Fraser Valley sellers see deals collapse after new foreign tax announced

On July 28, the BC legislature passed Bill 28 – Miscellaneous Statutes (Housing Priorities Initiatives) Amendment Act, introducing an additional 15 per cent Property Transfer Tax intended to deter foreign investment into the Metro Vancouver region.

The tax, which takes effect today on August 2 and is due when the sale is registered, has not protected deals that are firm but have not yet completed, resulting in a number of foreign buyers backing out of their agreement.

“Consider the local seller who has proceeded with a deal involving a foreign buyer, turning down other offers and putting the work in, now being left out to dry after their arranged buyer backs out due to the tax. This impacts their next home purchase, and those buyers and sellers along the line,” said Charles Wiebe, President of the Fraser Valley Real Estate Board.

“It is unfortunate that, in the wake of the most complex and volatile market we’ve seen, our government has chosen a path that, at this time, will bring significant distress to consumers both local and abroad rather than nuanced solutions.”

The Board has received numerous messages of frustration from members about Canadian clients who have been negatively affected by the hasty implementation of Bill 28. President Charles Wiebe and CEO Rob Philipp have sent a letter to Finance Minister Mike de Jong relaying those messages as well as the Board’s concerns.

Fraser Valley Real Estate Board Aug 2 2016