Glossary
Canonical definitions of 38 BC real estate legal, tax, regulatory, and transaction terms. Every entry is verified against a primary government, regulator, or industry-association source. Last full re-verification cycle: May 2026.
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B
B-20 Same-Lender Renewal Stress Test Exemption
Same-lender renewal exemption · B-20 renewal exemption · Renewal stress test waiver
OSFI rule effective November 21, 2024 letting federally-regulated lenders renew an existing uninsured mortgage with the same lender without re-applying the B-20 stress test, even when the borrower would no longer qualify under current rules.
BC Annual Rent Cap
BC rent cap · Annual allowable rent increase
The maximum allowable annual rent increase for existing BC tenancies, set yearly by the Residential Tenancy Branch — 2.3% for the 2026 calendar year.
BC Foreign Buyer Additional PTT
Foreign Buyer Tax · Additional PTT · FBT
A 20% additional Property Transfer Tax payable by foreign nationals, foreign corporations, and taxable trustees buying residential property in five specified BC regional districts.
BC Foreign Buyer Additional PTT — Specified Areas
Specified areas · Additional PTT regions
The 5 BC regional districts where the 20% Foreign Buyer Additional Property Transfer Tax applies: Metro Vancouver, Capital, Fraser Valley, Nanaimo, and Central Okanagan.
BC Home Flipping Tax
Flipping tax · BC flipping tax · Anti-flipping tax
A provincial tax on profit from residential property sales held under 730 days, effective January 1, 2025 — 20% if held under 365 days, phasing linearly to 0% over days 366-729.
BC MLS Rules of Cooperation
MLS Cooperation Rules · MLS Rules · Cooperation Rule
The BC framework — Real Estate Services Rules (BC Reg 209/2021) plus BCFSA Standards of Conduct — that governs how listings are shared via member-board MLS systems and requires single-agent designated agency in place of dual agency.
BC Speculation and Vacancy Tax
SVT · BC SVT · Speculation Tax
An annual BC tax on residential property held in specified urban areas not used as a principal residence or rented at least 6 months — rates double for the 2026 tax year to 1% (Cdn citizens / PRs) and 3% (foreign owners + satellite families).
Bill 44 (2022) — Strata Reform
Building and Strata Statutes Amendment Act 2022 · Bill 44 strata
BC legislation effective November 24, 2022 that voided all strata rental-restriction bylaws and limited strata age-restriction bylaws to 55+ only.
Bill 44 (2023) — SSMUH
Small-Scale Multi-Unit Housing · SSMUH · Housing Statutes (Residential Development) Amendment Act
BC housing legislation requiring most municipalities to permit 3-4 units on lots zoned for single-family/duplex and up to 6 units near frequent transit, with most municipalities adopting bylaws by the June 30, 2024 statutory deadline.
Builders Lien (BC Builders Lien Act)
Builders' Lien Act · Construction Lien · BC Builders Lien
A statutory charge under the BC Builders Lien Act (SBC 1997, c. 45) that contractors, sub-trades, workers, and material suppliers can register against a property's title for unpaid work, with a 45-day filing window and a 10% holdback requirement.
C
Capital Gains × Principal Residence Exemption (PRE)
Principal Residence Exemption · PRE · T2091
How the federal Principal Residence Exemption interacts with the 50% capital-gains inclusion rate for BC sellers — only one property per family per year can be designated, and PRE never auto-applies; every principal-residence disposition since 2016 must be reported on Schedule 3 with Form T2091(IND).
Capital Gains Inclusion Rate
Capital gains tax inclusion rate · 50% inclusion
The proportion of a capital gain included in taxable income — currently 50% federally; the 2024 proposal to raise the rate to 66.67% on gains over $250,000 was cancelled on March 21, 2025.
Capitalization Rate (Cap Rate)
Cap rate · Capitalization rate · Yield on cost
An investor-side property valuation metric defined as Net Operating Income divided by purchase price (or current market value) — the unlevered annual yield a buyer earns on rental property before financing.
CMHC Default Insurance Cap
CMHC cap · Mortgage insurance cap
The maximum home purchase price eligible for CMHC default mortgage insurance — raised from $1,000,000 to $1,500,000 effective December 15, 2024.
D
Debt Service Coverage Ratio (DSCR)
DSCR · Debt coverage ratio · Income coverage ratio
An investor-side mortgage underwriting ratio measuring net operating income against annual debt service — DSCR ≥ 1.10–1.20 is a common lender-policy threshold for rental-property and small-commercial financing in BC.
