B.C. tightens real estate rules to protect sellers from contract flipping
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VICTORIA — The British Columbia government is moving to protect property owners from predatory conduct in the real estate market by stopping so-called contract flipping without the sellers consent.
Finance Minister Mike de Jong says new rules starting May 16 will require property offers to include two separate terms dealing with contract assignments in pending deals.
He says the rules require real estate agents to include the consent of the seller to transfer the contract to another buyer and spells out that profits from the contract change must go back to the original seller.
De Jong says the changes are designed to prevent situations where a buyer profits by selling a home at a higher price before the closing date of the original sale.
Premier Christy Clark has said “pure, naked greed” is driving real estate agents to flip a property multiple times at higher prices before a deal closes, allowing agents to continue making commissions while buyers avoid paying the property purchase tax.
De Jong says the government is also amending property transfer tax forms to collect data about the country of origin of people buying real estate in B.C.
The Canadian Press
©2016 The Canadian Press
