Category: Tax

While there is a section on applicable taxes in the Buyer’s Guide: How to Buy Land in Nova Scotia, the topic is worth a deeper dive. That is particularly true due to the recent increase in capital gains inclusion rates that became effective across Canada in 2024.

Deed Transfer Taxes

The most common tax to be aware of is the Municipal Deed Transfer Tax (MDTT). Municipal Deed Transfer Tax rates are set by each municipality, and generally range from 1.0% to 1.5% of the sale price of the property. At the bottom of the post, you’ll find the applicable MDTT rate for each municipality in Nova Scotia. Municipal Deed Transfer Taxes are collected on behalf of the municipality through Land Registration Offices when the deed is registered/recorded. 

Provincial Non-Resident Deed Transfer Taxes (PDTT)

Here’s the fun part for out-of-province buyers. As of April, 2022, property buyers who are not residents of Nova Scotia must pay an additional 5% in deed transfer tax. This is in addition to the municipal deed transfer tax. The PDTT applies to all residential properties with 3 dwelling units or less, including vacant land considered to be residential property.

NOTE: the PDTT will be 5% in most cases, but it is actually the greater of the assessed value of the property, or 5% tax on the sale price of the property. 

Capital Gains Tax

When selling vacant land, capital gains tax may apply. The difference between the sale price and the original purchase price, minus any eligible expenses, is considered a capital gain. This tax is not part of the purchase and sale process; instead, it’s a requirement as part of the tax return filing of the seller. Capital gains are reported at tax time using Schedule 3, Capital Gains (or Losses).

There are some exemptions. If you’re selling your principal residence – the home you live in – you are exempt from capital gains. But if it’s a second home, a cottage, or just a big ol’ parcel of land you own, you’re on the hook for capital gains.

When you complete the Schedule 3, you’ll enter your original purchase price, sale price, and any eligible expenses including selling and closing costs. The resulting gain after those deductions is what you’ll pay tax on. The tax rate on your first $250,000 of capital gains in a calendar year is taxed at 50%. Any amounts above that are taxed at 67%. For a quick calculation of how much tax you may owe, try the Capital Gains Tax Calculator from Lari.ca.  

 

Taxes Due to an Estate on Death

I’m going to touch on some possible tax events to your estate in the event of your death. Sorry to get morbid, but I do think there’s a real awareness gap here. Land is a funny type of asset. In many cases, it’s passed on to family through the generations. Meanwhile, the value of that land is increasing and, in the event of death it can trigger … you guessed it… capital gains tax. 

 

Upon the death of the owner, the property is deemed to be disposed of at its fair market value. Any resulting capital gain must be reported on the final tax return of the deceased, potentially leading to a significant tax bill. The land can be transferred to a surviving spouse if one exists – this basically defers the tax until a future date when the surviving spouse passes away.

 

To give a quick example, in 1990, Paul inherits a 250-acre woodlot from his parents. Taxes are all paid up by the time the deed transfer is completed, so Paul was not impacted by that and didn’t need to get involved. He spends decades enjoying the woodlot and trails with his family. Meantime, the market is driving real estate prices much higher in the area. Fast forward to today and Paul has passed away. Diving into his estate, his son is shocked at the extent of the capital gain on that land.

  • Original market value (1990): $40,000
  • Current market value (2024): $350,000
  • Capital gain tax payable: $165,020

Effectively, the cost of keeping that land in the family is $165,020 which will be deducted from the assets of Paul’s estate and significantly reduce the funds that his son inherits. These are just pretend figures of course, but I feel this scenario is quite real for many people who may not be aware of the implications. 

There are estate planning strategies that might help you reduce the ultimate tax bill if you have substantial land assets. Those are beyond my scope of advisement and I’d recommend talking to a good financial planner or accountant.

GST/HST on Sales of Vacant Land

I’ve written on this topic in the Buyer’s Guide: How to Buy Land in Nova Scotia, so I won’t duplicate that here. In a nutshell, if the land being sold is owned by an individual and was used solely for personal use, GST/HST does not need to be charged or collected from the seller. There are nuances to this including land that has been subdivided into multiple portions. For a good source straight from the Government, read the info here. 

Property Taxes on Nova Scotia Land

Of course, for any owner of Nova Scotia land, there are property taxes to be paid each year. I’ve written a fair bit about how property is valued and the impact on your taxes in my post called Your Property Assessment and Nova Scotia Property Tax.

 

To wrap up this topic, you will find the list of Nova Scotia municipal deed transfer tax rates below. And here are links to other topics on buying land in Nova Scotia that might interest you:

Municipal Deed Transfer Tax Rates

This data is current as of July, 2024. Municipal tax rates can change over time. For a current snapshot, visit the Provincial website. 

