Selling Land In New Brunswick: A Guide

If you're looking to sell land in New Brunswick, there are a few things to keep in mind. Firstly, it's important to determine your asking price and whether you need to make a large upfront cash payment. You should also consider the size of the land you're selling and whether it's suitable for building on or will be of interest to investors. It's also worth noting that New Brunswick has a blend of climates typical of a coastal area and an inland province, which may be of interest to potential buyers.

How to sell land in New Brunswick: legal requirements

The legal requirements for selling land in New Brunswick, Canada, involve several steps and considerations to ensure a smooth transaction. Here is a comprehensive guide to help you navigate the process:

Understand the Land Registry System:

• The Land Registry in New Brunswick facilitates land-based transactions and maintains records of land ownership, restrictions, and obligations. It provides answers to essential questions such as the location of the land, ownership, and any charges or encumbrances against it.
• The Provincial Land Registration Office is located at 41 King Street, St. Stephen, New Brunswick, and operates from 9:00 am to 5:00 pm, Monday to Friday.
• Instruments for registration can be submitted by mail or in person during specific hours, and they must be properly executed with the necessary documents and approvals.

Convert Land to the Land Titles System:

• While it is not mandatory to convert your land to the Land Titles system, conversion is required if you are mortgaging or selling your land.
• The Land Titles system is a parcel-based registration system that uses a Parcel Identifier (PID) to uniquely identify parcels of land and record interests.
• To convert your land, a lawyer must conduct a final search of the title in the Registry of Deeds and provide that information to Service New Brunswick, along with the Certificate of Title.

Engage a Lawyer:

• Engaging a lawyer is essential for handling the legal aspects of the land sale. They will review all relevant documents, conduct title searches, and ensure compliance with legal requirements.
• The lawyer will need specific documents from the seller to open a real estate file, including identification documents such as a driver's license, birth certificate, or passport.
• Additionally, the lawyer must comply with the New Brunswick Naming Conventions Regulation, which requires individuals involved in the transaction to be identified by specific records, depending on their place of birth or citizenship.

Prepare the Standard Form Purchase and Sale Agreement:

• Filling out the standard form purchase and sale agreement is a critical step as it forms a legally binding contract between the buyer and the seller.
• Precision and clarity are crucial to avoid ambiguity and potential disputes. The agreement should accurately describe the deal, including what is included in the sale and the timing of obligations.

Understand Closing Costs:

• In addition to the purchase price and any mortgage, there are closing costs associated with the real estate transaction. These costs vary depending on the purchase price, the property, and the buyer's choices.
• Closing costs may include the land transfer tax, Service New Brunswick Registration of Transfer and Mortgage fees, Real Property Tax Certificate, Certificate of Registered Ownership or title search, Water and Sewer Certificate, and Title Insurance or survey.

Be Aware of Legal Differences:

• It is important to note that there are legal differences between residential and commercial real estate transactions in New Brunswick.
• Commercial real estate deals are typically larger in price and complexity, and the legal considerations are generally more intricate than those in residential transactions.

By following these steps and working closely with legal professionals, you can ensure that you meet the legal requirements for selling land in New Brunswick.

Selling land in New Brunswick: taxes and fees

When selling land in New Brunswick, there are a number of taxes and fees to be aware of. Here is an overview of the key considerations:

Land Transfer Tax

The Land Transfer Tax in New Brunswick was introduced in 1983 and applies to all legal property, including mobile homes. The tax rate depends on when the property was registered:

• For property registered before June 1, 2012, or with a sale agreement signed before March 28, 2012, the tax rate is 0.25%.
• For property registered between June 1, 2012, and March 31, 2016, or with a sale agreement signed before February 3, 2016, the tax rate is 0.5%.
• For property registered on or after April 1, 2016, the tax rate is 1%.

