What Happens To Deferred Property Taxes When a Home is Sold?
Before selling a home with deferred property taxes in BC, it is important to know exactly how and when the repayment is done. If your house is up for sale, you may continue to defer property taxes while your home is on the market prior to the sale. You will need to repay the full balance to finalize the sale of your property (meaning, before title can be transferred to the buyer). Once the full balance has been repaid, the lien that was placed on your property will be removed and the sale can go through. Typically, the repayment will occur at closing, using the funds from the sale.
If you are repaying your tax deferment loan outside of a property sale, you can make repayments in full or in part at any time during the year. This payment can be made:
- By pre-authorized debit through eTaxBC
- Online, through your online banking
- At a Service BC centre
- By mail
- By a lawyer, notary, or other party
When your tax deferment loan has been fully paid off, your account will be closed and if you would like to defer taxes again in the future, a new application will be required. See the full details of the repayment process here. If you are looking for clarification or guidance on your property tax deferral situation, please contact us; we are always here to help.
