(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

Delta artist John Horton named to Order of British Columbia

Honour for significant contributions made to the appreciation and safety of B.C.’s coastal history

Surrey Fire Fighters Charitable Society doing ‘better than we were expecting’ amid COVID-19

At one point, the board thought it might have a donation shortfall of $250,000

Man arrested in ‘after-hours club crackdown’ in Whalley, Surrey RCMP say

Police say they received information about clubs, parties ‘springing up’ at commercial properties

Wrong-way driver triggers multi-vehicle collision on Highway 99 in South Surrey

Police received multiple reports of vehicle heading north in southbound lanes

53 new COVID-19 cases, no new deaths cap off week of high infection rates in B.C.

Roughly 1,500 people are self-isolating because they either have COVID-19 or have been exposed to it

Moving on: Tanev scores 11 seconds into OT as Canucks oust Wild

Vancouver beats Minnesota 5-4 to move into first round of NHL playoffs

FURTHER UPDATE: Body removed from Maple Ridge hotel after large police presence

A large contingent of Mounties were at the Art Infiniti Hotel Friday afternoon and evening

3 Vancouver police officers test positive for COVID after responding to large party

Union president says other officers are self-isolating due to possible exposure

New mothers with COVID-19 should still breastfeed: Canada’s top doctor

Dr. Theresa Tam made the recommendation during World Breastfeeding Awareness Week

Collapse of Nunavut ice shelf ‘like losing a good friend:’ glaciologist

The ice shelf on the northwestern edge of Ellesmere Island has shrunk 43 per cent

PHOTOS: Moving day for 110-year-old Fraser Valley heritage house

Chilliwack heritage house makes 1.7-kilometre journey to new location

Plainclothes Abbotsford police officer deletes cellphone video after drawing gun on innocent man

‘They never asked me what I was doing there, strictly came out with guns, threatening to shoot me’

CRIME STOPPERS: ‘Most wanted’ for Aug. 7

Crime Stoppers’ weekly list based on information provided by police investigators

Most Read