{"id":17169,"date":"2025-12-02T12:13:21","date_gmt":"2025-12-02T12:13:21","guid":{"rendered":"https:\/\/tst.wordpress.realogydev.com\/cartus\/uncategorized\/prohibition-on-the-purchase-of-residential-property-by-non-canadians-act\/"},"modified":"2025-12-02T12:13:21","modified_gmt":"2025-12-02T12:13:21","slug":"prohibition-on-the-purchase-of-residential-property-by-non-canadians-act","status":"publish","type":"post","link":"https:\/\/tst.wordpress.realogydev.com\/cartus\/insights\/blog\/prohibition-on-the-purchase-of-residential-property-by-non-canadians-act\/","title":{"rendered":"Prohibition on the Purchase of Residential Property by Non-Canadians Act"},"content":{"rendered":"","protected":false},"excerpt":{"rendered":"","protected":false},"author":26,"featured_media":17170,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"wds_primary_category":0,"footnotes":""},"categories":[23,52,198],"tags":[119,350,291,215,349],"class_list":["post-17169","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-country-information","category-real-estate","tag-canada","tag-homesale","tag-property-market","tag-real-estate","tag-residential-property"],"acf":{"blog_type":"Long Blog","category_type":"blogs","dont_display_published_date_in_blog_landing_tile":false,"hero_image":17171,"story_section_topic":"","story_section_description":"","rich_text_content1":"","rich_text_content2":"

Legal Changes for Home Sale in Canada<\/h2>In an effort to slow the rising cost of housing in Canada, on September 11, 2022 the federal government proclaimed it will prohibit foreigners from purchasing homes for two years. Effective January 1, 2023, the Prohibition on the Purchase of Residential Property by Non-Canadians Act will ban non-Canadians from buying residential property. As it stands now, this will impact the Canadian Employee Relocation Industry. A \u201cnon-Canadian\u201d under the new law includes companies not incorporated under Canadian federal or provincial laws. A \u201cnon-Canadian\u201d also includes companies that are incorporated under Canadian law, if that company is not listed on a Canadian stock exchange and is controlled by a company incorporated outside of Canada (such as a US company).\n\nUnder the premise of this law, Relocation Management Companies (RMCs) that are deemed to be non-Canadian will not be able to acquire residential properties in Canada as of January 1, 2023. Therefore, Cartus will not be able to offer Guaranteed Buyout Offer programs in Canada. Home sale assistance in Canada will need to be limited to Direct Reimbursement. Reimbursements of closing costs would remain non-taxable in Canada for Canadian residents. In addition, this legislation will prevent non-Canadian RMCs from offering BVO or Amended Sales programs. This may have tax consequences for transferees selling homes in Canada and relocating to the US.\n\nCartus is still gathering information on this topic. In certain circumstances, exemptions may be available to foreign individuals residing in Canada, such as those working under federally issued work permits. The Canadian Employment Relocation Council (CERC) is consulting with its partners, including the Worldwide ERC, to present to the Canadian government a solution that is sustainable for the relocation industry. However, we do not anticipate that any changes to this new law or related regulations will happen soon. Therefore, it is important that our clients begin considering potential policy changes where a guaranteed buyout program is currently offered and what changes may need to occur.\n\n","title":"","sub_title":"","sub_text":"","display_primary_cta":true,"label_for_primary_cta":"","download_pdf_or_link":false,"download_pdf":null,"download_link":"","primary_video_or_image":false,"primary_image":17172,"primary_video":{"video_title":"","video_type":"youtube","video_id":""},"rich_text_content3":"

Policy Considerations<\/h2>
  1. For all employees with homes to sell in Canada, Cartus cannot acquire the homes on or after January 1, 2023. Therefore, for at least the next two years, beginning January 1, 2023, Cartus can provide Marketing Assistance and reimbursement of closing costs.\n\n<\/li>
  2. For those employees living in Canada with a home to sell who will be moving crossing borders into the US, there may be tax implications if the employee cannot go through a protected program like a Guaranteed Buyout or Buyer Value Option.\n\n<\/li>
  3. As the market slows in Canada, it is possible that employees will need additional temporary living or duplicate housing support which can be either changed in the client\u2019s policy or be handled on an exception basis.\n\n<\/li>
  4. With the elimination of a Guaranteed Buyout, thought will need to be given about temporarily suspending Equity Advances.\n\n<\/li>
  5. There will be a partial cost offset by the elimination of appraisals, inspections and inventory during this time.\n\n<\/li><\/ol>

    Next Steps<\/h2>Cartus will continue to investigate this situation and see if there are any alternatives. Your account manager will be in touch with you regarding this new legislation and we will provide updates as further information becomes available.\n\n","secondary_video_or_image":false,"secondary_image":null,"secondary_video":{"video_title":"","video_type":"youtube","video_id":""},"rich_text_content4":"","rich_text_header_with_bullet_points":"","left_section_content":"","left_section_video_or_image":false,"left_section_video":{"video_title":"","video_type":"youtube","video_id":""},"left_section_image":null,"right_section_content":"","right_section_video_or_image":false,"right_section_video":{"video_title":"","video_type":"youtube","video_id":""},"right_section_image":null,"category_title":"CATEGORY","tags_title":"TAGS","category_name":"","entry_title":"Cartus|LongBlog|Prohibition-on-the-Purchase-of-Residential-Property-by-Non-Canadians-Act","publishing_date_blog":"2022-10-20 11:00:00","description":"With the Prohibition on the Purchase of Residential Property by Non-Canadians Act, 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