By Jennifer Lynch, VP, Professional Services

If you're working with buyers considering purchasing a property for the short-term or sellers looking to sell within the first 730 days of ownership, there's an important new tax you need to know about. Starting January 1, 2025, the BC Home Flipping Tax will apply to certain property transactions, and as a REALTOR®, it's important to understand how it could impact your clients' decisions. Here's a quick breakdown of what you need to know. 

The BC Home Flipping Tax applies to income from selling or assigning a property within the first two years (730 days) of ownership. This includes properties bought before January 1, 2025, if they are sold on or after that date and owned for less than two years, unless the property is exempt. 

This new tax is separate from the federal property flipping tax and is calculated independently of federal or provincial income tax systems. 

Overview of Key Points for REALTORS®

1. Taxable Transactions 
The BC Home Flipping Tax generally applies to income earned from the sale of:  

• Properties with a housing unit. Properties zoned for residential use. 

• The right to acquire the above properties, such as the assignment of a purchase contract for a pre-build condo building 

2. Tax Rates and Ownership Periods 

• Properties sold within 365 days are subject to a 20 per cent tax on the profit earned. 

• The tax rate decreases gradually until the 730-day mark, at which point the tax no longer applies. 

3. Exemptions 

• Certain exemptions may apply under the BC Home Flipping Tax.  

• Exemptions may either apply automatically or require filing a BC Home Flipping Tax return, depending on the specific exemption. 

• Sellers must file a return within 90 days of the sale, if they are subject to the tax or if they are claiming exemptions that require filing. 

• Details are available here. 

How REALTORS® Can Support Clients 

REALTORS® play an important role in raising awareness and empowering clients to make informed decisions. Here are some ways REALTORS® can effectively support consumers: 

• Be aware of the BC Home Flipping Tax and its potential impact on transactions. 

• If clients are considering purchasing a property for short-term holding or selling a property within two years of purchase, encourage them to consult with a tax professional. This will help them understand how applicable taxes may affect their specific transaction. 

• Provide links to official resources, such as the BC Home Flipping Tax page on the BC Government website for accurate and up-to-date information. 

Staying Proactive in Your Role 

The introduction of the BC Home Flipping Tax highlights the importance of staying informed about regulatory changes and the potential impacts on clients. 

While REALTORS® should not provide tax or legal advice, they can direct clients to official BC Government resources for up-to-date information here. To help clients fully understand their obligations and explore any potential exemptions, REALTORS® should also recommend consulting qualified tax and legal professionals.

By keeping up to date on regulations, REALTORS® add significant value by equipping clients with the knowledge and resources they need to navigate complex real estate matters and achieve their goals. 

Each year the REALTORS® of Royal Pacific Realty do a Christmas campaign to show appreciation for our support staff. Contributions can be made until January 31, 2025. 

Click the following link to fill out and submit the online form:

• 2024 RP Staff Appreciation Fund Campaign

Forms are also available at your Royal Pacific Realty office.

Thank you for your participation!

DATE: Saturday Oct 12, 2024

TIME: 11:30pm- 2:30pm (12pm light refreshments/prize draw)

LOCATION: 2695 Duke Street

REGISTER : https://forms.gle/hNRoRiJJ9LXiarAPA

BRING BUSINESS CARD FOR PRIZE DRAW

COMMISSION: Flat 1.5% + $5,000 bonus (offer up to Oct 26)

Kindly click to RSVP

As part of our ongoing commitment to elevating professionalism and maintaining the integrity of our MLS® system, Greater Vancouver REALTORS’® (GVR) MLS® team is now proactively auditing MLS® listings.

Our aim is to reduce member frustration and increase MLS® data accuracy.

What you need to know

GVR’s MLS® team will conduct audits to verify that listings meet the standards set by the Rules of Cooperation, starting with ensuring all necessary documents and pictures are uploaded within 24 hours.

As we refine this process, we’ll expand the scope of our audits to address other issues such as missing data, incorrectly completed fields, and violations in remarks.

