Frequently Asked Questions
Can the Osoyoos Indian Band or Developer change the terms of the lease?
The Developer has signed a 99-year head lease with the Federal Government of Canada. The Osoyoos Indian Band is not a party to the head lease or sublease. Your sublease is between you and the Developer and there is no mechanism in the lease for the Developer to unilaterally change any term of the sublease.
Will I have to pay GST or Property Transfer Tax?
Your home or cottage will not be subject to GST or the provincial Property Transfer Tax, saving you tens of thousands of dollars. On a $500,000 home these savings amount to $33,000. Download Tax opinion memo for more detailed information.
What other communities are under a lease arrangement?
Land leases are common in many parts of Canada, Florida, Europe, and southwest U.S.A. Here are just a few examples of successful leased land projects in BC:
|Aria (a Van Maren Project)||West Kelowna|
|Huntsfield Green||West Kelowna|
|Halcyon Meadows (a Van Maren Project)||Chilliwack|
|Clover Creek (a Van Maren Project)||Chilliwack|
|University of British Columbia||Vancouver|
|Simon Fraser University||Burnaby|
|Raven Woods||North Vancouver|
Will financial institutions provide financing for The Cottages?
We have recently obtained approval for mortgage insurance from Canada Mortgage and Housing Corporation (CMHC). This means that a wide range of lenders will be willing to provide mortgage financing.
What about re-sale value?
The resale of homes on leased land typically reflect the local real estate market conditions, going up in price at a rate comparable to similar homes in the area.
Is my Leasehold Interest secure?
Yes, the lease is registered in Ottawa in the Federal Land Registry System.
What if I’m still concerned about the security of the Lease?
The developer has arranged, and will pay for, title insurance for all buyers and their lenders. This policy covers you for a wide range of title-related risks.
Can I sell my 99-year lease?
Yes, you can sell the remaining term of your 99-year sub-lease.
How are Property Taxes levied?
Your property will be assessed by the BC Assessment Authority, just like all freehold property in BC. The assessment will be based on fair-market value and you will be able to appeal the assessment if you feel it is too high. The mill-rate and taxes you pay will be comparable with the Town of Oliver. If this is your primary residence you will be eligible for the Provincial Homeowners’ Grant.
Has a third-party lawyer looked at all these documents?
The developer asked Barry Porrelli, a lawyer with extensive experience in leased-land transactions to review all the documents. Mr. Porrelli is prepared to give legal advice to purchasers. His letter can be downloaded below.