Commercial Real Estate Law
Author: Dharam Dhillon
1. Background – What is LOTA
To address issues around anonymous land ownership in British Columbia, the provincial government passed into law the new Land Owner Transparency Actand the related Land Owner Transparency Regulation (collectively, “LOTA”) which will become effective on November 30, 2020. LOTA facilitates the creation and operation of the Land Owner Transparency Registry (the “Registry”), a publicly searchable database mandated by the provincial government to end anonymous land ownership in B.C. The Registry will not replace the existing B.C. land title registry but will be a separate, corresponding registry that provides specific disclosure regarding direct, indirect and beneficial interests in real property located in B.C.
2. Impact on BC Landowners
- Acquisition of New Interests in Land: From and after November 30, 2020, any person (whether or not a reporting body) that applies to register an interest in land in the land title office must file a corresponding Transparency Declaration.
- Existing Ownership of Interests in Land: LOTA requires any reporting body with an existing interest in land to file a Transparency Report prior to November 30, 2021.
- Updating Requirement: A reporting body must to file a new Transparency Report within 2 months of becoming aware that (i) a filed Transparency Report is no longer accurate as to current interest holders, or (ii) an interest holder has become incapable of managing their financial affairs.
- Fee simple estates;
- Life estates;
- Any lease with a term greater than ten (10) years (not including any renewals or extensions);
- A right under an agreement for sale to occupy or require transfer of an estate in fee simple; and
- Certain other real property interests prescribed under LOTA.
- A relevant corporation, which includes corporations and limited liability companies (whether or not incorporated in BC);
- A trustee of a relevant trust, including under express trusts and bare trusts or similar relationships under the laws of other jurisdictions; and
- A partner of a relevant partnership, including under general partnerships, limited partnerships, limited liability partnerships, professional partnerships and foreign partnerships.
- in relation to a relevant corporation, a corporate interest holder (meaning anyone that has, among other things, direct or indirect control over 10% or more of a corporation’s shares);
- in relation to a trustee of a relevant trust, a beneficial owner (meaning someone who has, among other things, a beneficial interest in the land); and
- in relation to a partner of a relevant partnership, a partnership interest holder (meaning an individual or relevant corporation that is a partner in a relevant partnership).
- the individual’s name, date of birth, social insurance number, tax number, location of principal residence and last known address;
- the date on which each individual became or ceased to be an interest holder and the nature of the individual’s interest in the reporting body; and
- whether or not the individual is a Canadian citizen or permanent resident of Canada.
- relevant corporations – corporation’s name, registered address and head office address (if any), jurisdiction of incorporation or continuation and incorporation number and business number;
- relevant trusts – information about the individual or corporate trustee(s) and settlor(s) corresponding to the information that would be required for individual interest holders or relevant corporations; and
- relevant partnerships – the partnership’s business name, type of partnership, registered address or head office address and address of principal business premises, jurisdiction of organization and identification number (if any) and business number.