County Municipality Rate Payable at LRO
Annapolis Municipality of the County of Annapolis 1.5% Kentville
Annapolis Town of Annapolis Royal 1.5% Kentville
Annapolis Town of Middleton 1.5% Kentville
Antigonish Municipality of the County of Antigonish 1.0% Amherst
Antigonish Town of Antigonish 1.5% Amherst
Cape Breton Cape Breton Regional Municipality 1.5% Sydney
Colchester Municipality of Colchester 1.5% Amherst
Colchester Town of Stewiacke 1.0% Amherst
Colchester Town of Truro 1.0% Amherst
Cumberland Municipality of the County of Cumberland 1.5% Amherst
Cumberland Town of Amherst 1.25% Amherst
Cumberland Town of Oxford 1.5% Amherst
Digby Municipality of the District of Clare 1.0% Kentville
Digby Municipality of the District of Digby 1.0% Kentville
Digby Town of Digby 1.5% Kentville
Guysborough Municipality of the District of Guysborough 1.0% Sydney
Guysborough Municipality of the District of St. Mary’s 1.25% Sydney
Guysborough Town of Mulgrave 0.5% Sydney
Halifax Halifax Regional Municipality 1.5% Halifax
Hants Municipality of the District of Hants East 1.5% Kentville
Hants West Hants Regional Municipality 1.5% Kentville
Inverness Municipality of the County of Inverness 1.5% Sydney
Inverness Town of Port Hawkesbury 1.5% Sydney
Kings Municipality of the County of Kings N/A N/A
Kings Town of Berwick 1.0% Kentville
Kings Town of Kentville 1.5% Kentville
Kings Town of Wolfville 1.5% Kentville
Lunenburg Municipality of the District of Chester 1.5% Bridgewater
Lunenburg Municipality of the District of Lunenburg 1.25% Bridgewater
Lunenburg Town of Bridgewater 1.5% Bridgewater
Lunenburg Town of Lunenburg 1.5% Bridgewater
Lunenburg Town of Mahone Bay 1.5% Bridgewater
Pictou Municipality of the County of Pictou 1.0% Amherst
Pictou Town of New Glasgow 1.0% Amherst
Pictou Town of Pictou 1.0% Amherst
Pictou Town of Stellarton 1.0% Amherst
Pictou Town of Trenton 1.0% Amherst
Pictou Town of Westville 1.0% Amherst
Queens Region of Queens Municipality 1.5% Bridgewater
Richmond Municipality of the County of Richmond 1.5% Sydney
Shelburne Municipality of the District of Barrington

1.5%

2023/2024 Tax Rates For All Nova Scotia Municipalities

The various agencies of Nova Scotia do a commendable job of publishing information online for residents to access. The problem is, it’s often not presented well. We’ve waded through obscure apps, bizarre data viewers, and cumbersome data tables to find and surface what most people are looking for in a simple format. 

To that end, here’s your tax rate bud.

Source: data. novascotia.ca (as of Oct. 21, 2024)

We’ve also compiled a full list of Nova Scotia municipal land use bylaws and zoning maps. Also, if tax rates are on your mind, you may be interested in our take on Nova Scotia property assessments. And of course, be sure to check out our comprehensive Buyer’s Guide: How to Buy Land in Nova Scotia. Lastly, if you want to understand all of the type of taxes a Nova Scotia land owner can be subject to, read our post on Taxes on Land Sales in Nova Scotia.

 

Area Area Type Residential Tax Rate
Commercial Tax Rate
Cape Breton Tax Rates
Cape Breton MUN – Suburban Cape Breton Regional 1.87 4.61636
CITY OF SYDNEY Cape Breton Regional 2.2154 5.556
DOMINION Cape Breton Regional 2.0154 5.084
GLACE BAY Cape Breton Regional 2.0418 5.11
LOUISBOURG Cape Breton Regional 2.0713 5.14
NEW WATERFORD Cape Breton Regional 2.0286 5.097
NORTH SYDNEY Cape Breton Regional 2.054 5.422
SYDNEY MINES Cape Breton Regional 1.939 5.007
Halifax Region Tax Rates
BEDFORD Halifax Regional 1.115 3.553
COUNTY RURAL Halifax Regional 0.968 3.108
COUNTY SUBURBAN Halifax Regional 0.979 3.553
COUNTY URBAN Halifax Regional 1.115 3.553
DARTMOUTH Halifax Regional 1.115 3.533
HALIFAX Halifax Regional 1.115

3.533
HALIFAX URBAN CORE Halifax Regional 1.21

3.29
Queens Region Municipal Tax Rates
LIVERPOOL Region of Queens 1.93 3
QUEENS COUNTY Region of Queens 1.04 2.14
West Hants Municipal Tax Rates
WEST HANTS West Hants Regional Municipality 0.5314 0.98
WINDSOR West Hants Regional Municipality 0.5314 0.98
HANTSPORT West Hants Regional Municipality 0.5314 0.98
All Other Nova Scotia Municipal Tax Rates
ANNAPOLIS Rural Municipality 1.025 1.8
ANTIGONISH Rural Municipality 0.88 1.44
ARGYLE Rural Municipality 1.11 2.29
BARRINGTON Rural Municipality 1.07 2.56
CHESTER Rural Municipality 0.695 1.5
CLARE Rural Municipality 1.04 2.07
COLCHESTER Rural Municipality 0.885 2.28
CUMBERLAND Rural Municipality 1.14 2.71
DIGBY Rural Municipality 1.3 1.85
EAST HANTS Rural Municipality 0.81 2.57
GUYSBOROUGH Rural Municipality 0.77 2.74
INVERNESS Rural Municipality 1.05 1.91
KINGS Rural Municipality 0.853 2.287
LUNENBURG Rural Municipality 0.81 1.957
PICTOU Rural Municipality 0.815 1.825
RICHMOND Rural Municipality 0.85 2.15
SHELBURNE Rural Municipality 1.28 1.85
ST. MARY’S Rural Municipality 0.97 2.28
VICTORIA Rural Municipality 1.22 2.12
WEST HANTS Rural Municipality 1.0323 1.8
YARMOUTH Rural Municipality 1.18 2.17
Tax Rates for Nova Scotia Towns
AMHERST Town 1.67 4.47
ANNAPOLIS ROYAL Town 1.7 3.2
ANTIGONISH Town 1.11 2.63
BERWICK Town 1.578 3.89
BRIDGEWATER Town 1.85 4.07
CLARK’S HARBOUR Town 1.68 5.58
DIGBY Town 1.91 4.2
KENTVILLE Town 1.4262 3.2962
LOCKEPORT Town 2.4 5.41
LUNENBURG Town 1.376 3.358
MAHONE BAY Town 1.324 3.264
NEW GLASGOW Town 1.84 4.45
MIDDLETON Town 1.81 4.29
MULGRAVE Town 1.2375 4.5257
OXFORD Town 1.7874 4.2804
PICTOU Town 1.69 4.34
PORT HAWKESBURY Town 1.58 4.16
SHELBURNE Town 2.01 3.88
STELLARTON Town 1.88 4.3
STEWIACKE Town 1.58 3.45
TRENTON Town 2.04 4.1
TRURO Town 1.9025 4.5475
WESTVILLE Town 2.13 3.95
WOLFVILLE Town 1.4575 3.575
YARMOUTH Town 1.69 4.31

