it as primary residence get tax breaks. How much of the break depends on the value of the property and the age of the owner.

When you sell you must pay a tax on the profit you make. The conveyancer must hold back on third of the sale price to cover the capital gains tax. An accountant will determine the tax payable and the remainder of the holdback will be paid to you after the tax is computed and collected. You may avoid the holdback by allowing enough time for the conveyancer to apply for and receive a tax clearance certificate. Any costs connected with the purchase of the property are deductible from the profile.