Starting January 1, 2023, the Prohibition on the Purchase of Residential Property by Non-Canadians Act came into force. The Act prohibits any individuals who are not Canadian Citizens or permanent residents of Canada from purchasing residential property for two years. Here are some key points:
- Prohibits non-Canadians from indirectly/directly purchasing property that is residential for two years. This includes purchases being made through corporations, trusts, or other legal entities.
- The definition of Residential property in this case includes detached homes or similar buildings of up to three dwelling units as well as parts of buildings like semi-detached houses, strata units, or other similar premises.
- Establishes penalties for individuals who take part in a non-Canadian residential sale whether they are non-Canadian or not.
- If this Act is contravened, disciplinary actions can include a court-ordered sale of the home purchased and the Non-Canadian receiving no more than the purchase price paid for the property.
- Exemptions include individuals such as refugees, individuals who purchased a residential home with their spouse or common-law partner, temporary residents in Canada who satisfy the conditions in the regulations.
Now that the Act is in force, any individual who counsels, induces, or abets a non-Canadian to indirectly/directly purchase any residential property is guilty of an offence and can be fined up to $10,000. If you have questions about some of the recent changes in Real Estate from Strata Bylaw changes, to Rescission Periods, to Purchase of Residential Property by Non-Canadians Act, connect with me and I'm happy to share my knowledge and chat about what any of these changes might mean for you.