Alan Hu/pacificevergreenrealty.com

The Supreme Court of British Columbia has ordered Alan Hu, a Surrey-based Realtor, to surrender his profits from the sale of a $3.35-million property after breaching his fiduciary duty to a client.

According to a court decision published on Jan. 10, Pei Hua Zhong, a Chinese immigrant of “modest means,” hired Hu to sell his South Surrey, B.C. home and purchase a new property in Surrey in 2017. Zhong signed a contract to buy a property listed for $2.1-million, conditional on securing the down payment by selling his current home.

When his home failed to sell by the subject removal deadline, Zhong decided to pursue bridge financing, planning to use the equity in his existing property to secure the down payment.

While Zhong prepared a second offer of $2.05-million, Hu referred his friend Lingxia Tao, who was vacationing with him in Las Vegas, to another real estate agent to compete for the same property. Zhong was not made aware of the referral. Tao’s offer, submitted with Hu’s assistance, included a clause allowing her to assign the contract to a third party.

In January 2018, the seller accepted Tao’s bid of nearly $2.1-million, cutting Zhong out of the deal. According to court findings, Hu later acquired the property through an assignment from Tao and in 2021, sold the property for $3.35-million— a profit of more than $1.2-million. 

2038 174 St., Surrey B.C., Image source: homesbyalan.ca 2017

In her decision, Judge Amy Francis wrote that Hu “intentionally undermined Mr. Zhong’s bid to purchase the 2038 (174 Street) Property so that he could take an interest in the 2038 Property for himself,” describing his actions as a “marked departure from ordinary standards of decent behaviour,” and “deceptive and underhanded.”

Hu’s failure to act in client’s best interests

She emphasized that a Realtor’s core responsibility is to act loyally and transparently in the client’s best interests. Hu violated this duty when he shared Zhong’s bid with Tao, facilitated her competing offer and ultimately acquired the property through a contract assignment.

Justice Francis found that Tao relied on Hu for instructions and she was not held legally liable.

While litigation regarding the profit split from the sale between Hu and Tao is ongoing, the court has ordered Hu to disgorge all “ill-gotten gains” from the sale​.

Insurance and regulatory implications

In February 2022, Hu submitted statements to the Real Estate Errors and Omissions Insurance Corporation, though intentional misconduct like fraud typically falls outside the scope of coverage. The B.C. Financial Services Authority, which oversees real estate agents in the province, is reviewing the judgment and considering regulatory action.

In addition to surrendering profits, Mr. Hu must also repay the $19,000 referral feed he took for the original purchase of the Surrey property. 

Real estate services dominated consumer complaints in British Columbia last fiscal year, according to the inaugural Consumer Complaints and Investigations Report 2023-2024 from the BC Financial Services Authority (BCFSA). 

Real estate services complaints by the numbers

The sector accounted for the largest share of complaints received and resolved between Apr. 1, 2023, and Mar. 31, 2024. Of the 1,711 complaints submitted to BCFSA, 1,234 were real estate-related—more than 70 per cent of all grievances. 

The regulator also resolved 1,690 real estate complaints during this period, with a focus on clearing a backlog of cases inherited after BCFSA’s integration with the Real Estate Council of BC and the Office of the Superintendent of Real Estate in 2021.

Over the past three years, BCFSA says it has reduced its overall inventory of real estate complaints from 1,538 in August 2021 to 609 open complaints as of Mar. 31, 2024.

Source: BCFSA Consumer Complaints and Investigations Report

Top themes 

The report underscores key areas of consumer dissatisfaction, with misrepresentation being the leading complaint theme, accounting for 20 per cent of real estate-related grievances. According to BCFSA, these cases often involved inaccurate or incomplete property information, such as incorrect measurements, zoning details or tenancy disclosures.

Other concerns included:

• Deceptive or unbecoming conduct (17 per cent): Actions undermining public confidence in the industry.
• Unlicensed activity (17 per cent): Instances of individuals or companies conducting real estate transactions without proper licensure.
• Failure to fulfill duties to clients (15 per cent): Breaches related to confidentiality, material disclosure, and overstepping authority.

