Home assigning, also known as “shadow flipping”, involves the reassignment of sales contracts to multiple buyers in progressively higher prices before the transactions are closed. Housing officials have earlier called for an investigation of the housing sector in Metro Vancouver over allegations of fraud in assignment sales.
Although more specific details won’t be available until after the release of the budget next week, the throne speech assured consumers that the government would provide more affordable options for would-be buyers, along with incentives for market players who would increase housing supply.
“[We will] work with municipalities to reduce the hidden costs in home purchases and to make those hidden costs clear and transparent to home buyers,” Lt.-Gov. Judith Guichon stated in the speech, as quoted by CBC News
“Your government will look into any allegations of improper behaviour in the housing market, and where appropriate, government will take action,” Guichon said.
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In its throne speech last Tuesday (February 9), the B.C. government has announced its intent to form an independent advisory group that would review the phenomenon of home assigning, cited as a main driver for the recent rise in the costs of living in Vancouver.