Selling a home in BC: listing, commission, taxes and completion

The listing agreement

Before the listing agreement, the REALTOR® signs a Disclosure of Representation in Trading Services with you, which sets out that they represent you and what duties they owe you.

The listing agreement must state the parties, the property address, the start and end dates, the services, the commission and when it is payable, any share for a cooperating brokerage, and how your personal information is used.

An exclusive listing gives one brokerage the sole right to sell, and you generally owe the commission even if you find the buyer yourself, unless the agreement excludes it. An MLS listing is a form of exclusive listing that goes on the MLS System, with the commission shared with the buyer's brokerage. Many terms are negotiable, but changing some required terms means the home cannot go on MLS.

Commission: negotiable, and GST applies

The commission is negotiated between you, the REALTOR® and the brokerage. It can be a percentage, a flat amount or a monthly fee, but it cannot be based on the difference between the list price and the sale price. With every offer you receive a Disclosure to Sellers of Expected Remuneration, showing what you would pay in dollars.

GST at 5% is added to the commission: a resale home itself is exempt from GST, but a REALTOR®'s services are taxable.

Offers: you see every one

Your REALTOR® must tell you about every offer submitted on your home. You can take offers at any time or set an offer date; changing anything in an offer makes it a counter-offer. With multiple offers, all written offers are presented to you and you are told how many there are, and one buyer's terms cannot be shared with another buyer without your prior consent.

After acceptance, the buyer has a 3-business-day rescission period. If the buyer rescinds, you receive 0.25% of the price; if a brokerage holds the deposit, it pays that amount to you. The fee cannot be changed by agreement.

What you must disclose

BC has no prescribed disclosure form; a Property Disclosure Statement is a common way to disclose, not a requirement. But known material latent defects — hidden defects that make the home dangerous, unfit to live in, or unfit for the buyer's purpose — must be disclosed to a buyer before a contract is signed. Your REALTOR® must also disclose defects they know of, and cannot keep acting for you if you refuse.

Selling a strata unit: buyers will ask for the Form B Information Certificate, and at completion the Land Title Office requires a Form F Certificate of Payment showing you owe the strata nothing. The strata provides it within 7 days of a request, and a Form F costs no more than $15.

Taxes on a sale: reporting your principal residence, and two flipping rules

When you sell your principal residence, you report the sale on Schedule 3 of your return and designate the years on Form T2091; if you do not report it, you may lose the exemption. The penalty for a late designation is the lesser of $8,000 and $100 for each complete month. The gain is fully exempt only if the home was solely your principal residence for every year you owned it.

The federal flipping rule: a gain on a home held for less than 365 consecutive days is taxed as business income rather than as a capital gain (sales from January 1, 2023), unless a listed life event applies.

BC home flipping tax: since January 1, 2025, a profit on BC residential property held for less than 730 days is taxed at 20% within 365 days, falling to zero at 730 days, and a return is due within 90 days of the sale. Life events such as death, separation or a job relocation can exempt you, but you still file a return.

I am not an accountant. Before we set the price, bring your accountant in to work out what you keep after tax.

If you are a non-resident

A seller who is a non-resident of Canada for tax purposes must notify the Canada Revenue Agency on Form T2062 within 10 days of the sale and apply for a clearance certificate. Without one, the buyer is entitled to withhold 25% of the proceeds (50% for certain property) and remit it to the CRA. If you are a non-resident, put this step into the timeline with your accountant before you list.

How I work on a sale

Before listing: price against recent sales in the area; for a strata unit, have the Form B, depreciation report and minutes ready so buyers' questions are answered early; and if you still have a mortgage, ask your lender what the prepayment penalty will be.

Selling and buying: I plan both completion dates and how the money bridges between them, the property and the financing together.

If I act on both the property and the financing, I tell you in writing, before you sign anything, which role I am in and how I am paid in each. More on the REALTOR® service page.

Common questions

Are REALTOR® commissions negotiable in BC?

Yes. The commission can be a percentage, a flat amount or a monthly fee, negotiated with the REALTOR® and the brokerage; it just cannot be based on the difference between the list and sale prices. Every offer comes with a disclosure showing the commission in dollars.

Is GST charged on the commission when I sell a resale home?

Yes, at 5%. The sale of a resale home is exempt from GST, but a REALTOR®'s services are taxable.

What does the seller get if the buyer rescinds during the 3-day period?

0.25% of the price, which is $2,500 on a $1 million home. If a brokerage holds the deposit, it pays that amount to you, and the fee cannot be changed by agreement.

Do I have to report the sale of my principal residence?

Yes. Report it on Schedule 3 and designate the years on Form T2091. If you do not, you may lose the exemption; a late designation costs the lesser of $8,000 and $100 for each complete month.

Does BC's home flipping tax apply if I sell within two years?

If you held the home for less than 730 days: 20% within 365 days, falling to zero at 730 days, with a return due within 90 days of the sale. Life events can exempt you, but you still file.

How much does a buyer withhold when a non-resident sells in BC?

The seller must notify the CRA on Form T2062 within 10 days of the sale. Without a clearance certificate, the buyer is entitled to withhold 25% of the proceeds (50% for certain property) and remit it to the CRA.