A B C D F H N P S T

A

Additional Property Transfer Tax
A 20% tax that foreign nationals pay on top of the regular Property Transfer Tax when buying residential property in designated BC regions, including Metro Vancouver and parts of the Fraser Valley. It doesn't apply to Canadian citizens or permanent residents.
Agricultural Land Reserve (ALR)
Provincially protected farmland where agriculture is the priority use. ALR land has strict limits on subdivision, non-farm uses, and the size and number of homes, regulated by the Agricultural Land Commission. More on ALR land.
Assessed value
BC Assessment's estimate of a property's market value, used to calculate property taxes. It's a mass appraisal based on a past valuation date, so it often differs from what a home would sell for today.
Assignment
Selling your contract to buy a property, usually a presale condo or townhome, to another buyer before the purchase completes. Most developers must approve an assignment and many charge a fee, so check the contract terms first.

B

Bare land strata
A strata where owners own their land and the home on it, while roads, landscaping, and other common areas are shared and managed by the strata corporation. Common in newer detached and townhome communities.
Benchmark price
The price of a typical home with common features in a given area, from the MLS® Home Price Index. It tracks price trends more reliably than average prices, which a few expensive sales can skew. Current benchmarks.

C

Cap rate (capitalization rate)
A property's net operating income divided by its price. A $1,000,000 building earning $50,000 a year after operating expenses has a 5% cap rate. Investors use it to compare income properties.
CMHC mortgage insurance
Mortgage default insurance required when you put down less than 20%. The premium is added to your mortgage rather than paid up front. CMHC is the main insurer; private insurers offer the same coverage.
Common property
The parts of a strata owned collectively by all owners, such as hallways, roofs, grounds, and amenities. Limited common property is common property set aside for one owner's use, like a parking stall or balcony.
Completion, possession, and adjustment dates
The three key dates in a BC purchase contract. Completion is when the money changes hands and ownership transfers; possession is when the buyer gets the keys, usually a day or so later; and the adjustment date is when property taxes and other costs are split between buyer and seller.
Contingency reserve fund (CRF)
A strata's savings account for major repairs and replacements, such as a new roof or elevator. A healthy CRF makes a special levy less likely.

D

Deposit
The money a buyer pays toward the purchase price once a deal is firm, held in trust by a brokerage or lawyer until completion. The contract sets the amount and due date.
Depreciation report
A professional study projecting a strata building's major repair and replacement costs over 30 years. It shows whether the contingency reserve fund is adequate or a special levy is likely.
Dual agency
One licensee representing both the buyer and the seller in the same deal. BC has largely prohibited it since 2018, so in most cases each side has its own representation.

F

FINTRAC identity verification
Federal anti-money-laundering rules require real estate professionals to verify their clients' identity and keep certain records. That's why your REALTOR® asks for government ID.
First Home Savings Account (FHSA)
A registered account for first-time buyers: contribute up to $8,000 a year, to a $40,000 lifetime maximum. Contributions are tax-deductible and qualifying withdrawals are tax-free. It can be combined with the Home Buyers' Plan.
First-time home buyers' exemption
A BC program that fully exempts eligible first-time buyers from Property Transfer Tax on homes valued up to $835,000, with a partial exemption up to $860,000.
Form B information certificate
A document from the strata corporation summarizing key facts about a unit: strata fees, any approved special levies, the contingency reserve balance, bylaw restrictions such as rentals or pets, and any legal action. Buyers should review it before removing subjects.
Freehold vs leasehold
Freehold means you own the land and building outright. Leasehold means you own the right to use a property for a fixed term on land someone else owns, often a government or First Nation. Lease length affects financing and resale value.

H

Home Buyer Rescission Period
In BC, buyers of most residential property can cancel an accepted offer within three business days, for a fee of 0.25% of the purchase price. It can't be waived.
Home Buyers' Plan (HBP)
Lets first-time buyers withdraw up to $60,000 from their RRSP tax-free toward a home, repayable over 15 years.
Home flipping tax
A BC tax on profits from selling a home within 730 days of buying it: up to 20% of the profit in the first year, sliding to zero at two years, with limited exemptions.

N

Net lease and triple net (NNN) lease
Commercial leases where the tenant pays some or all of the property's operating costs on top of base rent. In a triple net lease, the tenant pays property taxes, insurance, and maintenance. In a gross lease, the landlord covers them. More on retail leases.

P

Pre-approval
A lender's conditional commitment to lend up to a set amount at a held rate, based on a review of your income and credit. It's stronger than a pre-qualification, which is only an estimate.
Principal Residence Exemption
The federal rule that generally makes the gain on selling your home tax-free if it was your principal residence for the entire time you owned it.
Property Disclosure Statement (PDS)
A form where the seller describes what they know about the property's condition, such as leaks, renovations, and permits. It's based on the seller's knowledge, so it doesn't replace a home inspection.
Property Transfer Tax (PTT)
BC's tax on buying property, paid by the buyer at completion: 1% on the first $200,000, 2% on the portion up to $2 million, 3% above $2 million, and an additional 2% on residential property above $3 million. On an $800,000 home, that's $14,000.

S

Secondary suite (legal vs non-conforming)
A self-contained unit within a house. A legal suite is permitted and meets building code; a non-conforming or unpermitted one isn't registered with the city. That affects whether lenders count its rent and whether insurers will cover it.
Special levy
A one-time charge to strata owners when the strata needs more money than its reserve fund holds, usually for a major repair. Whoever owns the unit when the levy comes due pays it, unless the contract says otherwise.
Speculation and Vacancy Tax
An annual BC tax on residential property in designated areas that's left vacant or owned by certain non-residents. Most owners who live in their home or rent it out long-term are exempt but still must file a declaration.
Strata corporation
The legal entity made up of all owners in a strata development. It's run by an elected strata council, manages common property, sets fees, and enforces bylaws.
Strata fees
Monthly payments each strata owner makes to cover shared costs: building insurance, maintenance, management, and contributions to the contingency reserve fund.
Subjects and subject removal
Conditions written into an offer, such as financing, inspection, or strata document review, that must be satisfied before the deal is firm. Removing subjects makes the contract binding.

T

Tenant improvement (TI) allowance
Money a commercial landlord gives a tenant to build out or renovate a space, usually expressed per square foot and tied to the lease term.
Title search
A check of the BC Land Title Office record that confirms who owns a property and shows registered charges such as mortgages, liens, easements, and covenants.

Definitions are general information, not legal or tax advice, and program rules change. For common questions with fuller answers, see BC Real Estate Questions, Answered.