In the early months of each year, all Nova Scotia property owners will receive a mailing from Nova Scotia’s Property Valuation Services Corporation. This is your property assessment notice, and it directly influences the Nova Scotia property tax you will pay in the coming year. Let’s break it down.

 

How do I ensure my property details are accurate?

At the top right, you’ll see the Assessment Account Number (AAN) for your property. You can use this 8-digit number to view your property details online. This will show property boundaries, any buildings on the land, and prior assessment values. You won’t find much variation from year to year, but it’s important to make sure you’re being assessed for the property you actually own. 

 

What is the timeframe for the property assessment?

Your assessment reflects your property’s market value as of the first date of the year (e.g. January 1, 2023) and its physical state as of a date late in the year (December 1, 2023 for this year). The gap in between these dates matters. If, for example, you tore down an old house and build a huge mansion during that time period, you may receive an assessment that is much higher than the value of that old house due to the changes you’ve made on the property.

 

How does the PVSC know the state of my property?

They have an assessor hiding in the bushes watching your property at all times. Just kidding 🙂 Some properties receive a physical visit, resulting in a photograph of your property. You can see these by looking up your property details online using the AANN number. Many properties are simply updated using a set of valuation rules.

 

Do I have to make a payment?

The property assessment is not a bill, but it will affect one important bill that you receive: your Nova Scotia property tax bill. If your assessment value goes up, you’ll be paying more taxes in the year ahead.

 

What is the property assessment classification?

Your property will show a “classification” such as RESIDENTIAL TAXABLE, or RESOURCE TAXABLE. If your property has more than one use, you might see multiple classifications. Most properties will fall under these categories:

  • Residential property: single-family residences, multi-family residences, duplexes, apartments and condos, nursing homes, seasonal dwellings, manufactured homes, and vacant residential land.
  • Resource property: Farm property, forest property totaling less than 50,000 acres
  • Commercial property: Property deemed for commercial use, and forest property over 50,000 acres

The determination of residential vs. commercial properties is governed by your local municipal bylaws and zoning maps.

 

What is a Capped Assessment, and how does it affect Nova Scotia property tax?

A capped assessment places a limit that the taxable assessment for a residential property can increase from year to year. The property must be: 

  • at least 50% owned by a Nova Scotia resident (another drawback for foreign owners). If your residency has changed – say you moved to Nova Scotia and now qualify as a resident, you can notify PVSC using the CAP Notice of Residency form.
  • a residential property with less than four dwelling units or vacant resource property
  • If it’s a condominium, it must be owner-occupied
  • To qualify for the cap the property must be owned for at least a year, or ownership remained within the family. 

 

When a property is sold, the cap will be removed in the following year unless it is sold to a family member. 

 

The 2024 Cap rate is 3.2%.

 

What is the Taxable Assessed Value?

Nova Scotia Property AssessmentThat’s the most important number! That reflects the property value that will determine your Nova Scotia property tax. Unless you have a capped assessment, in which case you’ll pay tax on the lower of the two numbers.

 

How much Nova Scotia Property Tax will I pay?

That depends on your municipality. They determine their budgets and set tax rates that will cover the costs for municipal services (and possibly some fancy ergonomic keyboards because they’re tired of typing on a cheap old clacker). We created a really long table with all of the municipal tax rates in Nova Scotia for the 2022/2023 year. 

 

What should I look for in my property assessment history?

You want to check how the assessment value has changed, and how that will impact the Nova Scotia property tax you pay. If it has jumped up substantially, you have an option to appeal.

 

How do I appeal my Nova Scotia property assessment?

The property assessment you receive has a small form on the back. You can fill it out and mail, email or fax it to PVSC. You MUST do this by the deadline. The current deadline is midnight, February 8, 2024. 

  • To submit by mail: mail the completed form to Assessment Appeals, 6-15 Arlington Place, Truro, Nova Scotia, B2N 0G9
  • To submit by email: send a scan or a photo of your form to inquiry@pvsc.ca
  • To send by fax: 1-888-339-4555 (within North America) or 1-902-893-6101 (outside North America)

 

How does the appeal process work?

