A Few Timely Reminders!

Written by Janet Helm, Realtor® and Seniors Real Estate Specialist (SRES®) 

As July 2 approaches, property taxes come due, and the Home Owner Grant (HOG) must be claimed if eligible. These small yet important steps are often missed when families are focused on more immediate responsibilities, especially when preparing a home for sale or managing affairs. When helping a parent with their affairs or preparing a home for sale, most people focus on the obvious tasks such as legal paperwork, decluttering, and arranging the sale. However, there are several practical items that are frequently overlooked and can have financial implications if missed.

One of the first is the Home Owners Grant. (HOG) and the additional Additional Senior Grant! Depending on the circumstances, the grant may still be available and is worth confirming has been claimed. For many seniors in British Columbia, the additional senior grant can provide meaningful savings on annual property taxes.

Property taxes themselves require careful attention. Many older adults choose to defer their property taxes through the provincial deferment program. Note it is not a grant, it is a loan program. Recent substantial changes have been made to the program, so it now requires a much closer look before continuing or applying. While this can be a valuable tool, it is important to understand that deferred taxes are not written off. It is also important to understand that what once made sense may not always be the best choice today. Changes in interest rates, financial circumstances, and estate planning goals can all affect whether tax deferment remains appropriate. Before continuing or applying for a deferment, it is wise to review the decision with a financial advisor to ensure it still aligns with the broader financial picture.

If the home becomes vacant, utilities should generally remain active. Electricity, heating, and water services are often necessary to protect the property and meet insurance requirements. Most standard homeowner policies contain restrictions once a property becomes vacant. If no one is living in the home, contact the insurance company to discuss vacancy coverage requirements. In many cases, the insurer will require a vacant home policy and may request that the water be turned off while the property is unoccupied and frequent visits.

Families are often concerned about paying a full year's property taxes when they expect to sell the home. If the annual property taxes have already been paid and the property sells partway through the year, the buyer reimburses the seller for the portion covering the period after completion. This adjustment is handled by the lawyer or notary during conveyancing and forms part of the normal closing process.

Remembering these practical considerations early can help prevent unexpected expenses and reduce stress during an already busy time.