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Prohibition on the Purchase of Residential Property by Non-Canadians Regulations (SOR/2022-250)

Regulations are current to 2023-01-11 and last amended on 2023-01-01. Previous Versions

Prohibition on the Purchase of Residential Property by Non-Canadians Regulations

SOR/2022-250

PROHIBITION ON THE PURCHASE OF RESIDENTIAL PROPERTY BY NON-CANADIANS ACT

Registration 2022-12-02

Prohibition on the Purchase of Residential Property by Non-Canadians Regulations

P.C. 2022-1259 2022-12-02

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 ActFootnote a.

Marginal note:Definitions

 The following definitions apply in these Regulations.

Act

Act means the Prohibition on the Purchase of Residential Property by Non-Canadians Act. (Loi)

census agglomeration

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

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

control with respect to a corporation or entity, means

  • (a) direct or indirect ownership of shares or ownership interests of the corporation or entity representing 3% or more of the value of the equity in it, or carrying 3% or more of its voting rights; or

  • (b) control in fact of the corporation or entity, whether directly or indirectly, through ownership, agreement or otherwise. (contrôle)

Marginal note:Non-Canadian — prescribed entities

 For the purposes of paragraph (d) of the definition non-Canadian in section 2 of the Act, the following entities are prescribed:

  • (a) an entity formed otherwise than under the laws of Canada or a province; and

  • (b) an entity formed under the laws of Canada or a province 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.

Marginal note:Residential property — exclusion

  •  (1) For 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.

  • Marginal note:Prescribed real property or immovable

    (2) For the purposes of paragraph (c) of the definition of residential property in section 2 of the Act, land that does not contain any habitable dwelling, that is zoned for residential use or mixed use, and that is located within a census agglomeration or a census metropolitan area, is a prescribed real property or immovable.

Marginal note:Purchase

  •  (1) For 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.

  • Marginal note:Exceptions

    (2) However, a purchase referred to in subsection (1) does not include

    • (a) the acquisition by an individual of an interest or a real right resulting from death, divorce, separation or a gift;

    • (b) the rental of a dwelling unit to a tenant for the purpose of its occupation by the tenant;

    • (c) the transfer under the terms of a trust that was created prior to the coming into force of the Act; or

    • (d) the transfer resulting from the exercise of a security interest or secured right by a secured creditor.

Marginal note:Temporary residents — prescribed conditions

 For the purposes of paragraph 4(2)(a) of the Act, the temporary resident must satisfy one of the following conditions:

  • (a) 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,

    • (i) 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,

    • (ii) 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,

    • (iii) the purchase price of the residential property does not exceed $500,000, and

    • (iv) they have not purchased more than one residential property; or

  • (b) if 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,

    • (i) they worked in Canada for a minimum period of three years within the four years preceding the year in which the purchase was made, if the work is full-time work as defined in subsection 73(1) of the Immigration and Refugee Protection Regulations,

    • (ii) they filed all required income tax returns under the Income Tax Act for a minimum of three of the four taxation years preceding the year in which the purchase was made, and

    • (iii) they have not purchased more than one residential property.

Marginal note:Exception — persons

 For the purposes of paragraph 4(2)(d) of the Act, the following classes of persons are prescribed:

  • (a) 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;

  • (b) 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; and

  • (c) persons 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.

Marginal note:Order

  •  (1) An order referred to in subsection 7(1) of the Act may only be made if the following conditions are met:

    • (a) the non-Canadian is the owner of the residential property at the time the order is made;

    • (b) notice has been given to every person who may be entitled to receive proceeds from the sale; and

    • (c) the 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.

  • Marginal note:Conditions of order

    (2) The order made under subsection 7(1) of the Act must provide that the proceeds of the sale are distributed in the following order:

    • (a) 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;

    • (b) 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;

    • (c) the repayment of the non-Canadian of an amount that is not greater than the purchase price they paid for the residential property; and

    • (d) the payment of any amount remaining to the Receiver General for Canada.

Marginal note:Exception — circumstances

 For 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.

Marginal note:Repeal

 These 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.

Marginal note:Coming into force

 These 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.

 
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