Keeping in line with one of its election pledges to create transparency and prevent tax evasion in BC’s real estate industry, the BC government recently launched the “Condo and Strata Assignment Integrity Registrar”, which will scrutinize condo sales more closely.
Beginning January 1, 2019, developers who sell strata lots in development properties are required to:
– Include terms and a notice in their contracts to inform buyers of the new collection and reporting requirements.
– Collect information such as the name and social insurance number or business information of the parties involved.
– Report this information to the online registry.
Developers who sell condominiums will have to:
- testing the bullets
- Inform buyers of the new reporting requirements.
- Collect the buyers’ names and social insurance numbers or if it is a business, the relevant business information.
- Correctly report this information to the online registry.
During the launch of the new registry, Carole James the current Minister of Finance said, “We will not allow real estate speculators and tax frauds to take advantage of loopholes in the system any longer, and this register sends a clear message. The days of avoiding taxes through condo flipping are over. This register will help bring fairness and integrity back to B.C.’s real estate market, so that people can afford homes in the communities where they live and work.”
When in operation, the new registry will provide information to the CRA, so that transactions will be traced back to the responsible parties ensuring the correct payment of taxes. Buyers will be forced to accurately report the final purchase price of the unit they buy and pay the correct property transfer tax.
The current system allows the flipping of condos without a centralized record of such transactions, allowing unscrupulous real estate speculators to evade paying taxes on the profits made from the sale. The flipping has contributed to artificial price increases.
If you are in the market for a luxury home, we have been selling luxury homes for over 27 years. Our knowledge and expertise of the Vancouver real estate market makes us one of the most prominent real estate companies in Vancouver. Contact us or call us on 604 913 1000.