How complaints are resolved

BCFSA employs a multi-step approach to managing complaints, assessing each for risk and prioritizing those with potential consumer harm. In fiscal 2023-24, resolution methods included:

Formal enforcement actions: Monetary penalties (21 cases), with one including license suspension or cancellation)

Informal enforcement actions: Voluntary compliance agreements (27 cases), letters of advisement or warnings (248 cases)

Other outcomes: In 895 instances, complaints were dismissed due to insufficient evidence.

BCFSA regulates real estate agents, brokers, property managers and strata managers, and can also investigate and take action if an unlicensed person or company is performing real estate activities that require a licence in B.C.

Read the full report here. 

After last year’s particularly dismal ski season, the promise of a snowy, La Nina-kissed winter has skiers across the province excited to hit the slopes. While the weather forecast might be promising, for some of the major ski resorts in B.C.’s interior, the financial forecast is considerably more challenging. 

The trouble arises from the federal government’s Prohibition on the Purchase of Residential Property by Non-Canadians Act, more commonly known as the foreign homebuyers ban. Originally implemented in 2023, and recently expanded through 2027, the legislation bans the purchase of residential property by foreign nationals in designated areas across the country. In the context of the country’s current housing crisis, the intent of the ban is defendable. The problem, however, is with sloppy implementation and a notable lack of nuance in the legislation. 

“Detractors will claim that the market will adjust, but the hole left by international investment is not so easy to fill.”

Currently, the foreign homebuyers ban applies to areas deemed by Statistics Canada as a Census Metropolitan area (CMA) or Census Agglomeration area (CA). In the interior of B.C., this encompasses around nine communities and their contiguous areas. This has created a situation across the interior where several popular ski resorts that benefit greatly from international tourism and property investment have been included under the ban. This significantly impacts the economic viability of both the resort and the accompanying community. 

Detractors will claim that the market will adjust, but the hole left by international investment is not so easy to fill. Homes on interior mountains are coveted by Americans, Australians, and numerous other nationalities looking for a winter retreat. For locals a few hours’ drive away, there isn’t the same appeal to purchase these vacation homes.  A day trip or weekend outing in rental accommodation will suffice. 

“These resort areas primarily serve as recreational destinations rather than hubs for permanent residences.”

As it stands Sun Peaks, Apex Mountain and Silverstar have been included in the Kamloops CMA, Penticton CA and Vernon CA areas respectively. These resort areas are distinct from the municipalities they are in proximity to and have little effect on the local housing market. These resort areas primarily serve as recreational destinations rather than hubs for permanent residences. In fact, all of these ski resort areas are situated a considerable distance away from the nearest major municipality. In the case of Sun Peaks, for example, the resort municipality is approximately a 55-minute drive away from Kamloops. Certainly, the federal government doesn’t feel that a glut of chalets and vacation homes scuddled away from core services and jobs is the solution to our housing issues. If that in fact is the plan, it is a questionable one at best.

“Making policy is an art, not a science, unintended consequences are sure to occur.”

What’s more, the government has shown they understand this and have exempted areas accordingly. For example, Whistler and Mount Tremblant in Quebec have been spared from the foreign buyer’s ban. Other resorts in the interior of the province, such as Big White Ski Resort near Kelowna, have been unaffected due to the simple chance of falling just outside the nearest CMA area. Whether by bureaucratic choice or providence, fairness is lacking. Resorts and their accompanying communities in the interior are no less deserving of economic prosperity than their counterparts in the Lower Mainland or the Laurentians. Luck should not be the defining factor in success. 

Making policy is an art, not a science; unintended consequences are sure to occur. That said, it is incumbent on the government to fix problems when they do. As a matter of fairness and good public policy, it is time for the federal government to find some nuance, stop the economic disruption to resort communities in this province and exempt ski resorts inadvertently caught up in this foreign homebuyers ban.

BCREA contributes a monthly column to REM, published on the first Wednesday of each month. Interested in contributing to REM? We’d love to hear from you! Email us at editor@realestatemagzine.ca.

There are around 26,500 Realtors in British Columbia, give or take. As I’ve often said, each is a human being with human characteristics —unique motivations, beliefs, desires, fears, political leanings and business expectations. This creates a challenge for the BC Real Estate Association (BCREA) to then represent all Realtors in the province on issues affecting them and their business.

