In June of 2022, Parliament passed a ban on foreign home buying in Canada. The impetus behind the new Prohibition on the Purchase of Residential Property by Non-Canadians Act is that it will ease competition for citizens who can’t compete against property buyers and corporations outside Canada.
The act applies to residential properties, including detached homes, semi-detached houses, residential condominiums, strata units, row houses, and land zoned for residential use, even if there are no habitable dwellings on the property.
That law is now in effect and will continue to be for the next two years. It is enforceable with a fine of up to $10,000 for Non-Canadians who violate the ban and Canadians who assist their efforts, including lawyers.
But how will these measures affect you?
Even if you are a Canadian citizen, you’ll need to be wary of who you’re making deals with to prevent any unwanted legal entanglements. And if you are a home buyer without Canadian citizenship, or Permanent residency status your purchasing options will be limited.
In either case, seeking legal advice to ensure your future real estate transactions are fully compliant with the law will save you a lot of energy, stress, and extra expense.
Are There Exemptions?
Although the new law is now in effect, it doesn’t mean foreign parties are entirely blocked from investing in Canada.
The ban does not apply to the following, subject to certain conditions:
- Recreational properties
- Multi family residence with more than 3 units
- Buyers with temporary work permits
- Refugee claimants
- International students
- Non-Canadian spouses and common-law partners
- Homes outside of Census Metropolitan Areas (CMA) with populations of at least 100,000 people and where 50,000+ reside in the core area
- Properties outside Census Agglomerations (CA) where there is a population of at least 10,000 people
- Homes in municipalities with a core population under 10,000 people
- Real estate transactions finalized before Jan 1, 2023
Be advised that certain criteria must be fulfilled in order to claim an exemption for any of the scenarios listed above and you should consult your real estate lawyer to determine if an exemption applies to your unique circumstances.
About Vakili Law Group
You deserve a law firm with a stellar reputation, dedicated attorneys, and years of experience. The lawyers at Vakili Law Group are committed to delivering result and value for all other clients and have extensive experience navigating all kinds of legal issues since 2010. Founder Bobby Vakili and his team offer a wide range of legal expertise ranging from Real Estate law, Business law and Wills and Estates.
Choosing the right lawyer to represent your interests can be daunting especially when you have a pending legal issue with a lot of capital at stake. Vakili Law Group prides itself on defending the rights of buyers and sellers to ensure your rights are protected at every stage of a real estate transaction.
Contact Vakili Law Group today to know all your legal options.
