Author: Richard Cao Student-at-Law On June 23, 2022, the Parliament of Canada passed the Prohibition on the Purchase of Residential Property by Non-Canadians Act which will come into effect on January 1st, 2023. The Act prohibits non-Canadians from purchasing residential property in Canada unless one of the exemptions applies. This act will remain in place for 2 years. The key features of this act are:
The act applies to non-Canadian which includes:
An individual who is neither a Canadian citizen nor a permanent resident.
A corporation that is not incorporated under the laws of Canada or a province
A corporation that is incorporated under the laws of Canada or a province but is controlled by non-Canadians.
The affected properties are Residential properties which means:
A detached house or similar building that contains not more than three dwelling units.
A part of a building that is intended to be used as a place of residence (includes semi-detached houses, rowhouse units, and residential condominiums)
The act does not apply to a non-Canadian who is exempt which includes:
A temporary resident within the meaning of the Immigration and Refugee Protection Act who satisfies the prescribed conditions. The Consultation Paper indicated that students and foreign workers who meet specified criteria might be eligible.
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, person registered as an Indian under the Indian Act, permanent resident or person referred to in paragraph (a) or (b);
Foreign states purchase residential property for diplomatic or consular purposes.
A non-Canadian whose liability arose from entering into a purchase agreement before January 1st, 2023.
The non-Canadian that contravenes the Act is guilty of an offence and liable on summary conviction to a fine of not more than $10,000. This also applies to any person or entity that counsels, includes, aids or abets or attempts to counsel, induce, aid or bet a non-Canadian to purchase, directly or indirectly, any residential property knowing that such a purchase is prohibited. If a corporation has committed the offence, anyone related to the corporation, including its directors, agents, and employees, can all be liable if they directed, authorized, assented to, acquiesced in or participated in the commission of the offence. If a non-Canadian is convicted of the offence, the residential property that is the subject of the offence may be ordered to be sold by the Provincial Superior Court where it is situated under the court's prescribed manner and conditions. The specific details and effect of this Act remain to be determined by future Regulations. Certain questions remain unanswered such as whether the pre-January 1st, 2023 exclusion applies to conditional contracts that become unconditional on or after January 1st, 2023. In addition, Professionals and clients involved in the real estate market may want to consider including representations and warranties regarding the Canadian/non-Canadian status of the purchaser in the purchase/sale contract. Other provisions to consider include limitations on assignments to non-Canadians, indemnity rights and termination rights when the purchaser is a non-Canadian. 2022年 6 月 23 日，加拿大议会通过了《禁止非加拿大人购买住宅物业法》，该法将于 2023 年 1 月 1 日生效。该法案禁止非加拿大人在加拿大购买住宅物业，除非符合其中一项豁免条件。该法案将适用 2 年。该法案的主要规定有以下几点：
非加拿大人，如果配偶或普通法同居伴侣是加拿大公民、根据《印第安人法》注册为印第安人的个人、永久居民或(a) 或 (b ) 段提述的个人；
非加拿大人，因在 2023 年 1 月 1 日之前签订购买协议而已经产生责任。
违反该法案的非加拿大人可处以不超过 10,000 元的罚款。这也适用于明知是被禁止的住宅物业,还建议、怂恿、协助或教唆或试图怂恿、诱使、协助非加拿大人直接或间接购买 个人或实体。如果以公司进行该行为，则与该公司有关的任何人，包括其董事、代理人和雇员，如果他们指示、授权、同意、默许或参与了该行为，都应承担责任。如果非加拿大人被判有罪，作为犯罪标的的住宅物业可以由所在地的省高级法院按照法院规定的方式和条件下令出售。 该法案的具体细节和效力仍有待未来细则来确定。某些问题仍未得到解答，例如 2023 年 1 月 1 日之前的购房合同是否适用于在2023 年 1 月 1 日或之后成为无条件合同。此外，地产专业人士和客户可能希望在购房合同里包括额外的陈述和保证，确认购房合同中买方的加拿大/非加拿大身份。其他要考虑的条款还包括合同不得转让给非加拿大人， 买方为非加拿大人时卖家的追偿权以及终止合同的权利等。