Action required

If you receive an audit email, you’re required to respond and resolve the issue within 24 hours. If you don’t respond, we’ll “cancel protect” your listing, meaning it won’t be visible until its expiry date, or the issue is resolved.

Why are we doing this?

When surveyed, most common complaints among members revolve around incomplete or inaccurate information on MLS® listings.

The MLS® system is a critical tool for Comparative Market Analyses (CMAs) and for generating accurate industry statistics.

And it’s not just members who are affected.

When listings are posted with missing, inaccurate, or incomplete information, like incorrect square footage or missing strata documents, it undermines public trust in our profession and the value of the MLS®.

We believe that by proactively addressing these issues, we can uphold high standards and maintain the reliability of the MLS® as a resource for professionals and the public.

What can you do?

1. Meet your obligations: Ensure all your listings comply with MLS® rules. Complete data fields, upload required documents, and double check the accuracy of the information you provide.

2. Use the corrections button: If you notice rule violations in other listings, please continue to notify us by using the corrections button. Your vigilance helps maintain the system’s integrity.

3. Respond promptly to audit requests: If you receive an audit notification, make it a priority to resolve the issue and communicate with our staff within 24 hours.

A commitment to data quality

GVR is committed to improving data quality across the board. We’re allocating more resources to monitor and ensure that all MLS® listings meet the highest standards.

Section 3.06 of the Rules of Cooperation clearly states, "It is the responsibility of every member to provide clear, accurate, and factual information regarding any listing."

This is a responsibility we all share, and we cannot achieve success without your cooperation.

By working together, we can create a stronger, more reliable MLS® system and continue to enhance the professionalism of our industry.

Thank you for your ongoing support and dedication to maintaining the high standards that benefit us all.

The BC Real Estate Association (BCREA) is updating many of their Standard Forms on November 12 to better reflect current practices and requirements.

One critical change REALTORS® should note is the update to the Contract of Purchase and Sale - Residential that will now include GST in the purchase price, if it's applicable.

Updated forms include:

• Buyer Acknowledgement of Advice, Rights, and Benefits

• Contract of Purchase and Sale for Business Assets Including Real Property

• Contract of Purchase and Sale of a Leasehold Interest in First Nations Reserve Lands (Third Party Approval Not Required)

• Contract of Purchase and Sale of a Leasehold Interest in First Nations Reserve Lands (Third Party Approval Required)

• Contract of Purchase and Sale of a Manufactured Home on a Rental Site

• Contract of Purchase and Sale – Residential

• Offer to Lease (Commercial)

• Offer to Lease Addendum / Amendment

• Privacy Notice and Consent Form

These new forms will be available on WEBForms on November 12.

What’s changing?

Here’s a quick overview of what’s changing:

Buyer Acknowledgement of Advice, Rights, and Benefits

The Buyer’s Acknowledgement of Information – Recommended Conditions form will be renamed to Buyer Acknowledgement of Advice, Rights, and Benefits to better reflect its contents.

It'll also include new language addressing risks associated with making unconditional offers before securing financing, along with better documentation of agent-to-buyer disclosures.

Contract of Purchase and Sale for Business Assets Including Real Property

The Contract of Purchase and Sale for Business Assets form will be renamed to Contract of Purchase and Sale for Business Assets Including Real Property. It'll include a provision requiring real property trading services to use the form.

Additionally, "Section 28: GST" will be updated to include references to the Provincial Sales Tax Act, with the section now titled "Section 28: GST and PST."

Contract of Purchase and Sale of a Leasehold Interest in First Nations Reserve Lands

Updates to the Contract of Purchase and Sale of a Leasehold Interest in First Nations Reserve Lands will include the addition of a GST disclosure, removal of GST from customary costs shared by the buyer and seller, and the inclusion of default language specifying GST is included in the purchase price.

The form will also reflect a broader definition of member boards to include associations. There are two versions of this contract: one for cases where third-party approval is required and another where it's not.