I have successfully appealed one property, so I’ll use that example here. I submitted the form and within a few weeks I received a call to discuss the details. I guess my claim was considered legit, because it was then passed on to an assessor, who called me about a month later. 

 

Everything sounded positive. I had a pretty strong case because the property in question had a house on it that was falling apart and non-habitable, but the assessment value was still based on the market value of the home when it was in suitable condition. So, some months went by and I received the paperwork for my new assessment, which was reduced by over $100,000.

 

There is no cost to appeal, and you do not need a lawyer. Though of course, if you get into some gnarly property issues a Nova Scotia property lawyer may be useful. 

Want more on tax?

If you want to learn more about the full range of taxes a Nova Scotia land owner may be subject to, read our post on Taxes on Land Sales in Nova Scotia.

(Note: this post deals with the provincial deed transfer tax affecting foreign buyers. View this post for information on the repeal of restrictions for foreign buyers purchasing vacant land in the Federal Prohibition on the Purchase of Residential Property by Non-Canadians Act). For a full overview of all the types of taxes applicable for a land owner in Nova Scotia, read our post on Taxes on Land Sales in Nova Scotia.

 

Effective April 1, 2022 the Province of Nova Scotia introduced a non-residential deed transfer tax. It is described as a measure to make home ownership for Nova Scotians more accessible. The tax amounts to 5% and is paid as deed transfer tax when a property changes hands. 

 

So what about vacant land? Vacant land is subject to the 5% transfer tax if it is classified as “residential”. To my understanding, this includes all land except land classified as “resource” or “commercial”. Most individuals aren’t buying vacant land classified as commercial, however the “resource” classification is not uncommon. On forested lands, there can be a percentage split between “residential” and “resource”. 

 

There are some exceptions, for example if you plan to move to Nova Scotia within six months. You can see full details here. Unfortunately, most out-of-province buyers will be dinged with this new tax. To give an example of the difference, let’s take the average vacant land sale price from our recent post on Nova Scotia vacant land sales statistics: $72,250. There’s a deed transfer tax calculator on wowa.ca. So, on that $72,250 purchase, an out-of-province buyer is paying $4,696.25. A Nova Scotia resident, in contrast, would pay $1,083.75.

 

So congratulations to Premier Tim Houston –  you’ve chased off a whole class of buyers that were ready and eager to invest in Nova Scotia. Many of these buyers are also developers, with an interest in building on vacant land. Are they building luxury vacation homes so they can helicopter in on weekends, eat caviar and splash around in the pool? No, most that I know are looking to build… wait for it… affordable single-family homes. This new housing would then be sold on the market, providing a much-needed boost in the amount of homes available for local buyers. 

 

With this new tax, many developers will simply look elsewhere. Nova Scotia’s production rate of affordable housing will be limited to the slow pace provided by local economies. It’s a penny-wise-pound-foolish approach designed to win popularity points with voters who tend to perceive “outsiders” as the problem for whatever ails them. 

 

According to a CBC article, there are about 28,000 non-resident property owners in Nova Scotia. Of these, 42% hold vacant land. It’s not a large number for a province the size of Nova Scotia, and the vacant landholders in particular are not to blame for a shortage of affordable housing in Nova Scotia.

 

The legislation brought a lot of negative attention to the Nova Scotia government, leading them to pull back on another component: the non-resident property tax. And the distaste for the new taxes wasn’t limited to foreigners. As one Nova Scotian commented online: “Everyone except the xenophobic types saw this as the bad idea it was.”

 

Contents

 

Cape Breton Island

Buyer’s Guide: How to Buy Land in Nova Scotia

Who is this guide for?

I have driven all over Nova Scotia in search of prize parcels of land, gems tucked away in forests or remote coastlines that few have visited. I’ve seen places I’ll never forget. In writing this guide however, I’m quite aware that not everyone can devote such time and energy to their search for land. So here’s the first bit of good news – 90% of the work can be done from any laptop anywhere in the world. With the range of data and satellite mapping available today, you can get an in-depth view of any land parcel from Barrington to the top of Cape Breton. This document will hopefully be useful to everyone with an inclination to buy acres, but hopefully particularly valuable for those at a distance such as out-of-province buyers.

Why buy land?

Let’s start with the fundamental question of “why?” There are SO MANY reasons that buying land in Nova Scotia is a smart move. I’ll describe some here:

  • Appreciation potential: unlike your car, your TV or your laptop that decrease in value for each year you own them, land is an asset that generally appreciates in value over time. And the best part is this appreciation happens passively through market forces – you can literally do nothing and watch your real estate values increase.
  • Land is a fixed commodity: Money gets printed, new corporate stocks get issued, new cryptocurrencies and NFTs pop up daily – there are no expansion limits to these assets. Land, on the other hand, has a finite supply, No government or billionaire is issuing new land. It has a lasting value that is more durable and predictable than other asset classes.
  • Low carrying costs: Owning a home, whether you live in it or not, involves significant upkeep and maintenance costs, plus taxes and insurance. Land, should you choose to leave it, will hold its value at very little cost to you. Most land owners pay only property taxes to maintain their land. We’ll dive into property taxes and assessments later – but suffice to say, the costs are minimal.
  • Land has many uses: I tend to look for land that has potential for a great residential home or cabin. Others are looking for farmland or pasture. Forestry is a big industry in Nova Scotia as well. You can lease land for hunting or camping. And then there are many commercial / small business uses as well.
  • Environment, sustainability and climate change: Natural land, particularly forested areas, have a beneficial effect on limiting climate change. Forests sequester twice as much carbon as they produce (wri.org). If you’re looking to improve your carbon footprint and achieve net-zero, sustainably managed forest lands can help you achieve that goal. You can also play a role in protecting natural habitats and flora and fauna.
  • Land use opportunities are evolving: Voluntary carbon credit markets are expanding rapidly and the projected value of carbon credits is poised for rapid growth. Initiatives like  the Family Forest Carbon Program are generating new revenue for woodlot owners who simply maintain a healthy forest. This activity generates carbon credits that have commercial value. We have yet to see these programs fully expand to Canada, but expect it will be soon. 
  • Leaving behind a legacy: What better inheritance for your successors than a beautiful place on Earth? Land is often passed down through multiple generations, making it a generous gift that has new potential with the next generation.

