As fallout continues over the implementation of B.C.’s 15 per cent foreign buyer tax, there is belief the situation may lead to a number of lawsuits.
Real Estate lawyer Richard Bell with Bell Alliance says there will be deals that could not go through before the tax came in.
And it’s not as simple as deposits being forfeited.
If the seller ends up re-selling for a lower price, and the difference is more than that deposit, they do have a right to sue. And it’s worse if that seller has to renege on a deal they made to purchase another property.
“So you could have this cascading effect, where you end up with a number of lawsuits.”
Bell say none of his clients have filed lawsuits yet, but he has heard from some who are considering their options.
Read more background and debate over B.C.’s new tax: Foreign buyers tax kicks in