What does the CMHC say?
In its most recent post, CMHC has received public feedback and is working to finalize the details and regulations under the Act, and how to enforce it.
CMHC's summary of the legislation is:
"The Act prohibits non-Canadians from purchasing residential property in Canada for 2 years. This act doesn’t affect Canadians and permanent residents. There may be exemptions for certain groups of people, types of residential property, and particular circumstances – these have not yet been established. (Once we’ve reviewed your feedback, we can establish the exemptions.)
- restricts non-Canadians from avoiding the prohibition by using corporations or other entities to purchase residential property
- allows the Government to clarify the scope and application of the prohibition, including by defining what is meant by “control,” and further elaborating what constitutes a “purchase”
- establishes penalties for non-compliance applicable to non-Canadians and any person or entity knowingly assisting a non-Canadian in contravening the Act
Any person or entity that knowingly assists a non-Canadian in contravening the prohibition, is guilty of an offence and liable on summary conviction to a fine of up to $10,000.
If a non-Canadian is convicted of having contravened the prohibition, the superior court of the province in which the residential property to which the contravention relates is situated may, on application of the responsible Minister, order the residential property to be sold.
The Act establishes that any such court-ordered sale will result in the non-Canadian receiving no more than the purchase price paid for the residential property."
And they have a more detailed FAQ section which covers off on some questions, including whether recreational property (Whistler) will or will not be included. And I expect final details to come right before the deadline on January 1st. 2023.
You can read CMHC's article HERE
(CMHC stands for Canada Mortgage & Housing Corporation)
Posted by Denise Brown on