Canada will ban non-Canadians from directly or indirectly purchasing non-recreational, residential property for a period of two years starting January 1, 2023. The measures were part of Bill C-19 – the Budget Implementation Act, 2022 – which received royal assent on June 23, 2022 as the federal government looks to cool the hot housing market and ensure Canadians have more access to purchasing homes. The prohibition does not apply to an individual who is a non-Canadian and who purchases residential property in Canada with their spouse or common-law partner if the spouse or common law-partner is a Canadian citizen.
Summary of Legislation
The Act prohibits non-Canadians from purchasing residential property in Canada for 2 years. This act doesn’t affect Canadians and permanent residents. There may be exemptions for certain groups of people, types of residential property, and particular circumstances – these have not yet been established. (Once we’ve reviewed your feedback, we can establish the exemptions.)
The Act:
- restricts non-Canadians from avoiding the prohibition by using corporations or other entities to purchase residential property
- allows the Government to clarify the scope and application of the prohibition, including by defining what is meant by “control,” and further elaborating what constitutes a “purchase”
- establishes penalties for non-compliance applicable to non-Canadians and any person or entity knowingly assisting a non-Canadian in contravening the Act
Any person or entity that knowingly assists a non-Canadian in contravening the prohibition, is guilty of an offence and liable on summary conviction to a fine of up to $10,000.
If a non-Canadian is convicted of having contravened the prohibition, the superior court of the province in which the residential property to which the contravention relates is situated may, on application of the responsible Minister, order the residential property to be sold.
The Act establishes that any such court-ordered sale will result in the non-Canadian receiving no more than the purchase price paid for the residential property.