BC's new Land Owner Transparency Act

The Land Owner Transparency Act, known as LOTA, launches Nov. 30, 2020. LOTA will be a publicly searchable registry of info on individuals that directly or indirectly hold interests in land through corporations, trusts and partnerships. This is part of a government initiative to end the hidden ownership of land and address the use of these entities for money laundering, tax evasion and tax fraud.

While the declaration will be filed by a lawyer as part of the real estate transaction, it is important that interest holders in property are aware of the new requirements early on in a transaction to have the time to gather appropriate information and paperwork. In cases where it is determined that a transparency report must be filed, ample time must be set for closing periods.

Who will this affect? LOTA defines interest holders as a beneficial owner of a relevant trust, a corporate interest holder of a relevant corporation, or a partnership interest holder of a relevant partnership.

In other words, those who do not have direct ownership in a property but have a meaningful relationship or indirect ownership in the land will have to be declared and will be a part of a publicly searchable database.

If you have questions about how LOTA might affect you and your real estate transactions, please get in touch or visit Landtransparency.ca for more info