By Jared Gibbons – Top South Surrey Realtor
Transferring a principal residence in South Surrey or anywhere in British Columbia can be more affordable than you think—especially when the property is transferred between related individuals. Many people don’t realize they may qualify for a full or partial property transfer tax exemption under specific conditions. If you're navigating an inheritance, transferring property through a trust, or gifting a home to a family member, understanding these rules could save you thousands.
As a trusted South Surrey realtor, I often work with families looking to transfer property to children, settle estates, or inherit family homes—and proper guidance makes a big difference. Let’s break it down.
✅ What Qualifies as a Principal Residence in BC?
A principal residence is a property that:
Is classified as residential by BC Assessment
Is built for three families or fewer
Sits on land 0.5 hectares (1.24 acres) or less
Has been lived in by either the transferor or transferee as their main home
You can only have one principal residence at a time, and the transfer must be between related individuals for the property transfer tax exemption to apply.
💯 Full Property Transfer Tax Exemption
If you're a Canadian citizen or permanent resident, and you're receiving a principal residence from a related family member, you may qualify for a full exemption—no tax owed.
You qualify if:
The home has been a principal residence for at least six months before transfer
The transferor is not a trustee
You and the transferor are related individuals
To claim this, use on your tax return.
🏡 Transferring Through an Estate or Trust
If the principal residence is being transferred through a trustee or a deceased estate, you can still qualify for a full exemption, if:
The home was lived in by the deceased or the transferee for at least six months
The transferee is a beneficiary of the estate or trust
You are related to the deceased
Select based on the situation.
As a local South Surrey real estate expert, I can help guide families through estate-related transfers with care and clarity.
🧮 Partial Exemptions: When the Property Is Too Large or Mixed-Use
If your principal residence:
Is larger than 0.5 hectares
Or includes non-residential improvements (e.g., workshops, commercial units)
You may qualify for a partial exemption. The formula used subtracts the non-residential value and prorates the land over 0.5 hectares. This can significantly reduce the property transfer tax payable.
📊 Real-Life Examples
Here’s how a partial exemption works:
Example: You acquire a $700,000 property on 2 hectares. Only 0.5 hectares qualify for exemption, and the home improvements are valued at $200,000. Based on this, you could get a $6,500 exemption, reducing your tax bill to $5,500 instead of $12,000.
Estate example: A family home in South Surrey is passed down from a parent to their children. If the home was a principal residence and the criteria above are met, each recipient could claim a full or part exemption, depending on their share and relationship.
👨👩👧 Family Transfers in South Surrey Real Estate
As a top South Surrey realtor, I regularly help clients:
Transfer property between family members
Avoid unnecessary property transfer tax
Navigate trust and estate transfers
Buy family homes with tax-smart strategies
Whether you're passing down the family home or acquiring it through inheritance or a trust, it’s important to work with a real estate expert familiar with BC’s Property Transfer Tax Act.
💬 Final Thoughts: Avoiding Property Transfer Tax the Right Way
Understanding how to transfer your principal residence in South Surrey (or anywhere in BC) without triggering tax is key to protecting family wealth. If you’re considering passing on a home, navigating an estate, or receiving property through a trust, reach out to me directly.
I'm Jared Gibbons, your go-to South Surrey realtor, here to help you make informed decisions and avoid costly mistakes in real estate.
📞 Contact Jared Gibbons – Top 1% South Surrey Realtor
🌐 www.jaredgibbons.ca
📍 Helping families with property transfer tax exemptions, estate sales, and real estate in South Surrey & beyond.