The British Columbia government this week launched Canada’s first registry aimed at cracking down on pre-sale property flipping and tax evasion in B.C.’s real estate market.
The Ministry of Finance says the Condo and Strata Assignment Integrity Register will improve fairness and transparency in property transactions.
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.
This means tax evaders and speculators who hoped to make a quick buck by flipping their yet-to-be-built condos will be out of luck, that is until a new loophole is discovered. -CINEWS