VANCOUVER — The B.C. government says it will impose regulatory changes to end the "shady" practice of contract flipping to protect sellers and consumers in the province's hot housing market.
Premier Christy Clark says "pure, naked greed" is driving real estate agents to flip a property multiple times as the price goes up, allowing agents to continue making commissions while buyers avoid paying property tax.
Clark tells the government is closing a loophole around the practice of contract assignments that will demand sellers not only give consent to any assignment put in place, but must give informed consent. She says the new rules will require the original seller to provide informed consent for multiple sales and that profits would go back to that seller.
The premier says she hopes that anyone who breaks the rules with what the government calls a predatory practice will lose their licence to sell real estate.
The Real Estate Council is investigating so-called real estate contract assignment, and Clark says the province is awaiting recommendations on potential conflict of interest when a Realtor represents both a seller and a buyer in a transaction.
Finance Minister Mike de Jong and Deputy Premier Rich Coleman are also expected to meet with Vancouver's mayor to discuss collaborative steps that governments can take to improve housing affordability.
Clark also says the province will discuss ways to increase housing supply.
