Attn: Buyers and Sellers! MASSIVE CHANGES by the BC Gov’t affecting th – vancouver real estate

Attn: Buyers and Sellers! MASSIVE CHANGES by the BC Gov’t affecting the purchase of tenanted properties;

The BC Government is once again in full force in ensuring on behalf of tenants: a safe tenancy, predictability, and operating in a fair environment. Bad faith evictions, unfair rent hikes, and limit other ways in which landlords may gain advantage over current or future tenants, are the targeted problems. The new legislation is also imperative to Buyers and Sellers. I will cover both in this summary, as it can be beneficial to understand the implications for both parties, also, viewers of this update will benefit potentially as a Buyer and Seller.

 

From the Buyer’s Perspective

  • First and foremost, what is your timeline for purchase? What is the timeline for your mortgage rate hold with your lender? Quite often that time period is for 3 months (90days). Confirm that those dates extend to subject removal commitment from lender or closing date.

REALTOR TIP: Ensure you know if the property you are viewing/interested in is tenanted as soon as possible. I am able to filter properties on MLS, and inquire to confirm the current possession of the property.

  • Is the property you are viewing or making an offer on a tenanted property?
    1. If so, new legislation requires a Landlord/Seller to provide 4 months notice to tenants! What this means is that once your due diligence period/subject removal period has finished, you would instruct the Seller to give notice (4-month notice) for the tenant to vacate for ‘personal use’ aka selling and subsequent Buyer’s personal use.
    2. Beyond the notice being given, the Buyer has represented that the acquisition is for their personal use. The BC Government has extended the minimum period of time the Buyer to take personal possession of the property from 6 months to 1-year. This is to protect the tenants from being removed from the property, replaced by a Buyer for the short term, moving, and then replacing the past tenant with a new tenant, at a new market rate. 1-year possession commitment is intended to enforce that the Buyer is acting in good faith.
    3. Tenants’ opportunity to dispute Notice to End Tenancy has extended from 15 days to 30 days.

REALTOR TIP: It is imperative to have proper professional property management advise in handling these notices and to ensure that both parties are in alignment with provincial requirements to ensure the real estate transaction is not vulnerable to undesired results.

REALTOR TIP 2: There is a solution to create flexibility (2-month notice) in the 4-month notice period requirement as long as both parties (tenant/Landlord) are agreeable to timelines to end tenancy. Ask me how.

 

From the Seller/Investors’ Perspective

 

  1. Mandatory Use of Landlord Use of New Web Portal

    a) Landlords must use this portal to generate Notices to End Tenancy for personal or caretaker use.

    b) Landlords using the website portal will be required to have a Basic BCID to access the site.

    c) The portal will require landlords to provide details about the persons moving into the home. The details of the new occupant of the home.

    d) While using the website portal, landlords will be given information about the required conditions for ending a tenancy and the penalties associated with ending the tenancy in bad faith. If the conditions prompting the termination notice do not occur as specified, the compensation due to the tenant has been revised from 12 times the monthly rent to the greater of the prescribed amount or 12 times the monthly rent.

    e) Landlords must pay a fee to use this required system

    f) Section 29 requires RTA director authorization before notices are given to end tenancies under certain prescribed sections of the RTA, which are yet to be determined.

    g) Failure to follow rules are now included as offences under the RTA and a currently subject to a $5,000 fine

REALTOR TIP: Bring in a licensed Property Manager to:

  • coordinate with the Realtor’s involved the dates required for notice and possession dates needed
  • Execute the required documentation, in the required timeline to ensure a predictable timeline inline with legal requirements.
  • The fee required is well worth the investment.

CLICK HERE to view MORE of the additional legislated amendments

Once live and ready, THIS LINK to access Landlord Portal