B.C. rules take aim at real estate ‘greed’

• The British Columbia government says it will impose regulatory changes to end the “shady” practice of contract flipping to protect sellers and consumers in the province’s hot housing market.

Premier Christy Clark said “pure, naked greed” is driv- ing real estate agents to flip a property multiple times at higher prices before a deal closes, allowing agents to continue making commissions while buyers avoid paying property tax.

Clark said the new rules will require the original seller to provide informed consent for multiple sales and that profits would go back to that seller.

“The way to end that shady practice for greedy people is to take the profit out of it,” Clark said Friday at a news conference in Stanley Park. “That’s how we know we’ll be able to make a difference.”

The premier said t he rules will become part of regulations governing real estate agents and will likely be enforced by the Real Estate Council of B.C. She said she hopes that anyone who breaks the rules will lose their licence to sell real estate.

Clark said the new rules are a “first step,” and could be in place within the next month.

An independent advisory group is investigating socalled real estate contract assignment, and Clark said the province is awaiting recommendations on potential con- flict of interest when a realtor represents both a seller and a buyer in a transaction.

“I know the vast majority of Realtors in British Columbia are conscientious and professional, honest people, but we also know there are a few shady operators, especially in the Vancouver market, that are squeezing people every day and taking advantage.”

Superintendent of Real Estate Carolyn Rogers is leading the advisory group and said in a statement the issue of contract flipping will be part of their investigation. She said they anticipating having additional proposals and recommendations for the council and government to consider.

Finance Minister Mike de Jong and Deputy Premier Rich Coleman are also expected to meet with Vancouver’s mayor to discuss collaborative steps that governments can take to improve housing affordability.

The council did not immediately respond to a request for comment.