Premier Christy Clark says she expects British Columbia’s real estate industry to act on allegations that some agents are exploiting a clause that allows a contract to be resold multiple times before a property deal closes, driving up prices and commissions.
“We’re giving them the chance to fix it. If they don’t, we’re going to fix it for them,'' she told reporters Feb. 10 in Victoria. ”I don’t have a lot of patience on this issue.”
Some Metro Vancouver real estate agents have allegedly been involved in “shadow flipping,” or selling a property multiple times before the closing date. As a result, the final price rises by hundreds of thousands and the agent collects commission on each sale.
Only the final buyer pays the property transfer tax, meaning B.C. is potentially losing out on millions in tax revenue.
