On November 5, 2018, the Government of BC introduced new regulations for presale condo and strata assignments, including new disclosure requirements for developers and the establishment of the Condo Strata Assignment Integrity Register (CSAIR).
Beginning January 1, 2019, developers will be required to:
- include specific terms and notices in their pre-sale contracts notifying buyers of the new requirements
- collect identity and contact information of all individual and/or corporate parties to the assignment, details on the terms of the assignment agreement and amounts paid for the assignment
- report the collected information to the CSAIR
The CSAIR will be managed by the Land Title and Survey Authority of BC, and serve as a database of information that will be shared with provincial and federal authorities, as well as the Canada Revenue Agency to ensure applicable taxes are correctly assessed and paid.
Developers that will be marketing and selling strata units in the new year must ensure:
- they collect all required information from assignors and assignees prior to approving any assignments
- their purchase agreements and disclosure statements comply with the new requirements
It is important to note that the term “assignment” is being broadly defined as any change in purchaser.
Developers who are found to be non-compliant with the new regulations could face serious fines and penalties. The first reporting period ends March 31, 2019 and the first reports are due April 30, 2019. For more details, please see this Government of BC webpage.
For further information and resources on insurance and risk management for property developers and managers, please contact a CapriCMW Risk Advisor.