As of January 1, 2023, the BC government regulates foreign buyers by banning non-Canadians from purchasing real estate for a period of 2 years.

The government released the regulations supporting the federal foreign buyer ban today, December 22, 2022, defining what the ban will look like at the start of the new year.

These regulations outline:

  • The definition of a residential property, foreign buyer, and purchase;
  • Exceptions for temporary residents that meet specific obligations that include students or workers, refugees, and accredited members of foreign missions in Canada; and
  • Penalties for non-compliance applicable to Non-Canadians, as well as any person or entity knowingly assisting a Non-Canadian in violating the prohibition

There’s still little information on how this law and its regulations will be interpreted and enforced.

To summarize:

  • The Prohibition on the Purchase of Residential Property by Non-Canadians Act prevents non-Canadians from buying residential property in Canada for two years starting on January 1, 2023.
  • Non-Canadians are defined as 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 a stock exchange in Canada, and controlled by someone who is a non-Canadian.
  • The act defines residential property as buildings with three homes or less, as well as parts of buildings like a semi-detached house or a condominium unit. The law doesn’t prohibit the purchase of larger buildings 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.

For more information about how the BC Government regulates foreign buyers, see these links:

 

As always, please reach out to me if you have any questions, whether about this information or any other real estate related by clicking here.

 

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