In an effort to increase disclosure of the ownership of real
estate in B.C., the Land Owner Transparency Act (“LOTA”)
received royal asset and will be in force as soon as regulations
are prescribed. The Land
Title and Survey Authority of B.C. is advising that the Land
Owner Transparency Registry (“LOTR”) will be launched
soon – as early as this Fall. Once launched,
transferees will be required to file a “transparency
declaration” which will be stored in LOTR, a searchable public
registry with information about indirect ownership interests in
land.
But what does that disclosure look like?
Who must disclose?
- “Reporting bodies,”
generally including:- Trusts
- Partnerships
- Corporations
- “Individual interest
holders,” generally including- Trust beneficiaries
- Partners in a partnership
- Corporate interest holder of at least
10% of outstanding shares or voting rights. (Confusingly, this is
different than the requirements under Property Transfer Tax Returns
and under the new
Business Corporations Amendment Act)
When to disclose?
- Upon registering a legal interest in
land in the Land Title Office; - If there is a change in interest
holder(s); - A reporting body discovers an
inaccurate filling; - A reporting body is a pre-existing
owner when LOTA comes into force; and - A registered owner ceases to be a
relevant reporting body.
It’s also recommended that you obtain additional
advice
in these scenarios.
What to disclose?
- A transparency
declaration indicating if you are a reporting body and
what type. - Reporting Bodies must also file a
transparency report disclosing the following
information:- Corporations: name, registered
address and head office address, jurisdiction of incorporation or
continuation, incorporation number and business number - Trusts: information regarding
the trustee and settlor corresponding to certain information
required for individual interest holders - Partnerships:
partnership’s business name, type of partnership, registered
address or head office address, address of principal business
premises, jurisdiction of organization, and identification number
and business number
- Corporations: name, registered
- Individual interest holders of
the relevant reporting body must disclose: - Full name, date of birth, SIN, tax
number, principal residence and last known address; - Residency and citizenship status;
and - Date on which one became or ceased to
be an interest holder and the nature of the individual’s
interest in the reporting body.
As noted above, these disclosure requirements are confusingly
similar to, but different from:
- The B.C. private companies
Transparency Register (FAQs
here) - Property Transfer Tax Requirements
(PTT Return Guide
here; additional info
here) - B.C. Law Society Client
Identification and Verification Requirements (Details
here)
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
