TAGS: #FHKEXPERIENCE #MARKETUPDATE #TORONTOREALESTATE
On June 23, 2022, Parliament passed the Prohibition on the purchase of residential property by non-Canadians Act. Coming into force January 1, 2023, this Act:
Does not apply to Canadian citizens and permanent residents.
Applies to non-Canadians directly or indirectly purchasing residential property in Canada for a period of two years.
Applies to residential property, including detached houses or similar buildings of one to three dwelling units, as well as parts of buildings such as semi-detached houses, condominium units, or other similar premises.
Applies to direct or indirect purchases of residential property, including purchases made through corporations, trusts or other legal entities.
Establishes penalties for non-compliance applicable to non-Canadians, as well as any person or entity knowingly assisting a non-Canadian in violating the prohibition.
Canadian Real Estate Association – CREA is currently working with government, provincial associations and other stakeholders to minimize the impacts of the new rules on the businesses of REALTOR® members, and any related impact on an already slowing housing market.
Please keep in mind the current January 1, 2023 coming into force date. CREA interprets this to mean should a non-Canadian enter into an agreement to purchase a relevant property on December 31, 2022, or sooner, the prohibition would not apply to that transaction. The language used in the Act suggests the prohibition applies to agreements of purchase and sale (APS) entered into after the January 1, 2023, coming into force date.
The Government has not yet released regulations, which typically clarify and define terms within the Act. CREA’s understanding and interpretation of this legislation may change upon reviewing the upcoming regulations. The legislation may be complicated to interpret, so it’s always a good idea to consult a lawyer for advice or guidance.
Canadian Real Estate Association – News2Me
