Halting Shadow Flipping and Fixing BC's Housing Market (Alternate Title: Christy Clark Took our Advice?!)

The provincial government of British Columbia has now responded to public outrage about “shadow flipping” – realtors assigning agreements for sale of property in escalating flips, generating a chain of secret profits and multiple commissions from the single sale.  From now on, shadow flipping is prohibited unless the seller has consented to it, and the profits must go back to the homeowner.

We commented about this issue back in February and demanded essentially the reforms that have now been put in place: disclosure of shadow flipping and restoring any gains to the original parties. Hmmm…. does Christy Clark read our blog?

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Time to shine the light on shadow flipping

A recent Globe & Mail investigative report revealed that some BC realtors may be driving up house prices by speculating on properties in whose listings they are engaged, or “shadow flipping”.

The provincial government has left it to the Real Estate Council of British Columbia to investigate, but early indications from that organization are not encouraging.  Under increasing public pressure, the Premier has suggested that the province will intervene if the Council does not do a satisfactory job.

That is not good enough.

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