On January 16, 2008, the British Columbia Government approved individual real estate licensees to form
Personal Real Estate Corporations. This new legislation will go into effect on January 1, 2009.
The Personal Real Estate Corporation structure allows licensed realtors to access the business advantages of incorporation. This can include better planning of income and tax streams and is similar to options available to other professionals, such as dentists, accountants and lawyers.
British Columbia is the first province to offer this corporate structure to licensed realtors.
Personal Real Estate Corporations will have no impact on the existing regulatory oversight framework of the BC Real Estate Council, nor will they reduce consumer protection standards.
The amendments were originally requested by the British Columbia Real Estate Association, an industry association representing the interests of approximately 17,000 realtors in British Columbia on behalf of its 12 member real estate boards.
This removes the uncertainties faced by licensees when dealing with incorporation of their real estate businesses. For high volume producers, the legislation put them in the same category as other professionals, such as dentists, accountants and lawyers.
James - "British Columbia is the first province to offer this corporate structure to licensed realtors" is not a true statement. Salesperson licensees in New Brunswick have been able for years to be licensed as a corporate entity.
New Brunswick Real Estate Agents Act4(1) No licence shall be issued to a salesman unless
(a) he, or if a corporation its nominee, meets
the qualification requirements established by or
in accordance with the regulations;