(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

Just Posted

Vernon police service dog aids in arrest of break-and-enter suspect

Heavy police presence results in PSD Jagger finding suspect

Free flights for kids return courtesy Vernon Flying Club

The COPA For Kids event July 13 at Vernon Airport introduces children and teens to aviation

Vernon senior feels trapped in long-term care facility

Rose-Marie Lepodvin says she wants assisted living, but feels trapped in long-term care

Coldstream Fire Department douses vehicle, grass fires

Vehicle catches fire in Cougar Canyon parking lot; two occupants get out safely

Our History In Pictures

Where the news was reported on in Vernon pre-20th century

VIDEO: Acknowledging skeptics, finance minister vows to build Trans Mountain project

Bill Morneau said he recognizes ‘huge amount of anxiety’ in Calgary over future of oil and gas sector

Interior forestry workers ratify five-year contract

It was approved by United Steelworkers Local 1-417, which represents workers in Kamloops, Kelowna

Scorpion gives birth after hitching ride in B.C. woman’s luggage

A Vancouver woman inadvertently brought the animal home from a trip to Cuba

Man surrenders following standoff in Kamloops

Massive police response in Kamloops was in connection with a reported domestic dispute

Penticton woman dies after Riva Ridge Mobile Park fire in May

BC Coroners Service says investigation in progress

B.C. man faces deportation over father’s honour-killing conviction

Father lied to immigration, was later acquitted of charges in Jassi Sidhu’s murder

RCMP allows officers to grow beards

Members can now wear beards and goatees, as long as they’re neatly groomed

Two Kelowna sites rezoned for pot shops

Cannabis retailers closer to reality for Lawrence Avenue, St. Paul Street

Most Read