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Deciding to Build

Where Do We Live While Our New Vancouver House Is Built, and What About Our Tenants?

The short answer

Plan to move out for the whole build: a house is demolished before the new one starts. If you have tenants, BC's Residential Tenancy Act lets you end a tenancy to demolish the unit only once you hold all the permits and approvals, with at least 4 months' notice and one month's rent in compensation. Before you move out, tell your insurer, because many home policies exclude a house left vacant or under construction, and claim the construction exemption from BC's speculation and vacancy tax.

Sources checked on November 8, 2026. Rules change, so confirm them before you act.

Plan Your Own Move First

There are three usual choices: rent nearby, stay with relatives, or move into a suite you already own. Pick a place close to school and work, because you will visit the site often: at handover we walk through every room with you, and during the build there are decisions on finishes, fixtures and changes.

Time the move to the permits. Keep living in the house until your builder gives you a firm start date for demolition. Ask for a schedule with the main stages, and plan your lease so it can run longer if the work does.

If You Have Tenants in the House or Suite

Section 49(6) of BC's Residential Tenancy Act lets a landlord end a tenancy to demolish the rental unit, but only if the landlord has all the necessary permits and approvals required by law and intends in good faith to demolish.

The notice must take effect at least 4 months after the tenant receives it, on the day before rent is due, and no earlier than the end of a fixed term. The regulation shortens the period to 3 months only when the owner, a close family member or a buyer will move in, which does not cover demolition. Under section 51, the tenant is entitled to the equal of one month's rent, on or before the effective date. If the stated purpose is not carried out within a reasonable period, the landlord can owe a further 12 months' rent.

Renovating with a tenant in place is a separate process. Under section 49.2, a landlord who needs the unit empty for renovations or repairs must apply to the Residential Tenancy Branch for an order, and the order takes effect no earlier than 4 months after it is made.

Tell Your Insurer Before the House Is Empty

In Coburn v. Family Insurance Solutions, BC's Court of Appeal upheld an insurer's refusal to pay for a fire in a house under renovation, because the policy excluded any loss while the house was "Vacant... for more than thirty (30) consecutive days or in the Course of Construction".

So call your broker before you move out. Ask your broker and your builder which construction policy will cover the house while it is built, and write into the contract who buys it and for how much. Read who covers the house, the site and the people on it before you sign.

The Vacancy Tax While the House Is Being Built

BC's Speculation and Vacancy Tax Act applies in every municipality of the Metro Vancouver Regional District except the Village of Lions Bay, so it covers an empty house in Vancouver. The Province's land under development page (updated June 23, 2026) says owners of property under construction are exempt if reasonable steps are taken without undue delay to develop or renovate it.

The page lists the building activities that count, including applying for financing or a permit, signing design, building or engineering contracts, demolishing the old house, clearing or excavating the site, and building the new home. Keep your permit, contract and invoice dates together for the declaration.

Other Questions People Ask

How much notice do I give a tenant to demolish my house in BC?

At least 4 months after the tenant receives the notice, effective the day before rent is due, under section 49 of the Residential Tenancy Act. You must already have all the necessary permits and approvals.

What compensation does a tenant get when I demolish?

One month's rent, paid on or before the effective date, under section 51(1) of the Act. If the house is not demolished within a reasonable period, section 51(2) can add 12 months' rent.

Can I give notice before my demolition permit is issued?

No. Section 49(6) of the Act requires the landlord to have all the necessary permits and approvals required by law before ending a tenancy to demolish.

Do I pay the speculation and vacancy tax while my house is being rebuilt?

Property under construction is exempt if reasonable steps are taken without undue delay, according to the Province's land under development page. You still have to make the declaration.

Sources

Every rule and figure on this page comes from the pages below, each opened and read on the date shown.

  1. Residential Tenancy Act, SBC 2002, c. 78BC Laws, Province of British Columbia. Checked 2026-11-08. Section 49(2) notice timing, section 49(6) demolition with permits, section 49.2 renovation orders, section 51 compensation.
  2. Residential Tenancy Regulation, B.C. Reg. 477/2003BC Laws, Province of British Columbia. Checked 2026-11-08. Section 42.2: the 3 month period applies only to section 49(3), (4) and (5) notices.
  3. Speculation and Vacancy Tax Act, SBC 2018, c. 46BC Laws, Province of British Columbia. Checked 2026-11-08. The tax applies in municipalities of the Metro Vancouver Regional District other than the Village of Lions Bay.
  4. Coburn v. Family Insurance Solutions Inc., 2014 BCCA 73Court of Appeal for British Columbia. Checked 2026-11-08. The vacancy and course of construction exclusion, quoted from the policy.
  5. Land under development exemptions for the speculation and vacancy taxProvince of British Columbia. Checked 2026-11-08. The construction exemption and the list of building activities (page updated June 23, 2026).

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