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Two-Year Ban on Purchasing Residential Property

Two-Year Ban on Non-Canadians Purchasing Residential Property

According to the REALTORS® Association of Edmonton, as of January 1, 2023 a two-year ban comes into effect for non-canadians wanting to purchase residential property.

This means that non-Canadian citizens or non-permanent residents of Canada can not buy a home or any residential real estate for two years. This includes direct and indirect purchases. Anyone, as a part of the transaction, who helps a non-Canadian buy a house is subject to a fine of up to $10,000.

Read more at https://www.mltaikins.com/real-estate/its-not-just-foreign-buyers-wholl-be-impacted-by-canadas-residential-real-estate-ban/

This purchasing ban will include single family houses, townhouses, duplexes and condominiums. The $10,000 penalty will apply to REALTORS®, any directors, officers, agents, mandataries, senior officials or managers of a corporation or entity.

If you are a canadian resident and are planning on purchasing a home in 2023 or 2024, expect to provide your passport and drivers license for fintrac purposes to your REALTORS® when you are writing an offer - $10,000 is a big fine!

I found another interest article reguarding this bill at https://www.lexology.com with allowed exemptions:

The Act does contain a number of exceptions, described below:

  • Temporary residents who satisfy certain conditions: ... for international students undertaking studies in Canada that are conducive to future permanent residency.
  • foreign nationals working in Canada who have filed Canadian tax returns and continuously worked for three out of the past four years in certain qualified work.

  • Refugees
  • Diplomatic or consular purposes:
  • Non-Canadian individuals with Canadian spouses or common-law partners

I still don't completely  understand the foreign ownership ban taking place January 1, 2023, but will keep you updated as soon as I here more. Let me know your thoughts.

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