Real estate developers will be required to collect and report information on pre-sale condo assignments if proposed laws are passed.
The British Columbia government wants to crackdown on tax evasion in the province and the new legislation will give local governments the powers to address the issue.
“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,” said Carole James, Minister of Finance. “We are making it fairer for people who want to buy a condo, by making sure those who flip pre-sale condos are paying their fair share.”
The changes to the Real Estate Development Marketing Act will mean developers adding terms to their contracts informing buyers of the requirements to report their details to the provincial administrator designated under the Property Transfer Tax Act.