Contract of Purchase and Sale of a Manufactured Home on a Rental Site

The updated form will include a GST disclosure, removal of GST from customary costs, and default language for including GST in the purchase price.

It'll also include a revised definition of member boards and a reformatted presentation of sections related to offers and acceptance.

Contract of Purchase and Sale – Residential

This form will be updated with the same revised definition of member boards, with the addition of a strengthened notice regarding the buyer’s rescission rights.

“Section 1: Purchase Price” will also be updated to include “GST” if applicable. A corresponding change (including the new “GST disclosure”) will be made to the information page. 

Adding that GST is included in the “Purchase Price”, if applicable, by default is a big change that Realtors must draw to the attention of buyers and sellers. Realtors should advise buyers and sellers to obtain professional tax and accounting advice regarding how this will affect their out-of-pocket cost and net proceeds. Realtors should also advise clients that this default position can be negotiated between the parties along with other terms and conditions in the CPS. Expanding GST disclosures on the information page helps increase consumer understanding of the implications of GST and that additional professional advice may be required to determine GST applicability, which might result in added costs.

It'll also be reformatted, with clearer language and new initial boxes for the rescission notice section.

Offer to Lease (Commercial)

The Offer to Lease form will be renamed to Offer to Lease (Commercial) to better reflect its intended commercial use. It'll also specify GST as an additional cost where applicable.

Offer to Lease Addendum/Amendment

The Offer to Lease Addendum will be renamed to Offer to Lease Addendum/Amendment to reflect its dual use for both amendments and addenda.

Privacy Notice and Consent

This form will be updated to include "brokerage" in the list of entities where information may be disclosed and will also broaden the definition of member boards to include associations.

Help resources

• BCREA Standard Forms Pre-Launch Package (includes detailed information on all changes)

• New Standard Forms launch resources page

• All BCREA Standard Forms resources

• Standard Forms toolkit

• Professional Development courses

VANCOUVER, BC – October 2, 2024 – Home sales registered on the MLS® in Metro Vancouver1 declined 3.8 per cent year over year in September, suggesting recent reductions in borrowing costs are having a limited effect in spurring demand so far.

Greater Vancouver REALTORS® (GVR) reports that residential sales in the region totalled 1,852 in September 2024, a 3.8 per cent decrease from the 1,926 sales recorded in September 2023. This was 26 per cent below the 10-year seasonal average (2,502).

There were 6,144 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in September 2024. This represents a 12.8 per cent increase compared to the 5,446 properties listed in September 2023. This was also 16.7 per cent above the 10-year seasonal average (5,266).

The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 14,932, a 31.2 per cent increase compared to September 2023 (11,382). This is 24.2 per cent above the 10-year seasonal average (12,027).

Across all detached, attached and apartment property types, the sales-to-active listings ratio for September 2024 is 12.8 per cent. By property type, the ratio is 9.1 per cent for detached homes, 16.9 per cent for attached, and 14.6 per cent for apartments.

GVR Stats Package for September 2024

SURREY, BC – With active inventories hitting levels not seen in 10 years and sales 30 per cent below the 10year average, Fraser Valley real estate is building towards a buyer’s market if sales continue to lag.

The Fraser Valley Real Estate Board recorded 982 sales in September, down by eight per cent over August and by more than 10 per cent over September 2023. Again, seasonally adjusted sales were the second slowest in a decade in the Fraser Valley.

New listings rose in September, up 21 per cent to 3,352, an increase of 17 per cent year-over-year. Overall inventory increased five per cent from August to September to 9,045, up 39 per cent over last year. The combination of declining sales and rising inventories has helped to create balanced, and in some cases, buyers’, market conditions in the Fraser Valley.

Across the Fraser Valley in September, the average number of days to sell a single-family detached home was 35, while for a condo it was 37. Townhomes took, on average, 30 days to sell.

Benchmark prices in the Fraser Valley dipped again in September, with the composite Benchmark price down 1.4 per cent to $978,800.

