The British Columbia Real Estate Association (BCREA) says it supports new requirements for real estate contracts that were introduced after a firestorm of controversy erupted over assignment sales.
As of May 16, the government requires contracts prepared by real estate licensees to include clauses stating that the contract cannot be assigned without the written consent of the seller, and that any profit from an assignment goes to the initial seller. Clients can instruct licensees to omit or change the clauses.
“Real estate consumers now have a tool to help them decide whether they want their contracts to be assignable,” says BCREA president Deanna Horn. “Like many other provisions in the contract, buyers and sellers have the option of keeping the new paragraph, changing it or striking it out completely – but at least the conversation is more likely to happen now.”
B.C. Minister of Finance Mike de Jong also announced that, starting in June, the provincial government will begin collecting citizenship data of real estate owners through the Property Transfer Tax form.
“BCREA is pleased that the government will collect this information, in which there is obviously a lot of public interest,” says BCREA CEO Robert Laing. “Strong policy is based on solid information, and we look forward to learning more about this aspect of the real estate market.”