Why buy in Nova Scotia?

Appreciation potential: According to Statistics Canada, the average price per acre of “farmland with buildings” in Nova Scotia has increased over 40% in the last 10 years. But this is just an average – hot markets and unique properties (e.g. waterfront) have the potential for very strong return on investment.

Natural beauty: There’s only so much oceanfront in the world, and Nova Scotia certainly has its fair share. Add to that all the lakes and forests and rivers, and the diverse landscapes from the Annapolis Valley to the Cape Breton Highlands, and you’ve got something unique. 

Affordability: Nova Scotia is among the most affordable places to buy land in Canada, according to Statistics Canada, ranking behind only Manitoba and virtually equivalent to Saskatchewan. By comparison, land in Ontario is nearly 5x more expensive. Check out our post on Nova Scotia vacant land sales statistics.

 

Where should I buy?

It’s a critical question. Nova Scotia has so much range in terms of geography, climate, access to infrastructure, land cost, and employment opportunities. So naturally the choice will vary based on your needs. You should start by narrowing it down to a cluster of counties.

You can use some data here to help with your search. Are you looking for urban areas, or remote getaways? Population data provides a clue to that, particularly the last column below “population density”.

As for climate, there are certainly differences between counties, but I find these are overstated relative to the facts. The South Shore municipalities (Shelburne, Yarmouth, etc.) have milder winters due to Gulf Stream currents, whereas the more northern areas like Inverness is slightly colder due to the colder waters of the Gulf of St. Lawrence.

 

I have spent time in most, but not all, Nova Scotia counties. It’s so hard to generalize all those experiences, but here’s a few observations:

  • Halifax is of course the epicentre, and generally land values are highest there and radiate outward
  • South shore municipalities have milder winters, more fog, and are generally more remote
  • Annapolis Valley is the spot of choice for farm produce
  • Inverness and Cape Breton have higher elevation levels, providing the best mountain views

 

How to buy land in Nova Scotia

The most common method is through a realtor, which follows many of the same steps as purchasing a house. I’ll deal more with private sales here, which is what a lot of people ask about.

 

Buying through a Nova Scotia realtor: Local is always best. Find a realtor who lives and works in the vicinity that you’re searching. Talk to a few, and ask questions about their expertise in land, their commissions, and how they will help with your search. Once you’ve found a good fit, they’ll issue a contract. Read it carefully – you’re making a commitment to be their exclusive client for (how many months?) for any land purchases in (how big of an area?). These are boundaries and obligations you need to be aware of. If you’re out of province, a good realtor will do most of the looking for you and filter it down to the best opportunities. If you’re bold and trusting, you can buy the land sight-unseen – my recommendation will always be to visit and walk the property.

 

Buying through private sale: There is a huge hidden market in Nova Scotia of landholders who aren’t marketing their properties through MLS. I’ll dig in to how to find these opportunities later. A private sale is simply the purchase of a good between one party and another. It’s quite simple, but of course there are some important factors to watch for. Done right, it’s quick, painless, and commission-free!

 

Other methods of buying land: There are tax sales and foreclosure sales happening all the time. While I have fairly deep experience with these methods, they are not for your average buyer and I won’t go into detail here. There are also some great methods for buying land that is not for sale that I’ll cover in a future post.

 

Finding land to buy

Here we’ll cover the traditional method of finding land to purchase, as well as some lesser-known methods.

 

Real estate sites/apps: The global real estate sites such as realtor.ca, point2homes, zillow etc. will likely have some listings, but I prefer to use a regionally focused site. I’ll zoom in on the two that I use. Note that I’m almost always looking using a map as my main frame of reference, so for me a good map that plots land for sale is key.

  • Viewpoint.ca: Viewpoint is focused exclusively on Nova Scotia. It’s a website with MLS listings as you’ll find elsewhere, but for me it stands out for the quality of its user interface, the integration of valuable data points, and some handy tools.
  • RemaxNova: ReMax’s Nova Scotia focused web property is far better than those I’ve seen for other provinces, primarily for its quality map view and associated tools. 

I will dive into some power user tips for these two properties a bit later in this document.

 

Classified Listings: You’ll find land for sale in local publications and their online properties. I find these a bit cumbersome and low-value based on my limited experience. Kijiji.ca is a faster alternative and has categories devoted to land for sale. 

