FOREIGN BUYERS BAN
For a period of two years starting January 1, 2023, non-Canadians are banned from purchasing homes in Canada under the definition of “residential property.” Although further technical interpretations of the regulations are still pending, here is the current understanding of the regulations.
REALTORS®, along with lawyers and notaries, have an obligation to inform their clients. The legislation does not rely on REALTORS® to enforce the prohibition. However, REALTORS® who knowingly assist a non-Canadian in contravening the prohibition can be found guilty of an offence and liable on summary conviction to a fine of up to $10,000.
Importantly, REALTORS® do not have any information collection, processing or reporting requirements. REALTORS® should still engage in due diligence as a measure of risk mitigation. To support REALTORS® with their due diligence, the Canadian Real Estate Association (CREA) has developed a certificate: Certification and Consent of Purchaser.