The provincial NDP is calling for an investigation on Metro Vancouver realtors based on claims of tax evasion and insider trading.
The NDP’s housing critic David Eby says due to shady realtors—the province could potentially be losing out on hundreds of millions of dollars in tax revenue.
Eby claims that multiple sources have told him some realtors have been avoiding property transfer and capital gains taxes. He adds that the original seller may not even be aware of this happening because they’ve sold it and moved on. He believes it is up to the provincial government to further investigate these matters.
Eby also mentions that realtors have allowed their clients to use their broker address, rather than their own address when filling out federal government anti-money laundering forms. This gives the effect of lowering the risk of money coming into the country—from the investigating agencies viewpoint.
In turn, the housing costs are then being increased across British Columbia.
A call to investigate the issue is in play after media reports alleged some realtors were exploiting a clause in contacts which allows for the repeated sale of a house before its closing date—therefore driving up the final cost.
The Real Estate Board of Greater Vancouver sent a message to its members on the issue:
Dear member,
The Real Estate Board of Greater #Vancouver sends message to members, expressing disappointment in realtors approaching assignment sales. Looking into what investigative action may be required.
Media reports this weekend have raised concerns about how some individuals within our profession are approaching assignment sales.
A provincial politician has called for a government investigation into these practices.
I’m troubled by these allegations and I know many of you are as well.
I’m working closely with our Communication department to speak with the media on this issue.
It’s important that the media and public know about the high standards that exist in our profession and the rigorous processes we have for investigating alleged breaches of these standards.
Our Professional Standards department is monitoring this situation to determine what investigative action may be required.
I’ll continue to update you on this situation as we learn more.
Sincerely,
Darcy McLeod
President
Real Estate Board of Greater Vancouver
Liberal MLA Peter Fassbender says the Real Estate Council will now be looking into the claims and council will announce the committee members soon.
Written by: Meagan Gill
