The Government of British Columbia has extended the filing deadline for the Land Owner Transparency Registry (LOTR) by one year, to Nov. 30, 2022. But what is the registry and who does this new legal requirement apply to?

According to the provincial website, the LOTR (no connection to the fantasy trilogy Lord of the Rings) is “a searchable registry that maintains information about 'interest holders' under the Land Owner Transparency Act. These are individuals who do not have direct ownership of land but are considered to have some meaningful relationship with the land or an indirect ownership interest in it.” The LOTR is the first-of-its kind across Canada and aims to eliminate money laundering in real estate.

Michele Babchuk, MLA for North Vancouver Island, explained how the legislation was brought in through a 2018 plan for housing affordability in BC. One of the most important measures identified by an expert panel was "the disclosure of beneficial ownership." She also offered that anyone in her constituency with questions regarding this can reach out to her office for assistance and clarification.

Corporations, societies, co-ops and numbered companies are some of the entities that may need to register. To assist the public, there is a quiz on the website to check if the requirement applies to one’s situation. According to the LOTR Overview accessible from the website, interests in land requiring disclosure include:

• An estate in fee simple (which is the most common form of ownership),
• A life estate,
• The right to occupy land under a lease of 10 or more years,
• The right to occupy or require transfer under agreement for sale, and
• A prescribed right (by regulation)

Exempted lands are government-owned lands, treaty lands, reserve lands and recognized self-governing First Nations lands. 

The fact sheet also states that through this legislation, the government is “taking action to end hidden ownership” in order to crack down on tax fraud and close loopholes.

Interest holders must employ a lawyer or notary public to file the application. Quadra Island notary Sally Houghton explained that if a corporation is named on the land title, "the government now wants to know, 'okay, but who are the actual people? Who are the names in there who control the sale of that land?'"

A simple application may cost as little as $40 in government charges, although the legal fees are likely to run higher. However the penalties for not registering are steep, to a maximum of "15% of the assessed value of the property to which the transparency declaration or transparency report relates." 

To learn more about the LOTR, visit landtransparency.ca.

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