Condo contract rules target B.C. property flippers

Condo contract rules target B.C. property flippers

Regulations to prevent property transfer tax evasion

The B.C. government is changing real estate laws in an effort to prevent flipping of condos from one buyer to another before they are built.

Finance Minister Carole James presented legislation Tuesday to require real estate developers to collect and report information on pre-sale condo assignments, to enforce the collection of property transfer tax on buyers.

“For too long, people who resell condos before they have been built have been inflating real estate prices, without necessarily paying taxes on their gains,” James said. “We are making it fairer for people who want to buy a condo, by making sure those who flip pre-sale condos pay their fair share.”

James said the information will not be publicly available, but will be shared with the Canada Revenue Agency, to make sure that capital gains tax as well as provincial property taxes are paid.

BC legislatureProperty values