BC government passes foreign buyer tax; ignores calls to exempt accepted agreements
The BC legislature passed legislation last night that institutes the foreign buyer tax. Real Estate Board of Greater Vancouver President Dan Morrison issued the following statement on this development:
"Hundreds of British Columbians head into the BC Day long weekend facing stress and uncertainty concerning the largest financial transaction of their lives because of the provincial government's abrupt intervention into the Metro Vancouver housing market this week.
“The Premier’s decision not to exempt transactions where home sellers have an accepted contract in place, with a non-Canadian buyer, that will not close before August 2 is needlessly causing real harm to real people. Our members are scrambling to try and help people understand how their personal and financial situations have been impacted.
"While it’s the government’s prerogative to implement taxes, people deserve to be treated fairly. They have a right to understand the cost they’re expected to pay when they enter into a legal agreement.”
The real estate industry is a key economic driver in British Columbia. In 2015, 42,326 homes changed ownership in the Board’s area, generating $2.7 billion in economic spin-off activity and an estimated 19,000 jobs. The total dollar value of residential sales transacted through the MLS® system in Greater Vancouver totalled $39 billion in 2015.
The Real Estate Board of Greater Vancouver is an association representing more than 12,800 REALTORS® and their companies. The Board provides a variety of member services, including the Multiple Listing Service®.