R
eal estate listings in New Brunswick often display property-tax amounts that are lower than what a new buyer would pay, but Realtors argue this practice isn't misleading. Property taxes can be the second-largest expense after mortgage payments, and the New Brunswick Real Estate Association says its rules require tax information to be displayed for prospective buyers' benefit. However, listings only show current owners' property-tax bills, not what new buyers will pay.

    The association's president, Ryan Davison, said their code requires accurate tax information, which is based on the current year's taxes. But this can be an issue for house shoppers, as many homes for sale belong to owners who pay discounted property taxes that aren't available to new owners. The New Brunswick government has a "spike protection" policy that slows property-tax growth during rapid value increases, but this protection expires after a sale.

    In Moncton, a listing showed an annual property tax bill of $3,471 for a house with a 107% increase in assessed value over four years. However, taxes for a new owner would jump to $4,922, a 41% increase. Realtor.ca listings for 23 houses in Moncton, Dieppe, and Riverview showed spike-protected property tax amounts, with 14 of those homes having full property taxes more than $500 higher than listed.

    Davison said it's the responsibility of individual agents to explain to buyers that property taxes could be higher. However, there is no requirement to provide undiscounted property tax amounts in listings. Davison believes showing current, discounted tax amounts isn't misleading, as long as buyers understand what they're seeing.

    New buyers often aren't aware that property tax bills can jump after a sale. Julia and Konner Bourgeois experienced this when buying their first home in Saint John. Their initial tax bill was $3,126, but it increased to $4,203 after the sale, forcing them to make a lump sum payment and increase monthly payments.

    Saint John real estate agent Rob Dipiero advises buyers to evaluate all expenses, including property taxes, which can add significantly to the cost of owning a home. He warns that if a house carries an expiring property-tax discount, this year's tax bill may not be a useful reference for what a new owner will face or can afford.