Foreign Buyer Ban in Canada

The Prohibition on the Purchase of Residential Property by Non-Canadians Act, commonly referred to as the Foreign Buyer Ban, came into force on January 1, 2023. This is a federal law that applies across Canada, including British Columbia, and restricts certain non-Canadians from purchasing specific types of residential property.

The legislation was amended on March 27, 2023, introducing expanded exemptions and clarifications. The prohibition is currently scheduled to remain in effect until January 1, 2027, subject to further legislative changes.

Elite Law Conveyancing assists clients by identifying conveyancing requirements early, coordinating with realtors and lenders, and supporting clients through each stage of the transaction.

Who may be affected?

In general terms, the restriction applies to individuals and entities considered “non-Canadians”, which may include:

• Individuals who are not Canadian citizens, permanent residents, or registered under the Indian Act.

• Corporations or entities that are formed outside Canada, or that meet prescribed thresholds of non-Canadian ownership or control.

What types of property does this ban apply?

The Act applies to certain residential property, such as:

• Detached or similar buildings with up to three dwelling units

• Semi-detached homes, rowhouses, and condominium units

The Regulations clarify that the prohibition generally applies to properties located within Census Metropolitan Areas (CMAs) or Census Agglomerations (CAs). Residential property located outside these areas may be excluded.

Are there exceptions for foreigners?

Depending on the circumstances, exceptions may apply, including for:

• Certain temporary residents (such as work permit holders) who meet prescribed conditions

• Vacant land zoned for residential use

• Certain development-related acquisitions

• Transfers not considered a “purchase,” such as those arising from death or separation.

Why does this for conveyancing in BC?

Even where a transaction may be permitted under federal law, real estate transactions in British Columbia are still subject to provincial conveyancing requirements, including Property Transfer Tax, Landowner Transparency Registry filings, and Land Title Office registration.