PPT questions -- please help!

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PPT questions -- please help!

Postby WCLease » Thu Jun 21, 2012 10:03 am

This is bit complicated, but let me see if I can explain properly.
We need to do a change of title on principle residence but what the notary said to me isn't making sense.
Currently on title is
1/3 father
1/3 mother
1/3 son #1
We want the new title to be
1/2 father
1/2 son #2

My understanding is that transfer between parents and child are exempt from PPT.
The problem is the house on the property was recently knocked down.
The notary is saying that because no one is living there, it's not considered a primary residence and doesn't qualify for exemption.
However, when I read the literature, it says as long as the property was lived in for a continuous period of 6 months, it's considered primary residence. We have been living in the property for the past 20 years until just recently.
Is she giving us the correct advice? Should I go to a different notary?
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Re: PPT questions -- please help!

Postby gse36 » Thu Jun 21, 2012 10:22 am

http://www.sbr.gov.bc.ca/documents_libr ... eBuyer.pdf

I believe says "the home will be used for your primary residence".

"will be" is different than "has-been". i presume it means going forward (post transfer), you plan on using the home as PR.

i noticed this clause "If you purchase an existing home, you must move into the home within 92 days of the date you register title to the property."

so i guess if house will be built within 92 days you're okay?
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Re: PPT questions -- please help!

Postby WCLease » Thu Jun 21, 2012 10:35 am

What happened is that we originally planned to finance the construction ourselves.
We moved out a month ago and the house is already knocked down.
Currently they are working on the foundation.
However, due to some other issues I don't want to get into, we now have to get a line of credit to complete the construction.
The bank requires myself to be on title because only I have the income to support the line of credit.
I expect the construction will take another six months or so.
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Re: PPT questions -- please help!

Postby MultipleOffer » Thu Jun 21, 2012 7:33 pm

go to a new notary and don't tell them the house was taken down. they will do the transfer for you, and you will be on the hook only if PPT finds out the house got torn down. How would they know? The risk is yours. otherwise you are paying PTT. if there is an existing mortgage, you might have trouble too.

a more legit way would be to get son #2 on title for 1% interest so the PTT is almost nothing... the bank would probably prefer that as there are 4 people now to go after instead of just 1.
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