The Land Transfer Tax is calculated based on the assessed value of the property at the time of the transfer. The assessed value is determined by Service New Brunswick (SNB), which assesses all real property in the province annually. The tax is then calculated by multiplying the assessed value by the applicable tax rate. For example, if the assessed value of the property is $300,000 and the tax rate is 1%, the Land Transfer Tax would be $3,000.

It is important to note that there are no rebates or exemptions for first-time home buyers in New Brunswick. However, there are certain situations where you may be exempt from paying the Land Transfer Tax, such as when the property is transferred between spouses or to a Crown Corporation.

Payment Methods and Penalties

The purchaser of the property is responsible for paying the Land Transfer Tax. If multiple individuals are purchasing the property, they must agree on who will pay the tax. The tax is typically paid when the title of the property is transferred and can be paid through various methods, including credit card, monthly payment plans, cheque, general banking, or by mail.

Failing to pay the Land Transfer Tax on time can result in interest and penalties. The monthly penalty is 0.7591% of the balance due, or 9.50% annually.

Tax-Delinquent Properties

In New Brunswick, if a property owner fails to pay their property taxes, the government initiates a legal process known as the sale of land for tax arrears. This can eventually lead to the property being listed for public auction. The list of tax-delinquent properties for sale provides valuable information for potential buyers, including location, size, outstanding tax amounts, and minimum bid prices.

Purchasing a tax-delinquent property can be a complex process and requires due diligence. It is important to research the history of the property, understand the specific laws governing tax sales in New Brunswick, and participate in the public auction by preparing a tender and deposit. If you win the bid, you will need to pay the required amount, including unpaid taxes and related fees, and complete the legal paperwork to transfer the property title.

Finding buyers for your land in New Brunswick

Selling land is more challenging than selling a house. Vacant land requires development or the construction of a structure, and there are simply more people looking to buy a home than a piece of land. To find buyers for your land in New Brunswick, you'll need to put in more effort and employ better marketing tactics. Here are some tips to help you attract potential buyers and close the deal.

Understand the Market and the Buyers

The land market is not the same as the housing market. Different factors influence the behaviours of land buyers and home buyers. Recognise and understand these differences to successfully sell your vacant land. The market for vacant land is less active than the housing market, so land sellers need to be patient.

The type of land you're selling, its location, and other factors will determine your target buyers. For example, some buyers are looking for land to build a house on, while others want to use the space for farming or commercial purposes. Understanding your buyers is the first step in finding the right one.

Set the Stage to Sell Your Land

Make your land as appealing as possible to potential buyers. Cut the grass, pick up trash, and remove any debris that might distract buyers. Consider getting a survey done and marking the boundary lines so buyers know the land's exact dimensions.

Develop Your Marketing Plan

If you're selling rural land that doesn't get much traffic, you'll need to do more than just put up a "For Sale" sign. List your land on websites that specialise in selling land, as most people on regular property sites are looking for lots with homes already on them.

Price your land right to find an interested buyer. Setting a price that is too high could scare away qualified buyers, while a price that is too low could be to your disadvantage. Consider offering financing for buyers, as even qualified buyers may have trouble obtaining financing for vacant land.

Use a website to advertise your land, and include all the important information. Utilise Search Engine Optimisation and write blogs about land selling or real estate. Create social media pages to communicate with potential buyers and market your vacant land. Take advantage of Virtual Reality technology and offer virtual tours of the property.

Advertise your land on various listing sites, such as Craigslist or EasyLandSell, to get the attention of willing buyers.

Marketing and advertising your land in New Brunswick

Understand Your Target Audience

Before crafting your marketing and advertising strategies, it's crucial to identify your target audience. Consider the type of buyers who would be interested in purchasing land in New Brunswick. Are they investors looking for profitable opportunities, or individuals seeking land for recreational purposes, such as hunting, hiking, or outdoor activities? Understanding your target audience will enable you to tailor your messaging and promotional channels effectively.

