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

Real estate agents will need to get seller's consent to transfer a contract, and any profit is to be returned to the seller

New B.C. real estate regulations take effect May 16 to require realtors to get written consent of sellers if they are assigning a home sale to a new buyer.

Changes to the Real Estate Services Act regulations also require realtors to pay any additional profit to the original seller, to stop to a practice dubbed “shadow flipping” that has emerged from a hot Metro Vancouver real estate market.

Finance Minister Mike de Jong also announced changes to the B.C. property purchase tax form, requiring buyers who are not Canadian citizens or permanent residents to state their citizenship. Corporations buying property have to provide names and citizenship of non-Canadian directors, starting in June.

The announcement comes as a committee created by the Real Estate Council of B.C. investigates allegations of misconduct regarding shadow flipping.

De Jong said it would take at least six months to get a sense of how much foreign investment is coming into the B.C. real estate market, and whether it is concentrated in the high-end market or extends to mid-priced properties.

De Jong said he is reluctant to target foreign buyers for a real estate speculation tax, as has been urged by Vancouver council. The government hosted a business delegation from China this week, with more than 200 government and business representatives led by Guangdong province Party Secretary Hu Chunhua.

NDP leader John Horgan said the anti-flipping changes are a step in the right direction, but the government is “slow walking” towards the foreign investor issue as the B.C. Liberal Party reaps millions in donations from Vancouver real estate developers.

In the legislature, de Jong said the opposition was first demanding the government do something about Metro Vancouver properties bought as investment and left vacant, until a survey showed the vacancy rate is lower than it was 12 years ago.

He said Vancouver is joining the ranks of cities such as Sydney, New York and Hong Kong in the global demand for luxury real estate. Rather than try to suppress demand with taxes, which hasn’t worked in other cities, the government wants to see municipalities approve new development and density to increase supply, de Jong said.

 

Just Posted

Manure company causing ‘toxic’ stink at Abbotsford school seeks permit

Property across from King Traditional Elementary cannot operate manure facility without permit

Agassiz Community Gardens hoping to find new home at old McCaffrey school

The society has been looking for a new location since its previous gardens were sold in October

Kent looking to replace Ferny Coombe pool with indoor facility

The facility being built is dependent on grant funding from the province and federal government

Escape room brings ‘out of the box’ activity to Agassiz

AESS alumni and teacher developed the concept to bring teamwork-based entertainment to the town

Prices still rising, Chilliwack real estate back in balanced territory

Local market is steadier compared to points west with higher increase in average sale price

B.C. opioid crisis to get same world-renowned treatment approach as HIV/AIDS

A program that focuses on treatment as prevention will roll out Jan. 17

Vancouver city council endorses free transit for youth

Mayor Kennedy Stewart will write a support letter to TransLink

In limbo: Leftover embryos challenge clinics, couples

Some are outright abandoned by people who quit paying storage fees and other couples struggle with tough decisions

BREAKING: Jury finds man accused of killing B.C. girl, 12, guilty

Twelve-year-old Monica Jack disappeared in May 1978 while riding her bike along a highway in Merritt, B.C.

B.C. government extends coastal log export rules for six months

Premier John Horgan promises reform at loggers’ convention

Lower Mainland pup poisoned by pot on dike

Five-month-old River was unable to walk.

B.C. pair accused of ‘honour-killing’ in India to be extradited within days

Malkit Kaur Sidhu and Surjit Singh Badesha are accused of conspiracy to commit murder

Netflix rejects request to remove Lac-Megantic images from ‘Bird Box’

At least two shows on Netflix’s Canadian platform briefly use actual footage of the 2013 tragedy

Liberals reject Karen Wang’s hope for ‘second chance’ in byelection vs. Singh

Former Burnaby South candidate dropped out after a post on the Chinese social media platform WeChat

Most Read