 

Facebook Groups: There is at least one Facebook group devoted to land for sale in Nova Scotia. Want to join it – search for “land for sale in Nova Scotia” 

 

If you’ve narrowed your search to some key specifics (e.g. Lunenburg County, 6-10 acres with lake or river access), try posting a “wanted” post in Kijiji or a Facebook Group. It’s an easy way to reach out to private sellers who may have exactly what you need, without the competition of all the potential buyers browsing available MLS listings.

 

What’s in a Land Listing?

There’s a lot of detail in a typical listing of land for sale, so let’s take a look at the meaning and importance of these data points. Here’s a typical listing of land for sale from Viewpoint.ca:

There’s some vital information here, some of which is obvious (e.g. price), and others that may require some explanation:

PID: The Property ID is the most valuable identifier of a land parcel. It’s a unique number that allows you to find that land and the boundaries of it through the various tools I describe in this guide. Sellers will usually include the PID when they reference a plot they have for sale, but if they don’t it should be the first piece of information you ask for. It’s essential – that’s why it’s top of the list for our good questions to ask when buying land.

Assessment value & Tax: These figures show the assessed value of the land, as well as the annual tax that is levied on the owner, which is based on Nova Scotia municipal tax rates. All of Nova Scotia’s property assessments are provided annually by Property Valuation Services Corporation (PVSC). As they explain on their site, assessment value is intended to reflect market value (what it would sell for), but never assume the two are the same. Actual market values can vary widely from assessment values, usually higher in a market with active buying and selling. It is however a useful reference point for looking at the relative value of the land compared to the selling price, and provides a clear indication of what the taxes will be (with some variance year to year).

Like the PID, each parcel of land is attached a unique number that relates to the assessed value. This is the AAN or AANN. In Viewpoint, hovering over this listing on the map reveals the AAN number. It’s important to know this number as well. You can use it to do a lookup on pvsc.ca and find valuable additional information on the property.

PCDS: This stands for Property Condition Disclosure Statement or PDS for Property Disclosure Statement. Here is more info from the Nova Scotia Real Estate Commission. Now here’s my take on it. Buying land vs. buying a home or commercial real estate involves different risks and different forms of due diligence. Some examples:

  • A home may have a leaky oil tank that creates soil contamination. A good home inspector and possibly an environmental assessment may be required.
  • A home may have an under-the-radar extension to it that is not up to code and has no associated permit with the municipality. Again, a good home inspection can help. 

Land, on the other hand, has different types of risks.

  • Coastal properties may suffer from increased flooding or erosion risk due to rising water levels
  • Land that appears nice and dry in good weather may be flooded and soggy 9 months of the year

Most land that I see, have purchased or sold, is as nature built it, with few signs of human influence. With these types of properties, I’m mainly looking for nature-based risks that would diminish the land’s value. If there’s a run-down sawmill on the property, whole different ball game – more due diligence required.

Bottom line is a PCDS or PDS is a good idea if you’re purchasing a building. Land that is unused has less risk, and I would not suggest limiting your search to those that offer PCDS documents as those are exceedingly rare based on my experience.

Lot Size: Fairly obvious, but occasionally you’ll be required to compare square feet against acres against hectares. Square feet is common to most people. There are 43,560 square feet in one acre. Got it? Here’s an easier reference… remember your old high school football field? Include the end zones and now you’re picturing what one acre looks like. So eight acres is 8 football fields. A hectare is 2.47 acres  – let’s just stick with acres!

The smallest lot I have purchased in Nova Scotia was 21,000 square feet, so almost a half acre. The largest was 204 acres. The median size lot for a typical city dweller is 7,700 square feet – but unless you’re looking at something in metropolitan Halifax, you’ll likely want something larger to give yourself room to roam!

A good property search tool like Viewpoint or ReMaxNova will also allow you to see sales history for the lot, as well as tax assessment history and other details. 

So what can you not tell from a listing? Some pretty vital details:

  • Accessibility: Is it accessible by a 4-season, well-maintained road? Is it landlocked?
  • Proximity to…: where’s the nearest gas station, store, town, hospital, school? How far to the nearest lake or ocean?
  • Views: Can you see the ocean? Does it have elevation that allows you to watch the sunset? These can be factors that affect price dramatically.
  • Terrain: what is the land made up of? Forest, meadow, marsh?
  • Timber value: has it been clear-cut recently? Is there commercial value in the standing timber?
  • Zoning uses: Can you build on it? We’ve compiled a complete list of Nova Scotia land use bylaws and zoning maps for each county and municipality.
  • Access to power: are there hydro lines in the vicinity?
  • Sewage and water: The most common method in rural lands is a well and a septic tank, but some areas have access to municipal sewer and water lines

 

Power User tips for reviewing online land listings

Here are the most useful tips I’ve found for reviewing land listings. Hopefully they save you as much time as they’ve save me!

  • Filters, filters, filters: Often the most meaningful method you’ll find for evaluating the market value of land comes from comparable sales of similar land lots in the vicinity. I look for land lots of similar size and quality as close as possible. Two filters are useful here:
    • ReMaxNova has a filter for “Class”, and you can select “vacant land” to see only listings of this type. This is handy, but I don’t use it exclusively – seeing nearby home sale values is also a good indicator of land value.
    • A good map like Viewpoint or ReMaxNova will allow you to toggle on/off listings that are “active”, “pending” or “sold”. Very useful for comparing against land you’re looking at. Active listings are useful, but bear in mind some sell for less than asking price. Pending sales are a better indicator of actual value, and sold listings are genuine money in the bank.

