Shadow-flipping has been the subject of intense media attention over the past few months, and there has been increasing pressure on the B.C. government to address the issue. The government responded on May 9, 2016 by unveiling new regulations aimed at combatting the practice. The regulations, issued pursuant to the Real Estate Services Act, come into effect today.
What is shadow-flipping?
Shadow-flipping a property involves the assignment of a purchase contract by a purchaser to a third party for a fee, often on multiple occasions and for increasingly higher fees. There is, of course, nothing wrong with entering into … Continue Reading
As a municipal and planning lawyer in Ontario I am often asked by real estate counsel what an “Occupancy Permit” or “Certificate of Occupancy” is, whether they are the same thing, and how they work. This is a general short answer to those questions for quick reference.… Continue Reading
In our previous post of February 29 (co-authored by Conrad Rego and Patrick Beechinor) we discussed the implications of the increase in B.C. property transfer tax from 2% to 3% on that portion of a property’s value which exceeds $2 million. We also noted that effective in the Spring, the names and addresses of all beneficiaries of bare trustees are to be disclosed by the transferee upon transfer to any bare trustee. Though no reason was given by the Province for the requirement for beneficiary disclosure, industry participants have surmised that the disclosure may be a precursor for collecting property … Continue Reading