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Complying with CSAIR

Complying with CSAIR

Please note that the following information is to be used as a resource only and does not constitute legal advice. If you have questions regarding CSAIR that are not covered here, please contact a lawyer in your area who is familiar with these regulations.

What is CSAIR?

On November 5, 2018, the Government of the Province of British Columbia in Canada launched the Condo and Strata Association Integrity Register (CSAIR). The register is an online database containing comprehensive information on the assignments of purchase agreements of pre-sale condo and strata lots.

An assignment is the transfer of the right to purchase the condo or other strata lot before the building is completed and registered with the land title office. This is commonly referred to as “flipping”. The buyer who is transferring (selling) their pre-sale purchase agreement to a new buyer is called the assignor; the new buyer is called the assignee.

Developers who market residential strata lots are responsible for providing specific information to the CSAIR on all assignments of pre-sale condo and strata lots. The reported information is kept confidential but shared with other agencies, including the Office of the Superintendent of Real Estate and the Canada Revenue Agency.

What is the purpose of CSAIR?

The CSAIR's purpose is two-fold:

  • Ensure that people who assign presale units are paying the applicable income taxes
  • Create greater transparency in the presale assignment process

What information is required?

Effective Jan. 1, 2019, condominium developers who sell strata lots in development properties must:

  • Collect information about assignments of purchase agreements, including key terms of each assignment agreement and the name and social insurance number or business information of the parties to the assignment
  • Include terms and a notice in their purchase agreements and disclosure statements to inform purchasers of the new collection and reporting requirements

The assignor and the assignee can be an individual, a corporation, a trustee acting on behalf of a trust, or a partner acting on behalf of a partnership. Please refer to Information Collection under the Condo and Strata Assignment Integrity Register (CSAIR) for details on the information required for each type of transaction.

How is the information collected?

The Land Title and Survey Authority of British Columbia (LTSA) manages the CSAIR, an developers must have a myLTSA Enterprise account to access the register and report. The Office of the Superintendent of Real Estate is responsible for enforcement of information collection and reporting requirements. Reporting occurs quarterly with the first assignment reporting period ending March 31, 2019, and the report due April 30, 2019.

How is the information used?

The information is applied as follows:

  • By the Canada Revenue Agency to trace transactions back to the assignor’s income tax return to ensure applicable taxes are paid
  • By the BC Government to ensure that buyers are accurately reporting the final purchase price of a condo unit, including all assignment amounts, and are paying the appropriate property transfer tax
  • By the BC government to inform future housing and tax policy

How can the information be recorded in Lasso?

If you are planning to record the information needed for CSAIR in Lasso, there are some standard fields that will capture basic information but additional fields may need to be added as questions in the Client Admin Center, to allow sales reps to record the supplementary details. Please refer to Create Questions to Record Required CSAIR Information for examples and instructions.

Important Note: Do not record birthdate or tax identifiers such as SIN in Lasso. Registrants with assignment information can be exported to a CSV file and sensitive information can subsequently be added to the file.

How can the information be retrieved from Lasso?

Custom Lists can be used to pull registrants based on criteria identified via questions created specifically for CSAIR purposes. The list can then be exported to a CSV file. For instructions, please refer to Pull Registrant List of Assignments for CSAIR.

Definitions:

  • Assignment - An assignment is a transfer of some or all rights, obligations and benefits under a purchase agreement for a strata lot in a development property. It is a transfer made by the purchaser of the purchase agreement to another person or it is a subsequent transfer.
  • Assignor - An assignor is the person who transfers the purchase agreement to another person.
  • Assignee - An assignee is the person who acquires the purchase agreement from the assignor.

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