After a surge in home buying during the pandemic, the Canadian government first announced a two-year foreign buyer ban would be brought in to help slow the real estate market in early 2022, which would take effect as of January 1, 2023. This ban would prevent non-Canadians and corporations controlled by non-Canadians from purchasing residential property in Canada, with some noted exceptions.
Whistler and Pemberton Excluded from Foreign Buyer Ban
As of December 21, 2022, we now have clarity that Whistler and Pemberton are excluded from this foreign buyer ban. Both Whistler and Pemberton fall outside the Prohibition on the Purchase of Residential Property by Non-Canadians Act definition of “Residential Property” – which states that the prohibition applies to ‘residential property located in a census metropolitan area or a census agglomeration’. We are happy to share that our real estate markets in Whistler and Pemberton will remain open to investment, despite the ban.
View the census tract reference maps here
Foreign Buyer Ban – Important Key Facts
- The Prohibition on the Purchase of Residential Property by Non-Canadians Act prevents non-Canadians from buying residential property in Canada for 2 years, starting January 1, 2023.
- This Act defines residential property as buildings with 3 homes or less, as well as parts of buildings like a semi-detached house or a condominium unit. The law does not prohibit the purchase of larger builders with multiple units.
- The Act has a $10,000 fine for any non-Canadian or anyone who knowingly assists a non-Canadian and is convicted of violating the Act. If a court finds that a non-Canadian has done this, they may order the sale of the house.
Canada’s Foreign Buyer Ban – Key Definitions
All of the below are defined under The Prohibition on the Purchase of Residential Property by Non-Canadians Act
This act applies to individuals who aren’t; Canadian citizens, permanent residents of Canada, persons registered under the Indian Act, corporations based in Canada that are privately held; not listed on the stock exchange in Canada, controlled by someone who is a non-Canadian.
This act defines residential property as buildings of up to 3 dwelling units and parts of buildings, like semi-detached houses or condominium units. This prohibition applies to; residential property located in a census metropolitan area or a census agglomeration.
Frequently Asked Questions: Canada’s Foreign Buyer Ban
When will the Prohibition on the Purchase of Residential Property by Non-Canadians Act come into force?
January 1, 2023. The prohibition will be in effect for a period of 2 years.
Who does the Prohibition on the Purchase of Residential Property by Non-Canadians Act apply to? The Prohibition on the Purchase of Residential Property by Non-Canadians Act applies to:
- an individual who isn’t a:
- Canadian citizen
- Permanent resident of Canada
- person registered under the Indian Act
- corporations based in Canada that are:
- privately held
- not listed on a stock exchange in Canada
- controlled by someone who is a non-Canadian
- entities formed under the laws of Canada or any Canadian province that are controlled by someone who is not from Canada
- an entity formed otherwise than under the laws of Canada or a province
Certain exceptions for specific groups of non-Canadians are outlined in the Regulations.
For more information on the Foreign Buyer Ban, please go here
B.C. Real Estate’s Cooling Off Period
Additionally, effective on January 1, 2023, the Cooling off Period is an unprecedented change to real estate contract law that creates the legal right to rescind a residential real estate contract in exchange for a fee. From the time the contract is finalized, buyers will have 3 days in which they can back out of the deal for a fee equal to 0.25% of the property purchase price.
There are no exceptions to this, for more information on how this will affect your home sale or purchase, please contact me for more information.