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PROHIBITION ON THE PURCHASE OF RESIDENTIAL PROPERTY BY NON-CANADIANS ACTProhibition on the Purchase of Residential Property by Non-Canadians RegulationsP.C.2022-1259202212
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Her Excellency the Governor General in Council, on the recommendation of the Minister of Housing and Diversity and Inclusion after consultation with the Minister of Finance, makes the annexed Prohibition on the Purchase of Residential Property by Non-Canadians Regulations under section 8 of the Prohibition on the Purchase of Residential Property by Non-Canadians Acta.S.C. 2022, c. 10, s. 235
DefinitionsThe following definitions apply in these Regulations.Act means the Prohibition on the Purchase of Residential Property by Non-Canadians Act. (Loi)census agglomeration means a census agglomeration within the meaning of the Statistics Canada document entitled Standard Geographical Classification (SGC) 2021. (agglomération de recensement)census metropolitan area means a census metropolitan area within the meaning of the Statistics Canada document entitled Standard Geographical Classification (SGC) 2021. (région métropolitaine de recensement)control with respect to a corporation or entity, meansdirect or indirect ownership of shares or ownership interests of the corporation or entity representing 10% or more of the value of the equity in it, or carrying 10% or more of its voting rights; orcontrol in fact of the corporation or entity, whether directly or indirectly, through ownership, agreement or otherwise. (contrôle)SOR/2023-66, s. 1
Non-Canadian — prescribed entitiesFor the purposes of paragraph (d) of the definition non-Canadian in section 2 of the Act, the following entities are prescribed:an entity formed otherwise than under the laws of Canada or a province; andan entity formed under the laws of Canada or a province – whose shares or ownership interests 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 controlled by an entity referred to in paragraph (a) or controlled by a person referred to in paragraph (a), (b) or (c) of the definition non-Canadian in section 2 of the Act.SOR/2023-66, s. 2
Residential property — exclusionFor the purposes of the portion of the definition residential property in section 2 of the Act before paragraph (a), a property that is located in an area of Canada that is not within either a census agglomeration or a census metropolitan area is a prescribed real property or immovable.[Repealed, SOR/2023-66, s. 3]SOR/2023-66, s. 3
PurchaseFor the purposes of the Act, the acquisition, with or without conditions, of a legal or equitable interest or a real right in a residential property constitutes a purchase.ExceptionsHowever, a purchase referred to in subsection (1) does not includethe acquisition by an individual of an interest or a real right resulting from death, divorce, separation or a gift;the rental of a dwelling unit to a tenant for the purpose of its occupation by the tenant;the transfer under the terms of a trust that was created prior to the coming into force of the Act;the transfer resulting from the exercise of a security interest or secured right by a secured creditor; orthe acquisition by a non-Canadian of residential property for the purposes of development.SOR/2023-66, s. 4
Temporary residents — prescribed conditionsFor the purposes of paragraph 4(2)(a) of the Act, the temporary resident must satisfy one of the following conditions:if they are enrolled in a program of authorized study at a designated learning institution, as defined in section 211.1 of the Immigration and Refugee Protection Regulations,they filed all required income tax returns under the Income Tax Act for each of the five taxation years preceding the year in which the purchase was made,they were physically present in Canada for a minimum of 244 days in each of the five calendar years preceding the year in which the purchase was made,the purchase price of the residential property does not exceed $500,000, andthey have not purchased more than one residential property; orif they hold a work permit, as defined in section 2 of the Immigration and Refugee Protection Regulations, or are authorized to work in Canada under section 186 of those Regulations,they have 183 days or more of validity remaining on their work permit or work authorization on the date of purchase, andthey have not purchased more than one residential property.[Repealed, SOR/2023-66, s. 5]SOR/2023-66, s. 5
Exception — personsFor the purposes of paragraph 4(2)(d) of the Act, the following classes of persons are prescribed:foreign nationals who hold a passport that contains a valid diplomatic, consular, official or special representative acceptance issued by the Chief of Protocol for the Department of Foreign Affairs, Trade and Development;foreign nationals, with valid temporary resident status, whose temporary resident visa was issued, or temporary resident status was granted, following an exemption provided under section 25.2 of the Immigration and Refugee Protection Act, if the Minister is of the opinion that the exemption was justified based on public policy considerations to provide safe haven to those fleeing conflict; andpersons that have made a claim for refugee protection in accordance with subsection 99(3) of the Immigration and Refugee Protection Act, if that claim has been found eligible and referred to the Refugee Protection Division under subsection 100(1) of that Act.
OrderAn order referred to in subsection 7(1) of the Act may only be made if the following conditions are met:the non-Canadian is the owner of the residential property at the time the order is made;notice has been given to every person who may be entitled to receive proceeds from the sale; andthe superior court of the province is satisfied that the impact of the order would not be disproportionate to the nature and gravity of the contravention, the circumstances surrounding the commission of the contravention and the resulting conviction.Conditions of orderThe order made under subsection 7(1) of the Act must provide that the proceeds of the sale are distributed in the following order:the payment of the costs of the sale, including the costs incurred by the Minister in bringing the application for the order and any unpaid fines by the non-Canadian under the Act;the payment of those, other than the non-Canadian, who are entitled to receive the proceeds of the sale in amounts and according to priorities that the superior court may determine;the repayment of the non-Canadian of an amount that is not greater than the purchase price they paid for the residential property; andthe payment of any amount remaining to the Receiver General for Canada.
Exception — circumstancesFor the purposes of subsection 4(3) of the Act, subsection 4(1) of the Act does not apply if it is incompatible with the rights recognized and affirmed by section 35 of the Constitution Act, 1982.
RepealThese Regulations are repealed on the day on which section 236 of the Budget Implementation Act, 2022, No. 1, chapter 10 of the Statutes of Canada, 2022, comes into force.
Coming into forceThese Regulations come into force on January 1 2023, but if they are registered after that day, they come into force on the day on which they are registered.
SOR/2023-662023-03-27