S.C. 2022, c. 10, s. 235
Assented to 2022-06-23
An Act to prohibit the purchase of residential property by non-Canadians
[Enacted by section 235 of chapter 10 of the Statutes of Canada, 2022, in force January 1, 2023.]
Marginal note:Short title
1This Act may be cited as the Prohibition on the Purchase of Residential Property by Non-Canadians Act.
Marginal note:Definitions
2The following definitions apply in this Act.
- common-law partner
common-law partner, in relation to an individual, means a person who is cohabiting with the individual in a conjugal relationship, having so cohabited for a period of at least one year. (conjoint de fait)
- control
control has the meaning assigned by the regulations. (contrôle)
- dwelling unit
dwelling unit means a residential unit that contains private kitchen facilities, a private bath and a private living area. (local d’habitation)
- Minister
Minister means the federal minister designated under section 3. (ministre)
- non-Canadian
non-Canadian means
(a)an individual who is neither a Canadian citizen nor a person registered as an Indian under the Indian Act nor a permanent resident;
(b)a corporation that is incorporated otherwise than under the laws of Canada or a province;
(c)a corporation incorporated under the laws of Canada or a province whose shares are not listed on a stock exchange in Canada for which a designation under section 262 of the Income Tax Act is in effect and that is controlled by a person referred to in paragraph (a) or (b); and
(d)a prescribed person or entity. (non-Canadien)
- permanent resident
permanent resident has the same meaning as in subsection 2(1) of the Immigration and Refugee Protection Act. (résident permanent)
- prescribed
prescribed means prescribed by regulation. (Version anglaise seulement)
- residential property
residential property means any real property or immovable, other than a prescribed real property or immovable, that is situated in Canada and that is
(a)a detached house or similar building, containing not more than three dwelling units, together with that proportion of the appurtenances to the building and the land subjacent or immediately contiguous to the building that is reasonably necessary for its use and enjoyment as a place of residence for individuals;
(b)a part of a building that is a semi-detached house, rowhouse unit, residential condominium unit or other similar premises that is, or is intended to be, a separate parcel or other division of real property or immovable owned, or intended to be owned, apart from any other unit in the building, together with that proportion of any common areas and other appurtenances to the building and the land subjacent or immediately contiguous to the building that is attributable to the house, unit or premises and that is reasonably necessary for its use and enjoyment as a place of residence for individuals; or
(c)any prescribed real property or immovable. (immeuble résidentiel)
Marginal note:Designation of Minister
3The Governor in Council may, by order, designate any federal minister to be the Minister for the purposes of this Act.
Marginal note:Prohibition
4(1)Despite section 34 of the Citizenship Act, it is prohibited for a non-Canadian to purchase, directly or indirectly, any residential property.
Marginal note:Exception — persons
(2)Subsection (1) does not apply to
(a)a temporary resident within the meaning of the Immigration and Refugee Protection Act who satisfies prescribed conditions;
(b)a protected person within the meaning of subsection 95(2) of that Act;
(c)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); or
(d)a person of a prescribed class of persons.
Marginal note:Exception — circ*mstances
(3)Subsection (1) does not apply in prescribed circ*mstances.
Marginal note:Foreign state
(4)For greater certainty, nothing in subsection (1) is to be construed as hindering a foreign state from purchasing residential property for diplomatic or consular purposes.
Marginal note:Non-application
(5)Subsection (1) does not apply if the non-Canadian becomes liable or assumes liability under an agreement of purchase and sale of the residential property before the day on which this Act comes into force.
Marginal note:Validity
5The contravention of section 4 does not affect the validity of the sale of the residential property to which the contravention relates.
Marginal note:Offence
6(1)Every non-Canadian that contravenes section 4 and every person or entity that counsels, induces, aids or abets or attempts to counsel, induce, aid or abet a non-Canadian to purchase, directly or indirectly, any residential property knowing that the non-Canadian is prohibited under this Act from purchasing the residential property is guilty of an offence and liable on summary conviction to a fine of not more than $10,000.
Marginal note:Party to offence
(2)If a corporation or entity commits an offence, any of the following persons that directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and liable for the offence whether or not the corporation or entity has been prosecuted or convicted:
(a)an officer, director or agent or mandatary of the corporation or entity;
(b)a senior official of the corporation or entity;
(c)any individual authorized to exercise managerial or supervisory functions on behalf of the corporation or entity.
Marginal note:Order
7(1)If a non-Canadian is convicted of having contravened section 4, the superior court of the province in which the residential property to which the contravention relates is situated may, on application of the Minister, order the residential property to be sold in the prescribed manner and under prescribed conditions.
Marginal note:Terms
(2)Subject to the regulations, the superior court may make the order subject to any terms that it considers appropriate.
Marginal note:Regulations
8(1)The Governor in Council may, on the recommendation of the Minister after consultation with the Minister of Finance, make regulations
(a)defining “control” for the purposes of this Act;
(b)respecting what constitutes a purchase for the purposes of this Act;
(c)respecting the making of orders under section 7; and
(d)prescribing anything that by this Act is to be prescribed.
Marginal note:Paragraph (1)(c)
(2)Regulations made under paragraph (1)(c) must provide that no non-Canadian receive from the proceeds that results from a sale of a residential property ordered under section 7 more than the purchase price they paid for the residential property.
The Prohibition on the Purchase of Residential Property by Non-Canadians Act, which came into force on January 1, 2023, is a significant legislative step taken by the Canadian government to regulate the acquisition of residential property by non-Canadians within the country.
The Act's primary purpose is to restrict non-Canadians from purchasing residential properties in Canada. It categorizes "non-Canadian" individuals or entities and defines "residential property" extensively to encompass various types of housing units or real estate.
The Act clearly defines terms like "common-law partner," "control," "dwelling unit," "Minister," "non-Canadian," "permanent resident," "prescribed," and "residential property." For instance, a "dwelling unit" is specified as a residential space containing private kitchen facilities, a bath, and a living area, while a "non-Canadian" encompasses individuals, corporations, and prescribed entities who aren't Canadian citizens, registered under the Indian Act, or permanent residents.
Section 4 of the Act prohibits non-Canadians from directly or indirectly purchasing any residential property, with specific exceptions outlined in subsections (2) and (3). These exceptions include temporary residents under certain conditions, protected persons, and individuals purchasing property with a Canadian spouse or partner.
Moreover, the Act addresses scenarios related to diplomatic or consular property purchases by foreign states and situations where liability under a purchase agreement arises before the Act's enforcement date.
The legislation imposes penalties for contravention, with fines up to $10,000 for non-Canadians violating the purchase prohibition, along with repercussions for individuals or entities aiding or abetting such contraventions.
Additionally, the Act introduces provisions to deal with contraventions, ensuring the validity of property sales despite contraventions and empowering the courts to order the sale of properties linked to contraventions, subject to certain terms and regulations.
Regulations play a crucial role in implementing the Act effectively. They can define terms like "control," specify purchase conditions, govern court orders related to property sales, and prescribe other necessary aspects for the Act's enforcement.
This Act reflects Canada's efforts to regulate property ownership, ensuring access to residential spaces primarily for citizens, permanent residents, and those meeting specified criteria while preventing speculative or unchecked acquisitions by non-Canadians.
Feel free to ask for further clarification or details on specific sections of the Act!
