5 Exceptions to the Foreign Buyers Ban

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Key Takeaway
Save this newsletter as a quick reference guide to determine if a potential client qualifies for an exception to the Foreign Buyers Ban.

I still get a lot of questions about the Foreign Buyers Ban - and rightfully so, it's been amended and extended and written in very unclear language.

But everyone really just wants to know about the exceptions.

Quick Recap:
The Foreign Buyer ban prohibits Non-Canadians from purchasing residential property until January 1, 2027.

A Non-Canadian is a person who is not: A Canadian citizen, A permanent resident, or Registered as an Indian under the Indian Act.

So in the most clear and non-lawyer sounding way, let's look at 5 exceptions:

  1. Purchasing with a Spouse or Common-Law Partner
    A Non-Canadian can purchase property if they do so with their Spouse or Common-Law Partner.
  2. Temporary Residents
    This includes international students or individuals with a work permit. Temporary residents must meet certain criteria, which differ for students and workers.
  3. Acquisition by Death, Divorce, Deparation, or Gift
    The legislation prohibits a Non-Canadian from "purchasing" property. However, acquiring property through inheritance, divorce, separation, or as a gift is not considered a purchase.
  4. Vacant Land
    The Ban applies to Residential Property. Initially, vacant land was also included in this definition. However, the regulations have been amended, and now vacant land can once again be purchased by Non-Canadians.
  5. A Property Not Located Within a "CA” or a “CMA”
    If a property is not within a census agglomeration or a census metropolitan area (basically, not in or near a city or large town), it is excluded from the ban. This means Non-Canadians can buy residential properties in these rural areas. CMHC created a tool to identify these areas here.

I've provided links in each heading that will take you directly to the specific clause in the Regulations where you can find more details about each exception.

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Written by
Zachary Soccio-Marandola
Real Estate Lawyer

Direct: (647) 797-6881
Email: zachary@socciomarandola.com
Website: www.socciomarandola.com

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