B.C. Securities Commission and Crowdfunding

outright rejection: And they’ve also become alarmed recently at news that a new type of venture – real-estate crowdfunding – is being marketed without giving investors a picture of all the costs, hurdles and perhaps outright rejection that a development rezoning may encounter, according to Globe and Mail. For its part, the B.C. Securities Commission is investigating the activities of two local companies that appear to be crowdfunding real-estate deals. City officials see signs that Vancouver hot housing market is enticing buyers to pay inflated prices without getting complete information on how demanding the rezoning process is. Councillor Raymond Louie said it disturbing if the properties are being marketed to potential investors with promises about what the development potential is for the sites, but without warnings about the risks involved. If they’ve overpaid, the city doesn’t take that into account. As well, he said, buyers – whether they’re crowdfunding or not – are going to find themselves in trouble if they pay a high price without realizing that rezoning may be impossible, or that there will be stiff city demands for developer contributions to community benefits that weren’t factored into the developer equation. (www.immigrantscanada.com). As reported in the news.