One of the primary roles of BCREA, as with most member-driven, professional associations, is to advocate on behalf of the sector. At BCREA we claim to be “the voice of BC Realtors.” When there is a policy change by government that affects housing or changes what Realtors need to know in order to best represent their client, or if there is a regulatory change that impacts real estate transactions and client relationships, it is expected that BCREA will step in to advocate for what is best for the sector.

“It’s no secret that the political landscape in British Columbia is subjecting many industries and sectors to incessant change.”

In conjunction with this, there is often an expectation that BCREA will ask what Realtors think of a scenario and then advocate for that. Be the voice, as it were. The problem is that there are so many other factors beyond just what Realtors feel or want, and these other factors need to be considered each and every time BCREA advocates. 

It’s no secret that the political landscape in British Columbia is subjecting many industries and sectors to incessant change. The pace of technology, the economic situation, environmental considerations, political disparity, health and safety expectations, and global pressures all combine to create both external and self-imposed pressure on government to act. This action comes in the form of legislation, policy, and regulation, which means change. There is no lobbying or advocating out of it. The change will continue to happen. So, BCREA’s role is to be proactive where we can and reactive when necessary.

“There are times…when government makes a decision without consultation and the impact is untenable for the industry or consumers. This is where BCREA needs to reactively step in.” 

To be proactive, we need a seat at the table. This requires relationships so there is an invitation to consult in advance and provide input where possible. BCREA currently has these relationships with both government and the regulator, and we’re proud of them. Of course, we all recognize that we won’t always agree on intent, process, or outcome, but that does not squash the possibility of a fulsome and respectful conversation. 

However, there is not always an opportunity to be proactive and provide that input. There are times—some Realtors might argue more often than not—when government makes a decision without consultation and the impact is untenable for the industry or consumers. This is where BCREA needs to reactively step in. 

“We cannot simply poll Realtors as a means of creating our stance on an issue. We must assess the issue from all angles.”

Whether being proactive or reactive, BCREA takes the responsibility of developing a robust, well-researched, comprehensive position very seriously. We cannot simply poll Realtors as a means of creating our stance on an issue. We must assess the issue from all angles. We look at the impact on industry and consumers, legal obligations, privacy considerations, feedback from other stakeholder groups, unintended consequences, training and education required—the list goes on. The information obtained is then compiled into a position for the sector that BCREA becomes the voice of.

And therein lies the rub. This position, developed after days, weeks, and sometimes months of work, may not align with the expectations of some Realtors. Given all the factors influencing the situation at the time, and considering all the work done to develop the position, it may not even be the outcome that the sector expects. So, how then is BCREA the voice of BC Realtors?

The way I see it, BCREA is simply doing the work that Realtors would each do individually if they had the same responsibility, moving beyond self-interest by balancing the interests of various stakeholder groups. 

And make no mistake: We are the voice of B.C. Realtors. It’s just that we’re one voice—not 26,500.

What’s more, BCREA, alongside the province’s member boards and associations, ensures that we understand the priorities for Realtors and how change truly impacts their clients and business. We collect information through surveys. We have committees consisting of Realtors and managing brokers. We engage through resources like BCREA’s Managing Broker Support line. We have well over 100 years of industry experience on staff and, unique to 2024, we conducted the Listening Tour, which saw us host 29 in-person sessions in 18 communities, engaging with hundreds of Realtors.

Understanding and distilling those priorities is a process that’s easier said than done, but it’s intrinsic to every success that we have. And make no mistake: We are the voice of B.C. Realtors. It’s just that we’re one voice—not 26,500.

Sunshine Coast, B.C. (Canva)

QUICK HITS

 

• Two B.C. Realtors were fined over $200,000 for failing to disclose key restrictions in a 2017 waterfront property sale on the Sunshine Coast.
• Acting as dual agents, they marketed the cabin as “legal non-conforming” without informing buyers of its seasonal-use limitations on Crown foreshore land.
• The B.C. Financial Services Authority found their actions misleading, ordering penalties and remedial education for violating disclosure and client care standards.

Two Realtors in B.C. are facing more than $200,000 in fines for failing to disclose information to clients related to a 2017 oceanfront property sale on the Sunshine Coast. 

According to a consent order by the B.C. Financial Services Authority (BCFSA), Joel Patrick O’Reilly and Denise Anne Brynelsen with Royal LePage Sussex in Sechelt acted as dual agents, representing both the buyers and sellers in the sale. 

