Real Estate Regulation Changes: What You Need to Know
In recent weeks, you may have heard about several new real estate regulation changes in BC and Canada.
Canada’s Foreign Buyer Ban
The Canadian government first announced its 2-year foreign buyer ban to help slow the real estate market in early 2022. The ban took effect on January 1, 2023. This ban prevents non-Canadians and corporations controlled by non-Canadians from purchasing residential property in Canada.
The good news is that both Whistler and Pemberton fall outside the Prohibition on the Purchase of Residential Property by Non-Canadians Act definition of “Residential Property” – which states that the prohibition applies to ‘residential property located in a census metropolitan area or a census agglomeration’. View the census tract reference maps here.
Important Key Facts
- Whistler and Pemberton are excluded from the ban
- Whistler and Pemberton will remain open to investment, despite the ban
BC’s Cooling-Off Period / Home Buyer Rescission Period
Taking effect on January 1, 2023, the Home Buyer Rescission Period allows homebuyers to rescind a contract within three business days after the final acceptance of a firm and binding offer. The rescission period applies to all contracts, regardless of subjects, and cannot be waived by either the seller, buyer, or their representatives. During this period, homebuyers can legally withdraw from the firm and binding offer in exchange for a fee of 0.25% of the purchase price. The ban applied to all residential real estate, with few exceptions, regardless of whether a licensed real estate representative is involved in the transaction.
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If you have any questions about the new regulations, I am here to chat so get in touch and I’d be happy to walk you through the changes.
