BC government tightens rules on shadow flipping

Global News reported on new provincial rules targeted at ending the practice of shadow flipping in the real estate market.

The rules, which will take effect May 16, include written consent from the original seller before the property is assigned to another buyer, and the return of any profit to the original seller.

“The government by addressing shadow flipping is addressing one not very important symptom of the larger issue of very high and very volatile housing prices,” said Thomas Davidoff of UBC’s Sauder School of Business. “It’s a hard problem to treat and I believe the government’s energy…would be better spent handling the important issues of taxing and zoning that can actually move the dial.”

Davidoff also gave comments to the Vancouver Sun, Ottawa Citizen and The Province.