Tips for international purchasers and sellers

My experience in relocations to and from Canada, the United States and England has taught me valuable lessons I’d like to pass on to you. The following tips are not intended to be a comprehensive reference for those planning such a relocation. Hopefully they will raise some of the questions that need to be dealt with, and will provide some official sources that can be consulted.

International sellers planning to sell Canadian property may also find some of the following tips useful. This is especially true if there are belongings in the Canadian residence that you’d like to take to a foreign destination. The paperwork to sell the home can generally be dealt with remotely. Feel free to call me at 250 704-9026 with any specific questions regarding your situation.

Making the decision to purchase

Values and trends: One of the first questions you’ll want answered is what can you get for your money, and how much will it be worth in the future. There are many sources for such information. You can get a very quick current status from www.vi-realestate.com/area_news.html on this website. For more detailed background, you might want to get a free subscription to “Real Estate News – Victoria and the Saanich Peninsula”, available at www.vi-realestate.com/newsletter.php. There is a great deal of historical and current information at the Victoria Real Estate Board’s website at www.vreb.org.

Restrictions on property purchase: You do not need to be Canadian to purchase property in Canada. There are at least three categories of purchaser, one of which likely matches your position.

• Non-resident investment: You’ll need to consider taxation issues on the income earned on such property, as well as when the property changes hands either through sale or inheritance. You should consult the taxation authorities based on your current residence and/or citizenship, as well as the Canada Revenue Agency at www.cra-arc.gc.ca.
• Non-resident vacation: If you plan on occupying the home on a part time basis, in addition to the previous considerations you’ll need to be aware of circumstances under which you could be deemed liable to pay Canadian income tax. This currently applies to stays of six months or longer within a calendar year. You should consult the Canada Revenue Agency at www.cra-arc.gc.ca for more details.
• Planned permanent resident: If you plan to reside permanently in Canada, you should consult with Citizenship and Immigration Canada at www.cic.gc.ca to understand the requirements and the process. You may also want to consult with the officials of your current country of residence and/or citizenship.

Financing your Canadian purchase: Generally, mortgages on Canadian property will have to be provided by Canadian mortgage companies when the subject property is used as collateral. Another option you may want to consider by itself or in combination with a Canadian mortgage is to refinance your current foreign residence to provide funds for the Canadian purchase. For advice on this subject you should consult mortgage providers in your current country as well as in Canada, investment specialists for financial implications, and taxation specialists for possible tax implications. You can also call me at 250 704-9026 to discuss potential lenders.

Purchasing a home

Where are homes listed? The majority of homes for sale are listed on the MLS© (Multiple Listing Service) system by real estate agents. Individual REALTORS© have considerable independence in promoting and conducting their business, but must be associated with an agency, such as DFH Real Estate Ltd. REALTORS and their associated agency share the legal responsibility of ensuring that real estate transactions follow the rules laid out by various government and industry bodies to protect the public.

Doing a search: While you can do your own preliminary search directly through the MLS website (available under “MLS Search” on the left side of your screen), REALTOR’s have much more powerful search tools at their disposal and can better narrow the search based on a long list of search parameters.

Making the purchase: If you plan to buy a home in BC while still residing in another province or country, you’ll generally follow some version of the following process.

• Remote investigation of what is available in the area. This would usually be carried out by some combination of self-service MLS.ca searches, and remote discussions with a real estate agent.
• One or more trips to visit the area. This will help familiarize you with the area itself, and some specific available properties. During one of these trips you may decide to pursue one of the viewed properties.
• Purchasing the property remotely, using the services of a real estate agent and a lawyer or notary public. The entire process of purchasing a property can be carried out remotely by telephone, email and fax. Your next trip can be to collect the keys and take possession.

Possible issues to consider

Will your belongings function in Canada? In general, most appliances and electronic devices currently used in the US will work in Canada with no modification.

Items from the UK and other parts of Europe are much more likely to require modification or replacement. Those items cannot always operate on the 120 Volt, 60 cycle electrical grid now in use across Canada. Radios and televisions may not operate on the correct frequencies. Televisions, VCRs etc. do not follow the same technical standards as those in Canada and the US. You should consult with the manufacturer of the item in question to determine if it will operate in Canada.

Automobiles should not have trouble with Canadian fuel availability, whether diesel or gasoline. Propane is more difficult to find. You should note that right-hand-drive vehicles (e.g. as used in the UK) can be used on our roads, but must have their lights converted. See the following section for import regulations.

Regulations on importing your belongings into Canada: After you determine if your items will operate in Canada, you’ll need to comply with any regulations in your current country for export, or in Canada for import. Items that often come up include:

• Vehicles: Vehicles are subject to various regulations and inspections. You should consult with the Canadian Registrar of Imported Vehicles (RIV) at www.riv.ca for further details. You should also consult the vehicle registration authority at your current residence for possible export requirements.
• Firearms: Canada maintains tight restrictions on firearms. Even if you plan to import only air guns, check to make sure they don’t meet the official definition of a firearm. For detailed information, check with the Canada Border Services Agency at www.cbsa-asfc.gc.ca.
• Alcoholic beverages: While it is possible to import large quantities of alcoholic beverages into Canada, it is typically not economically viable and is of greatest interest to wine and other collectors. For further information consult the Canada Border Services Agency at www.cbsa-asfc.gc.ca.

Medical coverage: Canada’s medical coverage is quite extensive and relatively low cost compared to private coverage in some countries. For information on how to become eligible for coverage under the Medical Services Plan of B.C., check www.healthservices.gov.bc.ca/msp/.