Property in question

The waterfront property included an 800-square-foot cabin and a dock, both built on Crown foreshore land in Pender Harbour, B.C. Foreshore land, the area between high and low tide, is subject to strict provincial regulations. 

According to the consent order, the cabin had initially been built as a shed in the 1960s. Over time, the previous owners remodelled it into a residence, without obtaining permits. In 2010, the sellers signed a tenure agreement with the provincial government, acknowledging that the cabin was only allowed to be used as a seasonal residence. The government had also communicated that the foreshore tenure was temporary and subject to renewal or revocation.

The sellers did not share this information with the agents at the time of listing.

Professional misconduct

O’Reilly and Brynelsen eventually learned of these restrictions, not through the sellers, but through an inquiry on behalf of a prospective buyer. A foreshore tenure consultant confirmed the cabin was “not legalized” and classified as a “non-conforming use,” and “that structures on Crown foreshore are generally not approved.” 

Despite being made aware of the cabin’s non-conforming status through a government email in 2017, O’Reilly dismissed these concerns, writing in an email to the sellers he thought there was “zero chance of a government agency removing the cabin.”

The agents marketed the cabin as “legal non-conforming” without disclosing the provincial restrictions or the seasonal limitation. On MLS, the property was described as “freehold nonstrata” and highlighted the cabin as a “completely renovated beach cottage.” 

According to the consent order, the buyers, who eventually purchased the cabin for $900,000, asked about foreshore tenure and the possibility of rebuilding. The agents assured them that the tenure transfer would be straightforward and that the cabin’s legal non-conforming status allowed rebuilding within its existing footprint.

After the sale

After the sale, the provincial government refused to transfer the foreshore tenure to the new owners until the cabin was removed. The buyers filed a complaint with BCFSA in 2019, ultimately building a new home on the property in 2023.

In the consent order, O’Reilly and Brynelsen admitted to advertising the property with “false and/or misleading representations” and failing to disclose “material information” regarding the cabin’s use. They also admitted to providing inaccurate information to the buyers and neglecting to conduct necessary verifications about the property’s restrictions.

As a result, the agents were found to have violated the Real Estate Services Act’s requirements for accuracy, honesty and client care in advertising, disclosure and due diligence. 

They each agreed to pay a $100,000 penalty and $2,500 in enforcement costs to BCFSA, and are required to complete a real estate trading services remedial education course.

“The licensees’ failure to disclose information was harmful to their clients”

“It is imperative that licensees disclose all pertinent information to their clients about a property or transaction,” said Jonathan Vandall, BCFSA’s senior vice president of compliance and enforcement in a press release. 

“In this case, the licensees’ failure to disclose information was harmful to their clients. The penalties handed down are reflective of the severity of their misconduct and serve as a reminder to all real estate licensees about the importance of disclosing crucial information to clients.”

The British Columbia election is making headlines and capturing attention throughout the province, yet the proposed solutions to address one of the most pressing issues — housing affordability — have largely missed the mark.

Conservative plans: ‘Rustad Rebate’, ‘Get BC Building’

Let’s start with the Conservatives’ Rustad Rebate, a $3,000 monthly credit on rent or mortgage interest costs. While well-intentioned, this rebate seems to be a short-term fix that skirts around the larger systemic issues plaguing the housing market. This plan risks inflating property values further by offering rebates instead of addressing the root causes of high housing costs. The rebate could also inadvertently increase demand without a corresponding surge in supply, thus exacerbating the affordability issue it aims to alleviate. 

To be fair, the Conservatives have offered other housing solutions beyond the Rustad Rebate in the form of the “Get BC Building” plan. 

The costed platform and details of this plan were revealed just days before the election, leaving experts little time to understand the long-term implications of the proposed initiatives. Moreover, the platform sets an ambitious and unrealistic GDP growth target of 5.4 per cent, along with a deficit comparable to the one presented by the NDP. A lot of the content focuses on criticizing the NDP rather than providing further details on potential solutions.

Rustad’s proposal to develop new towns certainly captures attention and sparks creativity. But, many British Columbians, including myself, are eager to learn more specifics about how the details of this ambitious plan would be implemented. 

NDP plans: Cover 40% of a home’s cost for new buyers, tax cut & more homes for middle-class

On the NDP front, David Eby’s pledge to cover 40 per cent of a home’s cost for new buyers is similarly problematic, essentially transforming the NDP into the very speculators they criticize. 

