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Buying Real Estate with Bitcoin
What is Bitcoin
Bitcoin is the world's first cryptocurrency, a decentralized digital currency that is based on a network of nodes that use cryptography to verify and record transactions in a publicly distributed ledger, commonly known as the blockchain. Unlike regular currencies (such as Canadian dollar), Bitcoin transactions take place between users directly, without the need of a trusted third party (e.g. banks, payment processors, clearing houses, etc).
What properties can be acquired with Bitcoin?
Real Estate Bay Realty can accommodate the purchase of any property listed for sale in the Greater Toronto Area (GTA) using Bitcoin. We take care of the entire purchasing process from start to finish in such a way that it is 100% seamless to both the seller and the listing brokerage. From the standpoint of the seller and the listing brokerage, the transaction is exactly the same as those processed in Canadian dollars.
Process of purchasing real estate with Bitcoin
Before you purchase real estate using Bitcoin, you need to find a property that you are interested in first. Our team of real estate professionals will guide you through the entire process, assist you with preparing an offer as well as negotiate the purchase price and conditions on your behalf.
Once your offer is accepted by the seller and upon receiving a deposit or a full amount of the property value in Bitcoin, we immediately issue the funds in Canadian dollars to the listing brokerage's real estate trust account via a wire transfer or an inter-company cheque. From the standpoint of the seller and the listing brokerage this process is no different from a regular deposit in a typical Canadian dollar denominated real estate transaction. The listing brokerage then holds the funds in their real estate trust account until the completion of the transaction.
Taxes and closing costs
Land transfer tax and closing costs, such as home inspection and/or lawyer fees, must be paid exactly the same as in a Canadian dollar denominated transaction. If you prefer to pay for those costs using Bitcoin, we can accept your Bitcoin and issue an equivalent amount as a Canadian dollar denominated cheque to be deposited into a regular bank account. Please note that if you are buying real estate in Ontario as a non-resident of Canada, you will be subject to a 15% non-resident speculation tax as per Ontario's Fair Housing Plan.
Incomplete real estate transactions
In an event that the transaction is not completed due to home inspection, financing, status certificate or any other condition, the funds that are held in a listing brokerage's real estate trust account are then issued back to you in Canadian dollars within 10 (ten) business days as per Real Estate Council of Ontario (RECO) guidelines. Due to the volatile nature of Bitcoin, deposit refunds can only be processed in Canadian dollars.
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