The Canadian Federal Government & BC Provincial Government plan to introduce 2 pieces of legislation in January 2023 which will affect some BC Real Estate Buyers and Sellers.
Here are some basic details, so that you can check whether they affect you!
Ban on Foreign Buyers of Residential Real Estate in Canada
From January 2023 the Federal Government plans to impose a temporary ban on Non-Canadians purchasing various types of residential real estate, for 2 years. This is featured in the Prohibition on the Purchase of Residential Property by Non-Canadians Act 2022
There is a fair amount that we don’t know yet, for example, have they finished creating exemptions.
So all Non- Canadian Buyers who are thinking of making a purchase, make your purchase before the end of December!
Buyers should also speak to their Canadian Real Estate Lawyer, about the implications of this Act, and how it may affect them, to avoid any nasty surprises or fines.
Full details of the proposed Act are shared in the link below.
BC Home Buyers Rescission Period
This legislation is expected to come into practice from January 2023. It will bring into force a ‘Cooling Off’ period for Buyers. This will allow a Buyer who has an Accepted Offer in place to be released from the deal within 3 business days. The 3-day period starts the day after the Contract is signed.
This will apply to Residential & Manufactured Homes, and there will be a fee for triggering the rescission of the Real Estate Contract. All other conditions will not be affected.
A Buyer who uses this right to rescind will be subjected to a 0.25% fee. This will apply to any transactions made using a Real Estate Agent and ‘For Sale by Owner’, and will be payable to the Seller.
There are some exceptions – E.G certain forms of Lease Land, Assignments of Contract, Court ordered sales and sales via Auction.
Each Buyer will also receive a Disclosure from their Real Estate Agent detailing the Rescission Fee.