What is family in real estate?

This Family Day, take a minute to brush up on the meaning of "Family" in real estate.

Author

Eli Zbar
February 17, 2024

In honour of Family Day long weekend, this month’s newsletter is all about the different meanings of “family” across real estate.

I often hear clients talk about plans for their “family”, for example, claiming the Property Transfer Tax exemption for transfers to “family” or evicting tenants so that “family” can move in on possession day.

Protect yourself from liability - don’t give your clients the wrong advice.

Consider the following:

  1. Grandparents can add their grandchild to the title of their primary residence without PTT, but could not evict their basement tenant to have the grandchild move in, because grandchildren are not “close family” under the Residential Tenancy Act.  

  2. Do you know who counts as your “family” under the Real Estate Services Rules? Specific disclosure rules apply when providing services to family for property management, and transactions.

  3. A realtor faced a $36,000 insurance claim after they advised a buyer that siblings counted as family under the Residential Tenancy Act. The client closed on the property, evicted the tenant, and was liable for a penalty equal to 12 months rent, at $3,000 per month.

(Note: the below definitions are paraphrased for readability)

Residential Tenancy Act, SBC 2002, c 78

➡️"close family member" means a person’s parent, spouse or child, or the parent or child of that individual's spouse.

Property Transfer Tax Act, RSBC 1996, c 378

➡️"related individual" means a person's spouse, child, grandchild, greatgrandchild, parent, grandparent or great grandparent; the spouse of a person's child, grandchild or greatgrandchild, or the child, parent, grandparent or great grandparent of a person's spouse;

Home Owner Grant Act, RSBC 1996, c 194

➡️"relative" means (except as set out in specific sections) a person's child, grandchild, parent or sibling.

Real Estate Services Rules, BC Reg 209/2021

➡️licensee's spouse, family partner, child or parent… and "family partner" means a person who is living and cohabiting with a licensee in a marriage-like relationship, including a marriage-like relationship between persons of the same gender.

More info: 

Did You Know?

I offer real estate agents and mortgage brokers complimentary short phone consultations. Message me on WhatsApp, or book a call.

We are super transparent about pricing, check out our app at www.pricemyconveyance.com - it calculates property transfer tax, too!

Contrary to what people think, a lawyer is not more expensive than a notary. Remember that all lawyers are notaries, but notaries are not lawyers. In my experience, most notaries refer clients to a lawyer as soon as there’s a problem with a deal. Why not start with a lawyer?

A reminder that Arora Zbar LLP has 3 lawyers offering services in real estate transactions, corporate law, commercial litigation, tenancy/strata disputes, and estate planning.

Sincerely,

Eli Zbar

Lawyer