Use filters to compare against similar properties sold in the vicinity.

  • View terrain through multiple lenses: ReMaxNova uses a different satellite imagery system than Google Earth. Why is this important? A view that shows a lush forest in one might be clear-cut in the other. A dry area in one might be flooded in the other. Scanning multiple views gives you more pictures from above and a more accurate picture. You can also see a topographic view of the land, showing elevation, marshy areas and other natural highlights – very useful for spotting swampland!
  • Note the date of the satellite imagery: Sources like Viewpoint that pull in Google Maps imagery will always list the copyright as “Google (current year)”. Viewing that same image in Google Maps will show you the actual year it was taken, sometimes more than a decade ago! I’ll deliberately go to Google Maps to determine how old the satellite photos are.
  • Always look at Street View, when available: Viewpoint nicely integrates Google’s Street View so you can zoom in on listings and get a much closer look. This really gives you a feel for the terrain as well as the quality of the property and other important factors like road conditions, views from the property, etc. There are many rural areas that are not mapped with Street View however. In these cases, you sometimes you can get a view from a nearby road – not as useful but still gives you an impression of the landscape, tree height, forest quality, etc.

Street View is a great way to get a closer look at an area, noting property views, access to power lines, and terrain quality. Viewpoint integrates this view, but go to Google Maps directly to note the actual year of the satellite imagery (in this case 2018)

A handy measuring tool: Viewpoint has a great “measuring tool” feature that allows you to pick points on a map and easily measure the distance in between. Extremely useful. Update: RemaxNova has a handy measuring tool as well! And it works well on the mobile view of their site too. 

Is there room for a driveway? Viewpoint’s measuring tool helps you find out.

 

Things you can’t see on a map

There are of course many important details that a map view won’t illuminate. The two main ones are zoning details and title issues.

 

Zoning Bylaws

Zoning refers to land use bylaws of the local municipality. These are highly localized to the specific area – no one-size-fits-all answers. If there’s a realtor involved on the buying or selling side, they should be able to inform you of the zoning and the relevant uses. For a private sale, searching within the municipality may yield some luck. UPDATE! Search no further my friend… we’ve compiled links to all Nova Scotia land zoning maps and land use bylaws for every region in Nova Scotia.  

 

Let’s use an example. I have a 14-acre lot near the Cabot Trail that falls under the jurisdiction of the County of Inverness. Through our handy list of all Nova Scotia zoning maps I was able to find the zoning map for Inverness and determine that my lot is zoned as RR-1 – Rural-Residential. From there it’s a matter of digging into the relevant local land use bylaw. These are long documents that contain all the ordinances associated with each type of zone. For RR1, for example, the following land uses are permitted: 

  • Single detached dwelling  
  • Duplex and Semi-detached dwellings  
  • Converted dwelling up to two units  
  • Mobile homes subject to setback requirements  
  • Cottages and other seasonal dwellings  
  • Tourist and guest homes  
  • Agricultural uses including barns and stables  
  • Forestry uses  
  • Post offices  
  • Community centres  
  • School, churches, cemeteries and other similar institutional uses  
  • Recreational uses such as parks and playgrounds, golf courses, beaches and associated buildings and uses  
  • Campgrounds and associated uses  
  • Existing Mobile Homes which are located within the 300 foot setback requirement from the Cabot Trail 

The document also contains provisions for minimum yard space and maximum height of buildings. Now, this is an example of when you fairly easily find what you’re looking for. In many cases you won’t – you can always get in touch with the municipality if you need a definitive answer.  Adhering to Nova Scotia’s zoning bylaws is quite important and it’s a good idea to review these provisions in detail, even if you have a realtor summarizing the information for you. If you have a specific plan in mind for the lot (e.g. building a summer campground) talking directly with the person who approves permits could provide you with some vital information for your go/no-go decision.

 

Title Issues

Title refers to the legal documents binding the land to a specific owner, as well as details and provisions specific to that land. It includes, among other things:

  • The various deeds associated with the property over the years
  • A map of the property
  • Easements and rights of way (often included in the deeds mentioned above). These are especially important when land appears landlocked (no road in) or if there are shared private laneways or driveways. You’ll also find that many easements exist for logging operations within Nova Scotia.
  • Claimholders on the property (e.g. mortgage owner)

Title reviews and issues are often the realm of Nova Scotia real estate lawyers, and I’m not one. Typically a title review is a step undertaken by a lawyer late in the purchase process. It ensures the land is indeed owned as indicated and identifies any potential red flags for the buyer. 

 

You can, however, gain access to the database that houses all documents related to properties in Nova Scotia. Access Nova Scotia’s Property Online (POL) database is available to subscribers for roughly $100 monthly (as of March 2023). I pay this fee and use this land registry database as an essential component of due diligence as I research properties. For buyers who are considering a private sale of Nova Scotia land, as an early step in their process, I recommend conducting a title search using Property Online’s Land Registry.

 

Closing the purchase of your land

Much like buying a house, the purchase of land involves the following steps. Usually there’s a series of questions from seller to buyer (directly in a private sale, or through a realtor when one is involved). There are a lot of important things to look into and ask about, which is why we compiled our list of Good (and bad) questions to ask when buying land in Nova Scotia.

