New Mandatory Registration Requirements For Properties Held In Trust Or Bare Trust Relationships

DO YOU HOLD PROPERTY IN A TRUST, CORPORATION OR PARTNERSHIP? If so, it is important that you read on…

The Land Owner Transparency Registry is a publicly searchable registry of information about beneficial ownership of land in British Columbia. Beneficial land owners are people who own or control land indirectly, such as through a corporation, partnership or trust.

Who Is Affected by the November 30, 2022 LOTR Filing Deadline?

By November 30, 2022, a Transparency Report is required to be filed by a legal professional to the Land Owner Transparency Registry (LOTR) for land owned by reporting bodies prior to November 30, 2020. Reporting bodies are relevant corporations, partnerships or trusts with a registered interest in land as defined in the Land Owner Transparency Act (the “Act”).

DEFINITIONS
Interest Holder
= Transferee, Beneficiary, Indirect Owner (the true owner of the property)
Interest in Land is defined in LOTA as any of the following:

Reporting Body = means a relevant corporation, a trustee of a relevant trust or a partner of a relevant partnership that is required to file a transparency report (i.e. someone holding on behalf of the Interest Holder)

Transparency Declaration = A transparency declaration is required when an application is made to register an Interest in Land as defined in in LOTA and if a property is currently held by a Reporting Body. Filings are required to be submitted electronically by a legal professional.

Transparency Report = A transparency report filed by a reporting body must contain the following information:

(a) the reporting body’s primary identification information;
(b) the information required under section 19 in respect of each interest holder;
(c) if the reporting body is a relevant corporation,
(i) the relevant corporation’s business number, if any, within the meaning of the Income Tax Act (Canada), and
(ii) the incorporation, continuation, amalgamation or other identifying number or designation given to the relevant corporation by the jurisdiction in which the relevant corporation is incorporated, organized, formed, continued or transferred;
(d) if the reporting body is a trustee of a relevant trust,
(i) the information required under section 20 [information about settlors] in respect of each settlor, and
(ii) the reference number, if any, of the trust instrument registered under section 180 [recognition of trust estates] of the Land Title Act;
(e) if the reporting body is a partner of a relevant partnership,
(i) the relevant partnership’s primary identification information,
(ii) the relevant partnership’s business number, if any, within the meaning of the Income Tax Act (Canada), and
(iii) the identifying number, if any, issued to the partnership by the jurisdiction identified under subparagraph (i);
(f) the parcel identifier assigned to the land to which the report relates;
(g) in respect of the individual who is certifying the report in accordance with section 25 [certification of transparency declarations and transparency reports], the individual’s name, position name or title, telephone number and email address;
(h) prescribed information, if any.

Land that is included:

  1. Fee Simple (so most if not all that we do);
  2. Life Estate;
  3. Right to Occupy – Lease (>10 years)
  4. Right to Occupy – Agreement for Lease
  5. Prescribed Right (by regulation) https://www.bclaws.ca/civix/document/id/complete/statreg/438_81
  6. Treaty First Nations are exempt.

All Interest Holders (Transferees) need to file a Transparency Declaration (this is not retroactive):

  1. This will disclose ID about the Transferees, Beneficiaries of the land;
  2. Transferees include beneficiaries and indirect owners and anyone who has the power to revoke the trust and receive the land.

Reporting Body’s need to file a Transparency Report, a Reporting Body is:

  1. Private Corporation (10% equity, shares, voting rights – less than 10% exempt);
  2. Trusts (including Bare Trusts) – exempted Trusts as per Schedule 2 – (which include Testamentary, Administrator Trusts, AET, Spousal Trusts) of the Act;
  3. All Partnerships.

Reporting Body requirements to file a Transparency Report is retroactive. If you hold property that is held in a Trust, a Corporation or Partnership as described above, you will need to file a Transparency Report by November 30, 2021.

Further, if a change of ownership happens i.e. the death of a Reporting Body a new Transparency Report needs to be filed.

A Reporting Body that becomes aware an Interest Holder may be incapable of managing their affairs must take reasonable steps to determine if this is so, and disclose this in the Report.

A Reporting body must take reasonable steps to notify each Interest Holder identified about the Transparency Report, before it is filed.

If the Reporting Body is no longer is existence, a Notice to Administrator (the Land Title Office) is to be filed (within two months).

Only a Transparency Report is required for existing reporting bodies with an interest in land; a Transparency Declaration is not required unless ownership of the land is being transferred.

What Are the Consequences of Not Filing to LOTR?

Penalties of up to $50,000 or 5% of the assessed value of the property may be imposed for violations to LOTA. The Government of BC sets and enforces compliance with the Act.

If you wish to speak to us about the need to file a Transparency Report, please contact us.