While it’s designed to simplify entry into the housing market, this may also result in higher home prices, as sellers anticipate greater purchasing power from buyers. This also only targets a small group within the larger housing market in B.C. – first-time buyers. While we can all agree that first-time buyers are having an increasingly hard time getting into the market, this excludes equally important groups like young couples looking to start a family and seniors looking to downsize.

The plan also ties homeowners to long-term financial commitments that could become a burden if personal circumstances shift, echoing concerns from economic analysts about its potential to create new forms of financial insecurity. 

The NDP’s plan, combined with the Federal Liberals, could also significantly impact our housing market by encouraging potential buyers to pursue short-term incentives for homes that may ultimately exceed their long-term financial capabilities.

Both strategies reflect a trend toward using public funds to bring down housing costs. However, critics argue that these financial interventions don’t tackle fundamental issues such as property taxes and the cost of developing a project, which stand as significant barriers. 

Beyond Eby’s big idea to fund housing costs for new buyers, the NDP proposed a $1,000 boost for household budgets through a middle-class tax cut, along with a plan to intensify efforts against speculators and build 300,000 new homes for the middle class, which appear to be a fresh spin on their earlier policies. 

Green plans: Rental support & emergency housing

And lastly, the Green Party’s focus on rental support and emergency housing clearly leans on the public sector to boost housing supply and protect affordable rentals. While the public sector definitely has a role in making housing more affordable, we can’t forget about helping the private sector too. This approach overlooks a chance to come up with strong, creative policies that could connect with a wider audience looking for real change.  

Many of these electoral solutions fail to address the root causes of the complex housing affordability crisis in the region. From what we can see, even when they do acknowledge these underlying issues, they often lack specific details on how the party plans to implement effective measures.

Key solutions missing from the discussion include addressing the skilled worker shortage affecting home construction, slowing the growth of housing prices to allow wages to catch up, collecting wealth windfalls from zoning changes to fund affordable housing and implementing strategies to control costs in the regular housing market.

Ultimately, these housing strategies, though well-intentioned, risk becoming costly stopgaps. True progress demands policies that not only offer immediate relief but also pave the way for sustainable growth in our housing supply. B.C.’s housing crisis calls for a balanced approach that includes fiscal responsibility, market dynamics and long-term planning — a challenge that remains unmet in the current political discourse.

Love them or hate them, depreciation reports are critical documents essential to strata corporations and properties. They outline the current condition and long-term maintenance needs of a building’s joint assets, such as the roof, plumbing and elevators. The report assesses the building’s condition, estimates the remaining lifespan of its components and projects future repair and replacement costs over 30 years.

B.C.’s mandated change

In April 2024, British Columbia’s provincial government enacted additional regulations regarding obtaining these reports, forcing strata councils and owners to stop burying their heads in the sand and ignoring the need for future planning.

Effective July 1 this year, depreciation reports have become mandatory for any building larger than five strata lots. These reports will also need to be updated on a five-year cycle. Strata corporations can no longer opt-out via a three-quarter vote at an annual or special general meeting. There will be a grace period for allowing the completion of these reports, depending on where the building is located within the province.

Impact of the changes — a surprise for some

What does this mean for owners, buyers and sellers? Some might see the changes as bad news, but the pros outweigh the cons.

“These reports are a great tool in a strata corporation’s toolbox for planning their budget and repairs for the next several years,” comments Pam Zak, vice president of management services at Tribe Management.

For many, these new regulations may have come as a surprise. But those working directly with strata corporations saw the changes coming.

“The recent changes weren’t a surprise for our clients,” Zak adds. “We announced it well in advance, so our portfolio of properties has been well prepared for the new requirements. We received very little negative feedback from clients regarding the changes.”

Two reports go hand in hand, creating some cost savings

With the growing demand for electric vehicles (EVs) and the move away from gas-fired appliances in B.C., the new legislation now requires strata corporations to conduct electrical planning reports to assess their building’s electric infrastructure capacity and the depreciation report.

The electrical planning report intends to provide the strata with an overview of its current electrical capacity and what changes might be needed to upgrade that capacity, including items such as heat pumps and EV charging.