Once the potential buyer has all the information they need, the next steps are:

  • Negotiation, or the presentation of a written offer
  • Signed acceptance of the offer and associated terms
  • Deposit delivered by buyer within a specified timeframe
  • Title search and deed transferal / registration conducted by the buyer’s real estate lawyer

I’m not going to dive into a lot of detail on these steps as they are pretty straightforward and likely better explained by a realtor or a lawyer. I will comment however on some differences associated with a private sale of land.

 

Private Sales and Seller Financing

Private sales are typically less formal and more flexible. There is a period of questions and answers between the buyer and seller, warming up to negotiations and an offer. There is room for unorthodox financing methods: I’ve had a potential buyer offer me to trade his truck for land, for example. Seller financing is a flexible option in private sales. When the buyer is willing, they can work with the seller to establish terms of payment on a set schedule. Typically the deed is not transferred until payments are complete. An important discussion point in these agreements is how the land can be used while payments are being made. Can the buyer begin to develop the property? Can trees be cut down? Sellers will be cautious due to liability concerns, so ensure that these points are talked through and jointly understood.

When all factors align, a Nova Scotia real estate lawyer is engaged to draft a sale agreement. This specifies the sale price, deposit amount, terms of payment, and when/how the deed is transferred. As a buyer, you should engage a lawyer to review this document in detail. Most agreements are fairly standard, but you don’t want to regret something later. Below is a fairly basic and standard template of the steps involved in a sale with seller financing. We’ve also added a sample Purchase & Sale Agreement for vacant land in Nova Scotia, with seller financing terms included. It’s important that your agreement includes any loan conditions such as downpayment, interest rates, and payment intervals. You can use an online loan calculator to determine these amounts. 

  Action Owner

Description

1.

 Review confirmation of ownership Buyer

Attached document provided as proof of title ownership
2. Send initial deposit (e-transfer) Buyer

$XXX deposit, refundable if sale agreement is not signed. Once received, owner will pause all advertising and negotiations with other buyers. Receipt provided by Owner.
3.  Lawyer engaged to migrate land and create sale agreement  Owner

(Name of) law firm engaged to migrate property and draft sales agreement. Legal fees paid by Owner.
4.  Review and signing of Sale Agreement Buyer

Sale agreement specifies downpayment, monthly payment terms, conditions of sale.
5.  Downpayment sent to Owner Buyer

$XX,XXX delivered to Owner
6.  Access to land  Buyer

Buyer is granted access to land upon delivery of downpayment, subject to usage terms of sale agreement. 
7. Monthly payments  Buyer

Monthly e-transfers to owner based on sale agreement schedule. Written confirmation of payments provided by owner. 
8. Deed Transfer Owner

Upon completion of final payment, Owner will transfer title of deed to Buyer. 

Do I need insurance on vacant land?

I’ve been asked by land buyers whether they should hold an insurance policy on their land. The short-but-not-terribly-helpful answer is: it depends. I won’t give a prescriptive answer, just my opinion – and of course you might want to consult with your lawyer. I have multiple lots of vacant land, in remote areas. I don’t lease it out for hunting, I don’t grant permission for access to hikers or snowmobilers, I’m not aware of any open wells or … pit mines… someone might fall into, and I’m not located in shared paths that others might tread. So, no insurance for me at this time. Should someone trespass on my land and injure themselves, I’m fairly confident that I won’t be held liable, so I take that risk. There’s no excuse for negligence however, regardless of the insurance you carry – if there are hazards on your land, take appropriate action to ensure no one gets hurt.

On the other hand, if you have a shared right of way on your property, or agree for any reason to allow others to access your land, it’s worth looking into. Also, if your property has value in the form of standing timber, fire insurance is something to consider. 

Is there HST or other tax on land sales?

Most sales of vacant land by individuals are exempt from HST, in Nova Scotia and across Canada. According to the CRA information sheet,  examples of exempt sales are:

  • the sale of land that had been kept for personal use; or
  • the sale to a relative (or to a former spouse or common-law partner) for their personal use of a parcel of land created by subdividing another parcel.

However, there are situations when sales of land by individuals may be taxable. Examples of taxable sales include:

  • the sale of land that is capital property that had been used primarily in a business;
  • the sale of land in the course of a business; or
  • the sale of a parcel of land created by subdividing another parcel into more than two parts.

Based on these definitions, the sale of farm land in Nova Scotia is generally taxable at the HST rate of 15%, but there are some allowable exceptions. 

As a buyer, you don’t need to know the specifics of the tax code re: HST applicability. That’s up the to the seller to determine. Just make sure you know whether HST is included, additional to, or not applicable on the sale of the property in question.

If you are out of province, you should definitely be aware of Nova Scotia’s non-resident deed transfer tax, which is 5%. For more on this, view our blog post on the non-resident deed transfer tax. Lastly, for a full round-up of the taxes that may be applicable on a sale/purchase of land, visit our post on Taxes on Land Sales in Nova Scotia.

 

Conclusion

Owning a portion of Nova Scotia’s natural beauty is something unique and special. I hope you found my tips, advice and information useful, and I hope your search is fruitful in terms of landing you the place of your dreams.  Another piece of advice – don’t get lost! Learn about using Nova Scotia GIS maps and you can never be lost again. Then, finally, once you’ve got that land purchased, you’ll be ready to dive into our Nova Scotia Land Development Guide.

 

I’ll continue to update this document over time, and your feedback can likely make it much better. Please feel free to add a comment below – I will read them all and give them careful consideration.