Reforming the Regulator – British Columbia Real Estate Association

In 2021, the BC Government intends to integrate the Office of the Superintendent of Real Estate (OSRE) and the Real Estate Council of British Columbia (RECBC) into the BC Financial Institutions Commission (BCFSA). According to the December 12 news release, this move will satisfy a recommendation made by Dan Perrin in 2018 to create a single real estate regulator and also help address money laundering concerns in real estate.

More than $7 billion in dirty money was laundered in B.C. in 2018, hiking the cost of buying a home by about 5%, according to British Columbia?s Expert Panel on Money Laundering in Real Estate. Learn more: https://news.gov.bc.ca/19694

Real estate licensees have been subject to dual regulators–OSRE and RECBC–since 2016. The system led to challenges with policy development and some uncertainty about roles. In 2018, responding to requests from OSRE, RECBC and BCREA, Minister of Finance Carole James commissioned an independent review of the regulatory structure. The review was carried out by Dan Perrin.

BCREA appreciates the governmen’s interest in improving our regulatory framework, and we’ve identified four goals for the reform process:

  1. Protect the public and foster consumer confidence.
  2. Ensure a regulator with industry knowledge and expertise.
  3. Eliminate the current coregulator model.
  4. Create a regulatory framework that is:
    • easily understood and accessed by licensees and the public, and
    • involves industry consultation.

We look forward to working with the regulators and the Ministry of Finance to achieve these goals and create a stable regulatory environment.

Government news release: https://news.gov.bc.ca/releases/2019FIN0115-002149.

Photo caption: Ministers James and Eby at a spring news conference about the estimated money laundering impact on real estate

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