If you own an "interest in land" through an entity in B.C., you must file a Transparency Report!

In 2019, the B.C. government enacted the Land Owner Transparency Act that requires entities, including corporations, partnerships, trusts etc. having an “interest in land” to file a Transparency Report with the Land Owner Transparency Registry. So, what does it mean to have an “interest in land”? If you answer any of the following questions in the affirmative, then the entity is deemed to have an interest in land and is required to file a Transparency Report:

1. Does the entity own one or more free hold properties?

2. Does the entity own a life estate in land? This could be a right to use or occupy real estate through the life of a person.

3. Does the entity have a right to occupy land under a lease that has a term of more than 10 years?

4. Has the entity entered into an agreement for sale with someone by way of which it has a right to occupy land or require the transfer of a land to itself?

Even if you answered in the negative to all the above questions, the entity may still be required to file a Transparency Report if it has any other prescribed rights or interests in land.

The idea of a Transparency Report is to identify the real beneficiaries of all land in British Columbia. For example, if the Directors of a land-owning corporation enter into a contract with a third party, whereby that third party can direct the Directors on how to vote or act, then such indirect beneficiaries ought to be identified in the Transparency Report.

Deadline

For all pre-existing owners of real property, the deadline to file the Transparency Report is November 30, 2022.

Penalty

By not filing the Transparency Report, you could be in violation of B.C. law, which can result in penalties of up to $50,000 or 5% of the assessed value of the property, whichever is greater.

If you wish to find out if your corporation, partnership or trust is required to file a Land Owner Transparency Report or who all to identify in the said report, our experienced lawyers are fully equipped to help you. Reach out to us at nitin@sglawpartners.com / aj@sglawpartners.com or call us at 604-993-0994.