We wanted to keep you informed that the rollover into 2023 has also brought with it some new and noteworthy real estate regulations for buyers, sellers, and renters.
BC homebuyer rescession period
As of January 3, 2023, BC home buyers now have a three-day period in which they can decide to back out of a purchase of residential property after signing a contract. If they do, the seller is entitled to 0.25 per cent of the agreed upon sale price of the home as a rescission or “break” fee. (ie.$2,500 on a $1M purchase). Learn more here.
Federal foreign buyer ban
The Prohibition on the Purchase of Residential Property by Non-Canadians Act, which prevents non-Canadians from buying residential property in Canada for two years, went into effect 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.
On November 24, 2022, Bill 44, the Building and Strata Statutes Amendment Act, 2022 (the “Act”), was enacted and removed most rental and age restrictions in strata buildings. The amendments became effective immediately on November 24, 2022.
The Act removed two rights of strata corporations to pass bylaws that could control occupancy, rental and use of strata lots:
- Prohibition of rental restrictions; and
- Removing the right to have age restrictions within a strata building, other than 55+