Develop a Comprehensive Marketing Plan

Create a well-structured marketing plan that outlines your goals, budget, and the steps needed to achieve those goals. Define the unique selling points of your land, such as its size, location, proximity to transportation and amenities, and any potential development opportunities. A clear and focused marketing plan will help guide your efforts and ensure a consistent and effective promotional campaign.

Leverage Digital Marketing Channels

In today's digital age, utilizing digital marketing is essential to reach a wider audience. Create a dedicated website or webpage specifically for the land you're selling. Optimize the website for mobile devices to ensure a seamless user experience. Use social media platforms, such as Instagram, to showcase stunning visuals of the land and highlight its best features. Consider running paid promotions on social media to target specific demographics and reach a broader audience.

Utilize Visuals and Virtual Tools

Visuals play a crucial role in marketing real estate. Engage the services of professional photographers, including drone photography, to capture sweeping shots of the land, showcasing its beauty and potential. Create virtual tours and video walkthroughs to provide potential buyers with an immersive experience. During the pandemic, virtual staging became increasingly popular, allowing buyers to envision themselves in the space.

Partner with Local Businesses and Influencers

Collaborating with local businesses, such as home decor showrooms or coffee shops, can help promote your land listing. Consider hosting joint events or open houses to attract potential buyers and showcase the surrounding neighborhood. Additionally, partnering with local influencers or thought leaders in the real estate industry can help spread the word and increase exposure for your land listing.

Traditional Advertising and Networking

While digital marketing is essential, don't underestimate the power of traditional advertising methods. Print advertisements in local newspapers or magazines, and billboards strategically placed near the property, can capture the attention of prospective buyers. Networking within the community and joining local business groups can also help spread awareness about your land listing.

Offer Comprehensive Information

Provide detailed information about the land, including its size, zoning regulations, utility access, and any relevant surveys or reports. Create guides or brochures that highlight the area's best features, such as nearby attractions, schools, and amenities. This demonstrates your expertise and helps potential buyers make informed decisions.

Collect and Share Testimonials

Satisfied clients are your best advocates. If you have previously sold land in the area, reach out to those buyers and request testimonials. Share these testimonials on your website, social media, and marketing collateral to build trust and credibility with potential buyers.

Maintain Consistent Communication

Stay connected with potential buyers through email newsletters, social media updates, and blog posts. Provide valuable information about the local real estate market, any changes or developments in the area, and, of course, updates about the land you're selling. Consistent communication helps keep your offering top of mind and encourages potential buyers to take action.

Negotiating the sale of your land in New Brunswick

Understand the Market

Before putting your land up for sale, it's crucial to understand the current market conditions in New Brunswick. Is it a buyer's or seller's market? How much land is currently available, and what is the average time to sell? Knowing these factors will help you set a competitive price and create a effective marketing strategy.

Determine the Value of Your Land

When determining the value of your land, consider factors such as location, size, zoning, and potential usage. The value will depend on whether the land is suitable for residential, commercial, or industrial development. You can also get an appraisal to help you set a realistic price.

Engage Professionals

Consider hiring a real estate agent or salesperson who is licensed with the Financial and Consumer Services Commission (FCNB) and has experience selling land in New Brunswick. They can provide valuable insights into the local market, help you set the right price, and market your property effectively.

Prepare the Land

Make your land as presentable as possible. If it's overgrown, consider clearing it to showcase its full potential. You may also want to survey the land to provide potential buyers with accurate boundary information.

Negotiate the Deal

When negotiating with potential buyers, be prepared to answer their questions about the land and your asking price. Be open to negotiation, but always keep your bottom line in mind. You can also seek legal advice or consult a licensed mortgage professional to ensure you're making a well-informed decision.

Finalize the Sale

Once you've accepted an offer, work with a lawyer to finalize the sale. They will handle the transfer of the property, ensure all necessary paperwork is completed, and facilitate the payment process.

Selling land can be a complex process, but with careful preparation and the help of professionals, you can successfully negotiate the sale of your land in New Brunswick.

Frequently asked questions