FVREB Stats Package for September 2024

The writ dropped on Saturday and the lead-up to the BC election is officially underway. I’m writing to you today to outline the details of the pre-election campaign we are launching at BCREA.

As a nonpartisan association, we do not endorse one party over another. However, we take it upon ourselves to bring attention to important issues within the housing space and work to influence the public and media to ensure relevant housing questions are being asked.

You can read about our five-point election platform on the BCREA website here: 2024 Five-Pillar Election Issues.

We’re focusing on five issues of critical concern:
Issue 1: Expansion of Provincial Trades Education
Issue 2: Housing Tax Reform
Issue 3: Short-Term Rentals
Issue 4: Establishing a Permanent Housing Roundtable
Issue 5: Remaining Problems with New Notice to End Tenancy Rules

We’ll be tackling these issues in the public sphere leading up to the election with a series of targeted opinion articles in the press over the coming weeks and issuing press releases to attract media on an issue-by-issue basis.

In addition, we’re running current advertising on Global Television and CKNW Radio, which brand BCREA as a resource for public real estate information. In October, we’ll move into election messaging on multiple radio stations (CKNW 980, Rock 101.1, 99.3 CFOX, and AM730) and launch a digital media campaign.

In short, you’ll be seeing a lot of BCREA and our key election issues in the media over the coming weeks. I urge you to get involved and amplify some of this messaging on your social channels and in discussions within your community.

If you have any questions or concerns, you can reach out to me directly at thargreaves@bcrea.bc.ca.

Trevor Hargreaves
Senior VP, Policy and Research 
604.742.2798 

Paragon Connect is here! The new mobile app that puts Paragon in the palm of your hand is now available as a free download from the Apple App and Google Play stores:

• Apple devices

• Android devices

Getting started with Paragon Connect

Learn how to use Paragon Connect today by reviewing our quick start guide. 

You can also review a library of video resources covering:

• The Paragon Connect dashboard

• Listing input maintenance

• Searches

• Miscellaneous tasks

Webinars and office training coming this fall

Stay tuned for more training opportunities later this year, including free webinars starting in October and in-office presentations starting in November. 

We’ll share more details and registration links when they’re ready.

What is Paragon Connect?

Paragon Connect offers the same experience, including all the functionality of Paragon’s desktop platform, on virtually any tablet or mobile device. It’s driven by the data in Paragon’s web servers and contains the latest Paragon data and everything you’d find on Paragon MLS®. 

Manage listings, search for properties, set up Hotsheets – you can do it all!

Anything you change in Paragon Connect, will also update in the traditional Paragon system, so you can switch between platforms from the office to the road. 

It also works in conjunction with the Collab Centre and all its third-party integrations. You’ll get greater insight into buyer and seller activity, for example how often seller sites are viewed, or which listings buyers like.

Questions?

Contact the Help Desk at 604-730-3020 or support@gvrealtors.ca. 

Thank you to everyone who attended Sing’s birthday lunch.

Photos:
https://drive.google.com/drive/folders/19RTlIQwKmrX2pgVV9dX3t6TyhOqs67Z7

Video:
https://www.youtube.com/watch?v=ozJAu8JeOo4 

SURREY, BC – Sluggish seasonally-adjusted sales and a continued rise in inventory has the Fraser Valley market slowly shifting to favour buyers.

The Fraser Valley Real Estate Board recorded 1,230 sales in July, down by seven per cent over last month and down by 26 per cent over the 10-year seasonal average.

Inventory levels in the Fraser Valley reached a 10-year seasonally adjusted high in July with active listings at 8,731, up 5 per cent over June and 41 per cent higher than July 2023.

New listings were flat in July, down by less than half a per cent from June, to 3,412. With a sales-to-active listings ratio of 14 per cent, overall market conditions are balanced. The market is considered balanced when the ratio is between 12 per cent and 20 per cent.

Download: FVREB Stats Package (July 2024)