Marginal note:Short title

1 This Act may be cited as the Prohibition on the Purchase of Residential Property by Non-Canadians Act.

Marginal note:Definitions

2 The 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

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  (a) an individual who is neither a Canadian citizen nor a person registered as an Indian under the Indian Act nor a permanent resident;

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  (b) a corporation that is incorporated otherwise than under the laws of Canada or a province;

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  (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

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  (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

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  (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;

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  (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

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  (c) any prescribed real property or immovable. (immeuble résidentiel)

Marginal note:Designation of Minister

3 The Governor in Council may, by order, designate any federal minister to be the Minister for the purposes of this Act.

Marginal note:Prohibition

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  4 (1) Despite section 34 of the Citizenship Act, it is prohibited for a non-Canadian to purchase, directly or indirectly, any residential property.

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  Marginal note:Exception — persons

  (2) Subsection (1) does not apply to

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    (a) a temporary resident within the meaning of the Immigration and Refugee Protection Act who satisfies prescribed conditions;

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    (b) a protected person within the meaning of subsection 95(2) of that Act;

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    (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

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    (d) a person of a prescribed class of persons.

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  Marginal note:Exception — circumstances

  (3) Subsection (1) does not apply in prescribed circumstances.

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  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.

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  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

5 The contravention of section 4 does not affect the validity of the sale of the residential property to which the contravention relates.

Marginal note:Offence

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  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.

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  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:

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    (a) an officer, director or agent or mandatary of the corporation or entity;

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    (b) a senior official of the corporation or entity;

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    (c) any individual authorized to exercise managerial or supervisory functions on behalf of the corporation or entity.

Marginal note:Order

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  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.

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  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

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  8 (1) The Governor in Council may, on the recommendation of the Minister after consultation with the Minister of Finance, make regulations

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    (a) defining “control” for the purposes of this Act;

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    (b) respecting what constitutes a purchase for the purposes of this Act;

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    (c) respecting the making of orders under section 7; and

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    (d) prescribing anything that by this Act is to be prescribed.

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  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.