Situation · Owners
Retirement or health: selling your building or business on your timeline
A planned exit means choosing when and how you sell, rather than having it chosen for you. Tax shapes it early. In BC, property transfer tax is 1% on the first $200,000 of a property’s value, and a share sale where title doesn’t change may not trigger it, depending on the facts. Ask your lawyer and accountant.
For: Owners · Business owners
Go deeper
Plain-English definitions with BC sources, from the encyclopedia:
- Selling a business that owns or leases its real estate in BC (guide)
- Vendor take-back (VTB)
- Share sale
- Property Transfer Tax (PTT)
- Term (loan)
- Subject removal
General information only. This page is not legal, tax, accounting or financial advice, and it isn’t an opinion on your situation. Laws, rates and figures change, and examples are illustrative. Get advice from a lawyer, accountant or other qualified professional before you act. Reading this page doesn’t create an agency or client relationship. Cam Appleton is a Commercial Real Estate Agent licensed by the BC Financial Services Authority (BCFSA RE611549) with Coldwell Banker Prestige Realty. Terms and disclaimer.
Start two years out
Many owners find it helps to start planning about two years before they need to sell. That’s a rule of thumb, not a statistic. Gather who owns what, 3 years of financials, leases and a clean rent roll, and your wishes for family or an outside buyer.
Business, building or both
| Sell | Good for | Watch for |
|---|---|---|
| Business only | Keeping the building as a rental | You may become the buyer’s landlord |
| Building only | Owners who lease to others | Tenants and leases go with the sale |
| Both | A clean exit | Two valuations, more buyers to satisfy |
Ways to keep income
A vendor take-back lets you lend part of the price to the buyer and collect payments. A sale-leaseback lets you sell the building and stay as tenant.
What makes a planned exit easier
- Have a continuity plan
- A written plan for what happens if you can’t work protects your family, and tells buyers the business is well run.
- Can it run without you?
- Write down your systems and test running the business without you. That’s a big part of what buyers pay for.
- Sort out the lease first
- If you sell the business but keep or lease the space, it helps to settle the lease term and assignment clause a year or two ahead.
- A plain reason for selling is fine
- Retirement and health are reasons buyers understand. Say it simply.
- Stay on, but after closing
- Many sellers offer a training or consulting period after closing, rather than letting a buyer “try it out” first.
- Plan for the whole timeline
- Leave room for due diligence and subject removal. Documents from third parties, like a strata, can take time.
Talk to your accountant before you list, because after-tax proceeds can change which offer is best. Get a lawyer for the agreement and any seller financing.
Cam is a licensed real estate agent, not a lawyer or accountant, so take the legal and tax questions to them.
Tax first
Ask early: assets or shares? A share sale may mean no property transfer tax because title doesn’t change, depending on the facts, but the buyer inherits the company’s history. Shares of a qualifying small business may also be eligible for the lifetime capital gains exemption. Canada Revenue Agency (CRA) shows $1,250,000 for 2025 and still labels it as proposed, and the limit is indexed, so confirm the current figure with your accountant. CRA lists qualified small business corporation shares and qualified farm or fishing property as eligible. Whether your shares qualify is a question for your accountant. Get both accountants talking before a letter of intent.
More in selling to retire and succession planning.
Common mistakes
- Starting tax planning after the deal is signed.
- Waiting until health forces a quick sale.
- Selling the business and building together without asking whether separately would net more.
- Leaving family and partners out of the plan until late.
Clean numbers and tax questions before you list
A retirement or health sale goes smoother when the rent roll, expense ledger, and capital repairs are tidy before buyers arrive. Messy add-backs and half-finished landlord work show up in estoppels and slow the close.
Tax is personal. Lifetime Capital Gains Exemption (LCGE) eligibility, share versus asset structure, and timing around a deemed disposition are questions for your accountant—not something to decide from a blog post.
Pick a realistic window, then work backwards through listing prep, estoppels, and your own next housing or cash needs.
Questions people ask
How far ahead should I plan to sell?
Many owners plan about two years ahead. That can give time to tidy the financials, leases and tax structure.
Should I sell the business and the building together?
It depends on your goals, including whether you want rental income afterwards. Selling both is often the simpler exit, while keeping the building can provide income. Talk to your accountant.
What is a vendor take-back?
A loan from the seller to the buyer for part of the price, paid back over time.
In practice
How I help with selling on your timeline
This page is for you if retirement, health or family changes mean you want to sell on a timeline that works for you.
- Happy to plan a sale around the date you need, not the other way around.
- We can help get leases, records and estoppels in order early, so the sale isn't held up.
- I’ll work with your accountant and lawyer on timing and structure.
What to watch for
- Rushed sales that leave money on the table.
- Tax timing you could plan for.
- Leases rolling during the sale.
The steps, in order
- Set your ideal date and your latest acceptable date.
- Prepare documents and settle renewals.
- Go to market with time to spare.
Good questions to ask
- How long does a sale like mine usually take?
- What should I prepare now?
- When should I talk to my accountant?
Lease and property law has BC-specific wrinkles, so for anything legal, check with a BC real estate lawyer before you rely on it. This page is general information, not legal, tax or financial advice. Cam Appleton is a licensed real estate representative with Coldwell Banker Prestige Realty.
Next step
Planning your exit?
Tell me your timeline. I’ll give you a value for the building and help you plan the sale around your timeline, not the other way round.
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