Vendor Beware: Foreign Ownership Ban Just Around The Corner

Earlier this year, the federal government introduced the Prohibition on the Purchase of Residential Property by Non-Canadians Act (the "Act")¹, which comes into force on January 1, 2023. The stated purpose of the Act is to address Canada's housing affordability crisis.

The Prohibition

The Act will prohibit non-Canadians from purchasing residential property anywhere in Canada, directly or indirectly², for a period of two years ending December 31, 2024 (the "Prohibition").

Non-Canadians are defined in the Act³ as:

1. an individual who is neither a Canadian citizen nor a person registered as an Indian under the Indian Act⁴ nor a permanent resident;
2. a corporation that is neither incorporated under the laws of Canada nor of a province;