BC Condo Flipping Registry

 

CONDO FLIPPING REGISTRY 


THE BC Government just announced a Condo Flipping registry that will take into effect Jan 1, 2019, stay tuned as I will discuss all the details.


When I attend presale purchasing events across Metro Vancouver  a large majority of the people there are real estate investors.  With Presales these investors would most likely flip these properties for a small profit.  After all the only investment the investor had to make was to come up with the deposit payment.  


  In the past most buyers  of presales who had the intention of flipping their property may have done so without reporting the capital gains to CRA.   Also the buyers of the presale assignments may have reported the property value incorrectly when it came time for completion.  Some buyers of assignment contracts may have reported the original purchase price not the assignment purchase price to the land title office, thus avoiding the payment of the extra property transfer tax and GST.    With the implementation of this new Condo Flipping Registry this will force the Assignor to report the correct capital gains amount, and the assignee to report the correct purchase price.  The developer will also be forced to collect information for the registry. 


For individuals:


  • Full legal name
  • Date of birth
  • Citizenship information. For individuals who are not Canadian citizens or permanent residents of Canada as defined in the Immigration and Refugee Protection Act, the foreign country or state of citizenship
  • Tax identifiers: Social Insurance Number (SIN) or Individual Tax Number(ITN)
  • Residency status for federal income tax purposes
  • The postal address, and
  • The principal residence address of the individual. If the postal address and the principal residence address are the same, provide it only once
  • Phone number
  • Email address, if applicable


For Corporations: 


If the proposed party to an assignment is a corporation:

  • The legal corporation name
  • The 9-digit business number (BN) assigned by the Canada Revenue Agency (CRA)
  • The head office address
  • Information about an individual who can be contacted on behalf the corporation to answer questions about the assignment agreement. The information about the individual includes:
    • Name
    • Postal Address
    • Phone number
    • Email address, if applicable


Also the developer must collect details about the assignment contract.

  • Date of the purchase agreement
  • The unit number, the strata lot number and the parcel identifier (PID) of the strata lot need to be reported, if ascertainable
  • Date of developer’s consent date to the assignment agreement
  • Effective date of the assignment, if it can be determined, and if different from the developer’s consent date
  • Assignment fee paid to the developer for the consent
  • Purchase price of the strata lot. The purchase price includes any amendments to the purchase agreement or subsequent assignments, including any upgrades or prior “lifts” (the increase in value of the strata lot assigned)
  • Assignment amount. This is the amount payable to the assignor for the assignment and it is commonly referred to as a “lift”
  • Reimbursement of the deposit paid. This is the amount payable to the assignor for the deposit paid to the deposit trustee 

So there you have it.  If you are an assignor or an assignee you need to know about this new condo flipping registry. 


Question of the day, do you think this registration will reduce the amount of presale flipping?  Please leave it in the comments below. I will try my best to personally answer all comments myself.     


For further information on the details of this BC Condo Flipping registry visit the BC Government website here 




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