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Marketing - Comply with CSAIR

Marketing - Comply with CSAIR

In this article:

Note: 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 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 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 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

Definitions

Terminology applicable to CSAIR is as follows:

  • 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.

Resources

For further information, please refer to the following:

About Recording Required CSAIR Information

If you are planning to record the information needed for CSAIR in Lasso, there are some standard fields that will capture basic information on the registrant profile but additional fields may need to be added as questions in the Client Admin Center, to allow sales reps to record the supplementary details for each party to the assignment (assignor and assignee). A user with a Client Administrator role will need to create a question folder and questions specifically for CSAIR, and the questions should be associated to all projects in which pre-sale assignment is applicable. Please refer to the table below for additional fields you may need followed by instructions for creating a specific CSAIR question folder and questions.

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.

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Create Questions to Record Required CSAIR Information

Following are a few examples of the different types of questions you may want to add for CSAIR purposes, and how to add them. You will first want to create a folder specifically for CSAIR questions so that they are all together on the registrant profile edit page, making it easier for the user to complete.

1 – In the Client Admin Center, click Questions and select Manage Questions.

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2 – Click Add Folder, name the folder CSAIR, and Save.

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3 – In the new CSAIR question folder, click Add Question and add a question to identify the Assignor or Assignee. This will allow you to create a custom list of all purchasers that are either an Assignor or Assignee.

  • Enter a Name for the question, such as Purchaser Type
  • Select a Type such as Radio Buttons or Drop-Down (Single) (this will allow only one answer)
  • Enter the Question (it can be the same as the Name)
  • Under Projects, click Select All or check the boxes beside the projects you want the question to be associated to.
  • Click Save.

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4 – Click Add Question and add a question to record Assignment Consent Date.

  • Enter a Name for the question
  • Select Date for the Type (this will allow the user to select a date from a calendar)
  • Enter the Question (it can be the same as the Name)
  • Under Projects, click Select All or check the boxes beside the projects you want the question to be associated to.
  • Click Save.

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5 – Click Add Question and add a question to record Citizenship.

  • Enter a Name for the question
  • Select either Drop-Down (Single) for Manual Input for the Type (this will depend on whether you want to be able to select pull a custom list based on a select answer; manual input will allow a user to enter free-form text)
  • Enter the Question (it can be the same as the Name)
  • Under Projects, click Select All or check the boxes beside the projects you want the question to be associated to.
  • Click Save.

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6 – Click Add Question and add a question to record Assignment Amount.

  • Enter a Name for the question
  • Select Manual Input for the Type (this will allow the user to enter free-form text)
  • Enter the Question (it can be the same as the Name)
  • Under Projects, click Select All or check the boxes beside the projects you want the question to be associated to.
  • Click Save.

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Sales reps will then be able to record the information on the assignor/assignee’s registrant profile in the Sales Center.

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Pull Registrant List of Assignments for CSAIR

Following is an example of how you would pull a list of assignments based on a question of Purchaser Type with radio button answers of Assignor and Assignee.

1 – On the Sales Center Home Page, click the + button in the Custom Lists panel.

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2 – On the Custom List page, under Questions, find your Purchaser Type question and select Assignor to pull all assignors or Assignee to pull all assignees.

3 – If you want to save your list so that you can access it at any time from your Sales Center Home Page, enter a name in the Save list as text field. If you don't need to save it, leave the Save list as field blank.

4 – Click Go.

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A list of registrants will be generated based on the criteria you selected.

5 – Click Select All so that all registrants are checked.

6 – Click Export.

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7 – Click Export CSV.

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8 – Click OK to start the export.

9 – A message will come up indicating that you will be sent an email when the export is complete.

10 – Once you receive notification that the export is complete, click Registrants on the Sales Center Home Page and select Export.

Note: Be sure to wait until you receive the email notification that the file is complete before you download it.

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11 – You will see your CSV file listed under Export Files. Click to open.

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12 – Add columns to the CSV file as needed for CSAIR, such as birthdate, SIN, etc. Do not add this type of sensitive information in Lasso.