NDP calls on province to investigate Metro Vancouver realtors
Posted February 8, 2016 3:35 pm.
Last Updated February 9, 2016 6:25 am.
This article is more than 5 years old.
VANCOUVER (NEWS 1130) – The provincial NDP is calling for a formal investigation into claims of tax evasion and insider trading in Metro Vancouver’s real estate market. According to the NDP’s housing critic David Eby, the province could be losing out on hundreds of millions of dollars in tax revenue because of shady realtors.
Eby claims several sources have told him that some realtors have been avoiding property transfer and capital gains taxes while exploiting a clause that allows for a series of home flips.
“The original seller may not be aware this is happening. They’ve sold their home and they’ve moved on. So who is investigating and who is detecting it? These matters need to be thoroughly canvassed by the provincial government.”
Eby adds real estate agents have been helping clients hide where money is coming from by putting the broker’s address instead of the purchaser’s address on FINTRAC forms.
“Realtors are allowing, in some cases, their clients to use their broker address, rather than their own address when filling out federal government anti-money laundering forms. This has the effect of lowering the perceived risk of the money coming into Canada from the perspective of the investigating agency.”
Eby says the practices are driving up housing costs for British Columbians. The MLA for Vancouver Point Grey has contacted the Real Estate Council of BC, but he’s not satisfied anything is being done about the concerns. He plans to take the issue up in the legislature, when it resumes tomorrow.
The call for an investigation comes after media reports allege some realtors and investors are exploiting a clause in contracts that allows for the repeated sale of a home before the closing date, increasing the final price by hundreds of thousands.
The Real Estate Board of Greater Vancouver has sent a message to its members:
Dear member,
The Real Estate Board of Greater #Vancouver sends message to members, expressing disappointment in realtors approaching assignment sales. Looking into what investigative action may be required.
Media reports this weekend have raised concerns about how some individuals within our profession are approaching assignment sales.
A provincial politician has called for a government investigation into these practices.
I’m troubled by these allegations and I know many of you are as well.
I’m working closely with our Communication department to speak with the media on this issue.
It’s important that the media and public know about the high standards that exist in our profession and the rigorous processes we have for investigating alleged breaches of these standards.
Our Professional Standards department is monitoring this situation to determine what investigative action may be required.
I’ll continue to update you on this situation as we learn more.
Sincerely,
Darcy McLeod
President
Real Estate Board of Greater Vancouver
Liberals respond to the calls
It seems Eby’s calls for a formal investigation have been answered.
Liberal MLA Peter Fassbender says the Real Estate Council will form an independent committee to look into the claims.
“They are committed to bringing forward recommendations to increase the councils enforcement and oversight of non-disclosure by licensees who are investing in properties.”
Fassbender expects the council will announce the committee members soon.