New and existing reporting bodies with an interest in land need to file an initial transparency report by November 30
The Land Owner Transparency Act (“LOTA”), passed in 2019, introduced mandatory reporting of indirect land ownership (i.e., interests in land not reflected in the land title register). Most entities holding an interest in land in BC will have to submit LOTA reports and declarations by the November 30, 2022 deadline. Declarations and transparency reports are submitted to the Land Owner Transparency Registry (“LOTR”). There are penalties for not completing the required filings.
Recently, the BC Ministry of Finance issued notices regarding the upcoming deadline for land-ownership reports. The notices advise recipients to contact a legal professional to assist with filings and urges them to do so immediately.
This list offers some examples of when you should consult a legal professional regarding your interest in land ownership.
- You are an owner of a corporation, trust or partnership that has a legal interest in land in BC (for example, an investment in commercial or residential real estate)
- You are a part owner of a company which is a part owner of another company which has a legal interest in land in BC
- Your company, which is based either inside or outside of BC, invests in real estate in BC
- There are changes to your company’s ownership, and your company has a legal interest in land in BC
- You or your company is transferring ownership of all or part of a legal interest in land in BC
- You have just purchased or inherited land in BC, such as a house or condo
- You are acting as executor on an estate which has a legal interest in land in BC
- You are not sure if you or your company needs to submit a transparency declaration or a transparency report
Restricted Exemptions
Examples of excluded lands are:
- Treaty lands of a Treaty First Nation
- Recognized self-governing First Nations lands (e.g., Sechelt, Nisga’a)
- Reserve lands
Enforcement and Penalties
The Province enforces compliance with the declaration and reporting requirements outlined in LOTA. A reporting body that fails to file a transparency report or provides false or misleading information in a transparency report may be subject to a fine of not more than the greater of: a. $50,000 for a corporation or other entity, or $25,000 for individual; OR b. 15% of the assessed value of the property to which the transparency declaration or transparency report relates. Other offences under LOTA may be subject to a fine up to $100,000 for corporations or other entities, or $50,000 for individuals.