Real estate investment

Real estate investment is buying, holding, developing or leasing property to earn income or capital gains. It can be done directly, through a company or partnership, or through pooled vehicles such as real estate investment trusts and syndicated mortgage or fractional interest offerings.

How BC law treats it

Pooled or fractional real estate investments offered to investors are usually securities regulated under the Securities Act, RSBC 1996, c 418, while the Real Estate Development Marketing Act regulates the marketing of development units by developers. Investors must also consider property transfer tax, the speculation and vacancy tax and income tax.

What it means for your business

Choosing the ownership structure at the outset affects liability, financing, tax and how investors can exit.

Risks and common mistakes

Raising money from friends or investors for a property project without a prospectus exemption can breach securities law.

For the full explanation, see our entry on Real estate transaction.

General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.