The implementation of the two-year foreign-buyer ban in Canada has caused confusion among realtors across the country. While many real estate professionals believe the ban will not have a major impact on the national real estate market due to the small number of foreign-buyers, they are still trying to get clarification on certain aspects of the regulations.
Non-Canadians are not allowed to purchase residential properties in Canada with a few exceptions. These exceptions include homes that are located outside census metropolitan areas (CMAs) and census agglomerations (CAs). CMAs and CAs are regions that are defined by Statistics Canada according to their population size and commuting patterns. CMAs must have a population of at least 100,000 while CAs must have a population of at least 10,000.
Realtors are trying to get a better understanding of the regulations and how they may affect their businesses. However, the federal government has yet to provide specific details on the legislation, which has caused some confusion in the real estate industry.
In the meantime, it is important for realtors to be aware of the new foreign-buyer ban, and to be mindful of the exceptions that may apply. They should also be prepared to answer questions from clients who may be interested in purchasing a property in Canada.
Overall, the implementation of the two-year foreign-buyer ban in Canada has caused some uncertainty in the real estate industry, but it is expected to have little impact on the national market. Realtors should remain informed about the specifics of the legislation and be aware of the exceptions that may apply.
Not that clear to Real Estate Professionals
The federal government recently implemented legislation restricting foreign buyers from purchasing real estate in certain census areas of Canada. This has caused a lot of confusion amongst realtors, who are now unsure of what exactly the boundaries of these areas are. Elton Ash, executive vice-president of Re/Max Canada, expressed his concerns about the late release of the regulations, as well as the fact that realtors are being held accountable for any potential circumvention of the rules.
Don Kottick, president and CEO of Sotheby’s International Realty Canada, believes the impact of this legislation will be minimal, since historically, foreign buyers only account for two to three percent of the market. Nevertheless, the confusion surrounding the policy has forced some realtors to seek legal advice in order to ensure they comply with all the regulations.
Overall, the foreign buyer’s legislation has caused a lot of confusion and uncertainty amongst realtors in Canada. The late release of the regulations has made it difficult for realtors to understand the boundaries of these census areas and the potential consequences of breaking the rules. Despite this, the impact of the legislation is expected to be minimal, since foreign buyers only account for a small portion of the market.
Buyers Left Wondering
The British Columbia Real Estate Association (BCREA) has recently implemented a Foreign Buyers Ban in order to limit the number of foreign buyers purchasing residential properties in the province. The ban applies to all buyers who are not Canadian citizens or permanent residents, or who have not been in Canada for at least 12 months.
Despite the ban, there are still some foreign buyers that are able to purchase property in the province. This is due to certain exemptions to the ban. For example, ex-pats who are married to non-Canadians and living outside of the country may be able to put the Canadian on the title and purchase property. However, there is still some ambiguity surrounding the details of the exemptions and the BCREA is actively engaging in ongoing dialogue with policymakers and other stakeholders in order to clarify the ambiguities.
Overall, the BCREA’s Foreign Buyers Ban has been put in place in order to limit the number of foreign buyers purchasing residential properties in the province. However, there are still certain exemptions to the ban that allow some foreign buyers to purchase property. The details of these exemptions are still unclear, however, so the BCREA is engaging in ongoing dialogue with policymakers and other stakeholders in order to clarify the ambiguities. According to Hawker, only 10 to 15 foreign buyers typically purchase residential properties in the Canmore area each year, out of a total of 556 transactions that took place in the market last year.
There's still a lot to figure and surely some of the debates will make it to the court systems. In the meantime, buyers and real estate professionals will need to do their best completing the needed due diligence to safely navigate the legislation.