Prohibition on the purchase of residential property by non-Canadians Explained:

Provided by OACIQ:

Since January 1, 2023, non-Canadians have been prohibited from purchasing residential property in Canada for a period of two years.1

The aim of the Prohibition on the Purchase of Residential Property by Non-Canadians Act, adopted by the federal Parliament in June 2022, is to reduce foreign funds in the Canadian residential market and thus slow down real estate speculation.

This prohibition applies to residential properties only and will therefore have no impact on commercial brokerage activities. Already in fall 2022, the OACIQ, as regulator and member of the Real Estate Regulators of Canada, has undertaken steps with both the Canada Mortgage and Housing Corporation (CMHC) and the Minister in charge of enforcing this Act to obtain clarifications, especially regarding licensees' obligations under this new regulation. The CMHC has published on its website information in this regard and frequently asked questions that reflect the position of the CMHC. We invite you to check out this article regularly: Ensuring housing market remains available to Canadians. The Act in brief The prohibition does NOT apply to:

• Canadian citizens

• Permanent residents

• Persons registered under the Indian Act

• Temporary residents within the meaning of the Immigration and Refugee Protection Act who satisfy the conditions set out in the Prohibition on the Purchase of Residential Property by Non-Canadians Regulations2

• Protected persons within the meaning of subsection 95(2) of the Immigration and Refugee Protection Act

• Individuals who are non-Canadians and who purchase residential property in Canada with their spouse or common-law partner if the latter is not subject to the prohibition

• Corporations incorporated under federal or provincial law, unless they are controlled by non-Canadians

• Foreign states purchasing residential property for diplomatic or consular purposes

• Other categories of persons covered by the implementing regulations.

Immovable (or real property) subject to the prohibition

• A detached house (or similar building), containing not more than three dwelling units

• A part of a building that is a semi-detached house or rowhouse unit

• Condominium unit

• Vacant land zoned for residential use or mixed use that is located within a census agglomeration or a census metropolitan area You may consult these data on the Statistics Canada website.

In addition, properties located outside of census agglomerations and census metropolitan areas, such as recreational properties, are not covered by the prohibition.