(THE CANADIAN PRESS/Sean Kilpatrick)

B.C. targets below-the-radar condo flippers in first-of-its-kind registry

Developers will have to report identity and citizenship of anyone completing a contract assignment

The B.C. government says it has launched Canada’s first registry aimed at cracking down on pre-sale property flipping and tax evasion in its real estate market.

The Ministry of Finance says the Condo and Strata Assignment Integrity Register will improve fairness and transparency in property transactions.

READ MORE: B.C. changes rules to stop real estate ‘shadow flipping’

Finance Minister Carol James said in a news release on Monday that the register will take “real action to moderate the condo market,” and is already starting to see results in Metro Vancouver.

Condo developers will be required to securely gather and report the identity and citizenship of anyone completing a contract assignment in a project.

A contract assignment occurs when a buyer sells, or “flips,” their purchase contract of a condo to another buyer, often at a higher price, before construction of the building is complete.

Currently flipping can occur without any oversight and the province says the practice has been a factor in raising real estate prices while facilitating tax evasion when capital gains and other taxes are not applied.

“For too long, speculators and tax evaders have been taking advantage of loopholes in our real estate market, driving up prices and shutting British Columbians out of the market,” James said.

The finance ministry says it’s unknown how many pre-sale property flips occur each year because the transactions aren’t reported.

Developers are now required to collect and record assignment information and file a report each quarter, with the first due April 30, covering the period from Jan. 1 to March 31, 2019.

“The B.C. government will use this information to ensure that people who assign condos are paying the appropriate income tax, capital gains and property transfer tax,” the release says.

The filing fee per assignment is $195, which the government says is a small fraction of the cost of flipping a condo unit.

The Canadian Press

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Social media a blessing and a curse during time of crisis: B.C. communication expert

‘In moments of crisis, fear is very real and palpable,’ says SFU’s Peter Chow-White

COVID-19: Isolation exemptions to frontline workers a danger to patients, say Island Health employees

Staff exempt from self-isolation upon return from international travel according to Island Health

B.C. COVID-19 contact restrictions working, Dr. Bonnie Henry says

’Not out of the woods yet’ as next two weeks are critical

‘I just don’t get it’, Wash Me on Ludlow suffers thefts and abuse of services

Owner Michelle Nischi is concerned for her health and her business

Ladysmith businesses carry on in the time of COVID-19

Local businesses struggle to stay open and serve the public

Ongoing list of Ladysmith COVID-19 cancellations and closures

Everything in Ladysmith that has been impacted by COVID-19

Evening world update: U.S. restrictions extended 30 days; NY deaths near 1,000

Comprehensive world update, with the latest developments in the COVID-19 crisis

‘It’s up to us: Recently-returned B.C. couple urges Canadians to take COVID-19 seriously

Garrett Kucher and Tory Apostoliuk make it home after almost a week of lockdown in Spain

‘Nothing concrete’: Tenants, landlords lack details after B.C. unveils COVID-19 rental aid

Single mom in Golden says she’s already going to the food bank after being laid off

Canada will make sure masks sent by China meet quality standards: Trudeau

Chinese Embassy tweeted that China was sending 30,000 medical masks along with gowns, gloves and goggles

B.C. issues guidelines about distancing, reusable bags to grocery stores amid COVID-19

Hand sanitizer and markers to keep lines two metres are apart are needed, province says

No plans to call in military right now to enforce COVID-19 quarantine: Trudeau

Trudeau unveils $7.5M for Kids Help Phone, $9M for vulnerable seniors amid COVID-19

QUIZ: How much do you know about the Olympics?

Put your knowledge to the test with these 12 questions

Most Read