Contract Changes in BC Benefit Real Estate Consumers

The BC Government, as of May 15, 2016 will require contracts of purchase and sale for BC real estate to include a clause stating that the contract cannot be assigned without the written consent of the seller,and that any profit from an assignment goes to the initial seller. Sellers can instruct their Realtor to omit or change the clause.

BCREA President Deanna Horn says "like many other provisions in the contract, buyers and sellers have the option of keeping the new paragraph, changing it or striking it out completely".

The following cluase will now be a part of the Contract of Purchase and Sale:-

"The seller and the buyer agree that this contract: (a) must not be assigned without the written consent of the Seller and (b) the Seller is entitled to any profit resulting from an assignment of the Contract by the Buyer or any subsequent assignee.

"Assignment" is the practice of someone assigning their rights in a contract to someone else before the transaction completes. In smple terms, someone can buy the right to step into the original buyer's shoes to complete the contract. 

Assigning one's right to a contract is a legitmate practice, allowed by common law and also by section 36 of the Law and Equity Act.

Also, starting in Jne 2016 the provincial government will begin collecting citizenship data of real estate owners through the Property Transfer Tax form.


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