Mack Grigg, project manager with Sense Engineering, notes that these two reports go hand in hand. He says there’s a crossover between the electrical and HVAC equipment that needs to be captured in both a depreciation report and an electrical planning report, so it makes sense for buildings to do both reports simultaneously, which results in some cost savings.

“A depreciation report can be overwhelming for the average homeowner. They’re long and complex,” adds Mack.” That said, an executive summary of a high-level snapshot of the report should be provided, which we find quite helpful for owners. It makes for an easy entry into reading these lengthy reports.”

Cost increases can occur for those who budget according to report recommendations

Although change can be difficult for owners, buyers and sellers, these stricter requirements can be beneficial in the long run. While these changes have perceived downsides, such as potential for increased fees, Zak meets with her team and has not heard of significant increases overall — but that could be different for those who choose to budget according to the report’s recommendations.

Key advantages

The three key advantages of these reports for owners and sellers are financial preparedness, property valuation and sustainability.

When it comes to strata corporations themselves, the reports bring many advantages by helping them plan long-term repairs and upgrades, which can help prevent unexpected expenses for capital projects. They also provide various funding models so owners and buyers know what to expect for expenses down the road. Unlike in other provinces, British Columbian strata corporation owners still have the option of how they want to fund these projects.

Well-maintained buildings with updated reports attract potential buyers by offering transparency on the state of the building and what repairs should be expected in the future, barring unforeseen events. As many buyers look for well-run complexes, future maintenance costs and the building’s financial health can help maintain or increase property value.

Sustainability is at the forefront of real estate. Electrical planning reports ensure building managers know the electrical systems and their capacity. Owners and buyers will know if the building is ready for EV charging infrastructure or what changes need to be made to support the increased demand for more sustainable environmental solutions.

The recent changes to depreciation reports in B.C. represent a significant step forward for property owners and buyers. These updated regulations promote proactive and long-term planning in the real estate market by ensuring that buildings are better maintained and financially prepared for future repairs. In the long run, the enhanced focus on proactive maintenance and informed decision-making will benefit everyone involved.

Coldwell Banker Canada recently announced the addition of Coldwell Banker Executives Realty to its network. The brokerage is led by Bill Hubbard and based in Vernon, in British Columbia’s interior.

The company notes Hubbard’s decision to join was a strategic one, due to Coldwell Banker’s advanced technology, progressive approach and growing presence in the Canadian market. With over 35 years of industry experience, Hubbard is forward-thinking and takes an innovative perspective.

Hubbard’s background and experience

Hubbard’s real estate career began in Alberta and continued in B.C. after he relocated in 1996. With his previous brokerage, he earned its Franchisee of the Year Award for all of Canada in 2015. His offices have consistently ranked among the top 30 in the country and received Century 21’s highest production award, the Grand Centurion.

Hubbard is also committed to community and actively supports Easter Seals Send a Kid to Summer Camp.

Business change and growth

With the shift in industry dynamics, in 2018 Hubbard restructured his business model to blend traditional practices with modern, digital-first strategies. This helped him grow his business from 55 to 160 realtors by 2024.

His brokerage now offers full-time sales coaching, training and education services, and simplified business fees.

“The changes coming at the real estate industry require brokerages and franchisors to think outside the box. Six years ago, we chose to build a hybrid business model between traditional brokerages and the new cloud-based business models.

The second step was to find a strong brand that consumers already trusted that was progressive enough to embrace our new business model. After an intense search, Coldwell Banker was clearly the brand. Our growth is proof that realtors are ready for this change,” Hubbard explains about his journey and what led to the switch.

The goal moving forward is to “cement a leading position across the eight market areas Hubbard’s offices serve in B.C.: Castlegar, Enderby, Kamloops, Maple Ridge, Revelstoke, Salmon Arm, Sicamous and Vernon.”

A challenge in the world of government relations is that it’s inherently a long game. Here in British Columbia, the provincial government has been hearing the desperate voice of the electorate to restore affordability as quickly as possible.

This has manifested into a litany of housing policy announcements that are often big on podium bluster and critically shy on advance research or sector collaboration. The result is often one step forward, two steps back. 

