Buying a Home on Westbank First Nation Land

Most homes on Westbank First Nation (WFN) land are leasehold. You own the house and hold a long-term lease on the land underneath it, rather than owning the land outright. Lease length, taxes, financing and resale rules depend on the specific development, so the details of your lease matter more than the neighbourhood name.

What does leasehold mean on WFN land?

On freehold land in the City of West Kelowna, you own the home and the land on title. On WFN land, you own the home and lease the land for a set term. Communities like Sonoma Pines are leasehold, and the lease details vary from one development to the next.

Instead of a standard BC title search, a WFN purchase works through the WFN land registry. A typical file has a head lease, a sublease and an assignment of that sublease to you. Your lawyer reviews that chain and registers the transfer.

How long are the leases?

Many WFN developments sit on 99-year leases, and some are longer. The leases are registered, and many are pre-paid, so you are usually not writing a rent cheque each month. The number to look for is the years remaining on your specific sublease. A home with 85 years left is a different purchase from a home with 30, both for you and for the lender.

Do I pay Property Transfer Tax or the Speculation Tax?

For most WFN leasehold homes, no. The Speculation and Vacancy Tax does not apply to leased or subleased homes on WFN lands. BC Property Transfer Tax generally does not apply either, since most of these interests are registered in the WFN registry instead of the provincial Land Title Office. On a typical Okanagan purchase, that can mean thousands of dollars you don't pay at closing.

There is one exception worth knowing. At least one neighbourhood on WFN land is registered in both systems, so Property Transfer Tax can apply there. If you would like to know which neighbourhood that is, or whether it affects a home you are looking at, reach out to us and we will walk you through it. Your lawyer should also confirm the details before you remove subjects.

Who do I pay property taxes to?

You pay property tax to Westbank First Nation, not the City of West Kelowna. WFN sets its rates each year with its own budget and collects for the regional and provincial taxing authorities as well. Building permits and approvals also go through WFN Planning and Development, so any renovation plans start there.

Can I get a mortgage on a leasehold home?

Yes, though not every lender or broker works with lease land, so talk to a mortgage broker who does before you start shopping. Lenders look closely at how many years are left on the lease and at the renewal and assignment terms, and many want the lease to run several years past the end of your amortization. Some long, non-cancellable leases on WFN land have been approved for insured mortgages, but eligibility depends on the lease and the lender. In most WFN developments, your mortgage is registered in the WFN land registry, the same place your lease is registered, instead of at the Land Title Office.

How is the buying process different?

The contract is different. WFN purchases use the Westbank First Nation Contract of Purchase and Sale of a Leasehold Interest, because a standard BC contract is written for land that transfers by title. Using the wrong form can leave the parties following a process that never actually transfers anything.

We also do our homework on every property. We pull the city file and read it alongside the seller's disclosure and the lease and registry documents, looking for open permits, unpermitted work, siting problems and anything registered on the property that you should know about before you commit. We fact-check what we find instead of taking it at face value.

What should I check before I make an offer?

• Years remaining on the lease and any renewal terms.
• Whether the sublease allows resale without the landlord's consent, and what fees apply when the home changes hands. Many developments charge an assignment, share transfer or consent fee, and whether the buyer or the seller pays depends on the development. Ask for the details in writing.
• Insurance requirements in the head lease and sublease. Show them to your insurer early.
• Sublease responsibilities, such as maintenance and nuisance rules.
• Any strata or homeowners' association rules, which vary a lot between developments.
• Which utilities serve the home. WFN operates its own water and sewer systems, but electricity, gas and billing vary by development. Some communities, such as Sonoma Pines, use a private utility like Bluestem, and strata or park managers handle some accounts.

What happens when I sell?

You assign your sublease to the next buyer, and the same chain of documents applies. Resale value is tied to the years left on the lease and the terms in the sublease, which is why we read those closely before you buy, not when you list.

Is a leasehold home right for you?

It tends to suit buyers who want to skip the transfer tax and plan to stay a while. Homes on WFN land can also come with lower purchase prices than comparable freehold homes. The trade-offs are a smaller pool of lenders, an assignment fee on some resales, and a value that is tied to the years left on the lease. If you plan to hold the home for decades, a long lease can sit comfortably alongside that. If you might sell in a few years, the remaining term matters even more.

Thinking about buying on WFN land?

We have been handling WFN leasehold purchases and sales for a long time, and none of this is new to us. We know what to look for in the lease, which fees apply in which development, and where problems tend to hide. 

This guide is general information, not legal or financial advice. Lease terms, fees and tax treatment change with the development, so confirm the details for any property with a lawyer who handles WFN leasehold files and with your mortgage professional. Written by Kim Holmes & Crista MacDermott, PREC*, REALTORS® with MacDermott Holmes & Associates, Royal LePage Kelowna. Last updated October 2026.

*Personal Real Estate Corporation