(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

RCMP the best option for West Shore policing, mayors say

West Shore municipalities funding more officers and civilians at local detachment

Souper Bowls cook up support for Victoria youth

Youth Empowerment Society fundraising event set for April 4 at Crystal Gardens

Victoria Royals look ahead to Game 3 in playoff series

Best of seven series tied 1-1 after weekend play

BC Ferries warns of short Tsawwassen inconvenience, sailing times not affected

Line painting scheduled overnight between Tuesday, March 26 and Wednesday, March 27

Victoria producer’s docu-drama nominated at Canadian Screen Awards

1491: The Untold Story of the Americas Before Columbus tells history from Indigneous perspective

Edmonton judge rules Omar Khadr’s sentence has expired

Eight-year sentence imposed in 2010 would have ended last October had Khadr remained in custody

Kamloops chamber of commerce director let go after controversial Facebook posts

Facebook account had derogatory comments about Muslims, Justin Trudeau

B.C. RCMP officer cleared after Taser incident seriously injures woman

Woman with knives refused to comply with orders therefore officer used appropriate level of force

‘Bikinishe’ swimwear retailer prompts Better Business Bureau warning

Watchdog has gotten dozens of complaints about company, which has been using fake Vancouver address

Woman wants Tofino to get a nude beach

“They may enjoy a surf and then walk around naked and just be free.”

Ice climbers scale Canada’s tallest waterfall on Vancouver Island

Ice climbers Chris Jensen, Will Gadd and Peter Hoang made history

Sparks fly as SUV speeds wrong way down Highway 1 trying to flee RCMP

Captured on video, the vehicle headed westbound against oncoming traffic before crashing

Fundraising campaign launched for man caught in SilverStar avalanche

In only two days, the GoFundMe surpassed its $15,000 goal

B.C. doctor fined $5,000 for accessing records of woman pregnant with his child

Doctor admits to accessing records of the woman carrying his child

Most Read