Housing policy often used for populist purposes; ends up rushed, under-researched & weak on advance collaboration 

The BC Real Estate Association (BCREA), in cooperation with a coalition of like-minded and equally concerned housing organizations including the likes of the Aboriginal Housing Management Association, BC Non-Profit Housing Association, Canadian Mortgage Brokers Association – BC, LandlordBC and many others, made a public call for the government to establish a permanent roundtable on housing in April 2023.

The ask, however, fell upon resistant ears for a likely series of reasons. One of the most concerning is the governmental tendency to use housing policy for populist purposes. 

It’s my perspective that a true crisis deserves the best minds working to solve it, and it certainly shouldn’t be manipulated to attract votes. What’s necessary is collected expertise working together, a non-partisan approach, in-depth research and evidence-based decision-making. Far too often in B.C., our housing policy is rushed, under-researched, weak on advance collaboration with sectoral expertise, and as a result, significantly less effective than it has the potential to be. 

It’s not that the provincial government doesn’t have good intentions and a genuine desire to effect positive change. However, the influential leaders involved are either unaware of best-practice policymaking or arrogant enough to believe their hodge-podge of ministerial policy staffers is sufficient to solve the incredibly complex housing issues before them. 

Residential Tenancy Regulation changes: A victory with unaddressed concerns remaining

As a result, there are many instances where the government announces policy, only to have to make rapid amendments to correct overlooked issues due to a lack of advanced research. Case in point, over the summer the Province amended the Residential Tenancy Regulation to require landlords to give tenants four months’ notice, instead of two months, when evicting for landlord or purchaser use. The amount of time a tenant had to dispute the notice was also increased from 15 to 30 days.

In response to feedback from the BCREA and the Canadian Mortgage Brokers Association – BC, on August 1, 2024, the Province announced that it would be further amending the Regulation to require a three-month notice period (down from four months) and would give tenants 21 days to dispute the notice (down from 30 days) when a landlord issues a notice to end tenancy for the purchaser’s use of the rental unit.

These changes took effect on August 21, 2024. This was a sizeable BCREA Government Relations victory in terms of identifying issues created by the new legislation and achieving an almost immediate public backtrack from government. But while this was a partial course correct, there are still a variety of issues and concerns with the legislation that, as yet, continue to go unaddressed. 

Privacy and transaction lead time concerns

We voiced privacy concerns about a new requirement that landlords provide a copy of the Contract of Purchase and Sale (CPS) with the notice to end tenancy. To the government’s credit, the new landlord web portal was then updated so landlords are no longer required to provide a copy of the CPS to the tenant(s). Landlords will still be required to upload a copy of the CPS to the web portal, but it will not be disclosed to the tenant and will only be for internal Residential Tenancy Branch (RTB) use.

We would like to see high-ratio insured buyers (including first-time buyers) who will be occupying the property continue to have a two-month notice period because of the financial hardship caused by a longer delay in them taking possession of their property, and the likelihood of them running afoul of financing restrictions.

In future, the B.C. Government should allow much longer lead times for implementation when making changes that involve real estate transactions and tenancy issues. Provisions should always be made to exempt transactions that are already in progress when announcements about these kinds of changes are made.

To protect the privacy of buyers, it would be prudent to eliminate the requirement to report to former tenants for buyers who intend to occupy their own units. The buyer’s intent to occupy could be documented for the RTB by use of a Statutory Declaration or as part of the Property Transfer Tax return process. An early sale of the unit could be tracked through the Land Titles or BC Assessment systems. The government already has its own sources of information to verify the occupancy status of an owner and that the unit hasn’t sold within the year.

Addressing needs of certain demographics and short-term rentals for owners between completions

They also need to provide a more paper-based alternative to the new web portal for use by less technically savvy landlords or allow the existing paper forms to still be used for giving tenants notice. The Ministry’s suggestion for such landlords to visit a Service BC Office or the RTB’s Burnaby office for assistance is hardly a realistic or efficient option and is dismissive of legitimate problems of different demographic groups within our communities.

Lastly, they should also allow the rules for short-term rentals to accommodate property owners or buyers who are stuck between completions if the rental is needed for a period under 90 days.

In about a week, the B.C. election takes place. In the end, the Province will most likely be governed by either the BC NDP or the Conservative Party of B.C. Whichever party emerges victorious, a new, more collaborative future that back-benches politics and puts a newfound focus on non-partisan results is vitally needed.

Please note that it’s BCREA policy to not respond to comments on any of its online articles.