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.

 

Surrey North Delta Leader

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

Just Posted

PHOTOS: The day 28,000 Lollapalooza-goers rocked Cloverdale in 1994

Fans share memories of drugs, bad Smashing Pumpkins, Nick Cave walk-off and ‘letdown’ of Surrey date

Surrey veteran feels pinch from COVID-19 after cancelled surgery

Caught between two countries, and low income, soldier feels he’s been forgotten

Surrey parents, students navigate remote learning during COVID-19

The Surrey school district teachers are slowly rolling out plans for new way of educating

Two people fined for trying to re-sell N95 and surgical masks in Delta

Police confiscated over 5,000 masks and are working with Fraser Health to see them put to good use

Peace Arch News ad sparks discussion about value of community newspapers

White Rock resident hopes front-page note shines light on revenue loss during COVID-19 crisis

VIDEO: ‘Used gloves and masks go in the garbage,’ says irked B.C. mayor

Health officials have said single-use gloves won’t do much to curb the spread of COVID-19

Sex workers face new risks during COVID-19 pandemic

‘Desperation has kicked in’ for vulnerable, undocumented workers unable to access help

Unclear if Cowichan couple refusing to self-isolate will face penalty

No fines or charges have been laid to date, including Cowichan couple who won’t self isolate

COVID-19: Postponed surgeries will be done, B.C. health minister says

Contract with private surgical clinic to help clear backlog

Vancouver man, 21, charged after mother found dead in Squamish home

Ryan Grantham, 21, has been charged with second-degree murder

Fraser Valley’s tulips fields off limits to visitors due to COVID-19

Abbotsford and Chilliwack tulip farmers have announced their festival season won’t go ahead

Don’t stop going to the doctor, just do it virtually: B.C. association

Doctors encourage patients to access telephone, online visits

Most Read