As of January 1, 2023, only Canadian citizens and permanent residents will be able to buy residential real estate in Canada. It will then be prohibited for any non-Canadian to buy, directly or indirectly, any residential property in Canada.
This law will apply to residential properties, including single-family homes or similar buildings with no more than three living quarters, semi-detached homes, condominium units (divided and undivided), duplexes, triplexes, and condominiums or other similar premises. The law will also apply for purchases made through companies, trusts or other legal entities.
Any person or entity who knowingly assists a non-Canadian in violating the prohibition is guilty of an offense and liable on summary conviction to a fine not exceeding $10,000.
If a non-Canadian is found to have contravened the prohibition, the superior court of the province in which the residential property to which the contravention relates is located may make an order, on application by the responsible minister, compelling the sale of the residential building.
If the court orders the sale of the residential building, the law provides that the non-Canadian buyer cannot receive more than the purchase price he paid for this building.
The implementing decree could, however, exclude temporary residents conditionally.
People in the process of obtaining their permanent residence and people with a work permit could be exempted from this ban on the purchase of residential buildings are permanent residents.
According to CREA, if a non-Canadian enters into an agreement to purchase a relevant property on or before December 31, 2022, the prohibition would not apply to that transaction. The wording of the Act suggests that the prohibition applies to agreements of purchase and sale entered into after the effective date of January 1, 2023.
This new law, called temporary, is for a period of two years until December 31, 2024.