Depreciation Report
Strata depreciation report · 5-year reserve study
A 5-year reserve study mandatory for BC strata corporations of 5+ residential units, identifying common property components and projected replacement costs.
Designated Agency
BC designated agency · Single-agent designated agency
BC's real estate agency model since June 15, 2018: the agency relationship is between the client and the individual licensee, not the brokerage; dual agency is prohibited except in narrow remote-market exceptions.
F
Federal Anti-Flipping Rule
Anti-flipping rule · Property flipping deemed business income
A federal rule (effective January 1, 2023) deeming residential property sales held less than 365 days to be 100%-included business income, with no Principal Residence Exemption available, unless a qualifying life-event applies.
Federal Foreign Buyer Ban
Prohibition on the Purchase of Residential Property by Non-Canadians Act · Foreign Buyer Ban · Federal Ban
Federal legislation prohibiting most non-Canadians from purchasing residential property in Census Metropolitan Areas, in force through January 1, 2027.
Federal Foreign Buyer Ban — Exemption Categories
Foreign buyer ban exemptions · Non-Canadian exemptions
The 7 categories of non-Canadian persons exempted from the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act.
First Home Savings Account
FHSA · First Home Savings Account
A federal tax-deferred savings vehicle for first-time home buyers — $8,000 annual contribution room, $40,000 lifetime maximum, contributions tax-deductible like RRSP, qualifying withdrawals tax-free like TFSA.
First Time Home Buyers' PTT Exemption
FTHB exemption · FTHB · First Time Home Buyer exemption
A BC Property Transfer Tax exemption for qualifying first-time home buyers — full exemption to $500,000 fair market value, fixed $8,000 reduction $500,000–$835,000, linear phase-out $835,000–$860,000.
Form B Information Certificate
Form B · Strata Form B · Information Certificate
A statutory information certificate issued by a BC strata corporation for a strata-lot sale, capped at $35 (Form B itself) under s. 4.4 of the Strata Property Regulation (BC Reg 43/2000).
G
H
Home Buyer Rescission Period
HBRP · 3-day rescission · Cooling-off period
A statutory 3-business-day cooling-off period during which a buyer of BC residential real property may rescind an accepted offer, subject to a 0.25% rescission fee.
Home Buyers' Plan
HBP · RRSP HBP · Home Buyers Plan
A federal program allowing first-time home buyers to withdraw up to $60,000 tax-free from RRSPs to purchase a home, repaid over 15 years.
M
N
Net Operating Income (NOI)
NOI · Net rental income · Operating income
An investor-side income measure: gross rental income less vacancy allowance and operating expenses (property tax, insurance, maintenance, management, utilities) — but BEFORE mortgage interest, depreciation, and capital expenditures.
Newly Built Home PTT Exemption
Newly Built Home exemption · NBH exemption
A BC Property Transfer Tax exemption for newly constructed homes with FMV at or under $1,100,000, with linear phase-out to $1,150,000.
O
P
Presale Condo Assignment Tax Treatment
Presale Assignment · Assignment Sale · Assigning a Presale
The federal + BC tax treatment of selling a presale-condo purchase contract before completion — 5% GST on the assignment fee since May 7, 2022, plus CRA's default treatment of the profit as 100%-included business income.
Property Disclosure Statement
PDS · BCREA Property Disclosure Statement · PDS form
A BCREA standard form completed by the seller disclosing known facts about the property to the buyer's knowledge. Not statutorily required in BC, but standard MLS practice.
Property Transfer Tax
PTT · BC PTT · Land Transfer Tax
A provincial tax payable to the Province of British Columbia on the registered fair market value of any residential property title transfer, calculated using marginal-rate brackets.
R
S
T
Total Debt Service Ratio (TDS)
TDS · TDS ratio · Total debt service
A federal mortgage qualification ratio measuring all annualized debt obligations (housing costs plus car loans, credit cards, lines of credit, student loans) against gross household income — generally capped at 44% under OSFI Guideline B-20 lender practice.
Transit-Oriented Development Areas (Bill 47)
TOD Areas · Bill 47 · TOD Zoning
BC legislation (Bill 47, in force December 7, 2023) designating transit hubs as Transit-Oriented Development Areas where municipalities must permit minimum density and height in tiered distance bands — up to 5.0 FAR / 20 storeys within 200m of a SkyTrain station.