On March 27, 2023, the federal government announced amendments intended to relax the restrictions on non-Canadians purchasing residential property in certain circumstances.
These amendments came into force as of March 27, 2023, and are in response to concerns raised by several real estate industry groups to address unintended restrictions that resulted from the initial regulations, the Prohibition on the Purchase of Residential Property by Non-Canadians Regulations (Regulations).
The Regulations had come into force on January 1, 2023, in tandem with the Prohibition on the Purchase of Residential Property by Non-Canadians Act (Act). They are effective for two years and prohibit non-Canadians from purchasing residential property.
The broad scope of the Act and Regulations and ambiguity in definitions resulted in uncertainty on several commercial property acquisitions and lending transactions.
The amendments announced in March 2023 (Amendments) clarify the application of the Act and the Regulations on these issues, and other issues. In addition, the Canada Mortgage and Housing Corporation (CMHC), which was instrumental in drafting the Act, Regulations and Amendments, published several new FAQs, which give further guidance. The CMHC FAQs are not considered law but provide a plain-language guide to interpreting the Act, Regulations and Amendments.
Source : JD Supra