Summary of Government Real Estate Regulations & Dates

Summary of Government Real Estate Regulations & Dates

City of Vancouver Empty Homes Tax

  • Starting in 2023, the City of Vancouver Empty Homes Tax will be 5% for any homes deemed empty in 2023 (up from 3% in 2022)
  • Declaration Due Date is February 2
  • All homeowners must complete a declaration and confirm exemptions, if applicable
  • Clauses required in CPS to protect buyer

 B.C. Speculation and Vacancy Tax

  • The BC Speculation and Vacancy Tax is 0.5% for Canadian Citizens or Permanent Residents and 2% for foreign owners and satellite families
  • Declaration Due Date is March 31
  • All owners on title must complete a declaration, even if they are spouses
  • Areas covered – Capital Regional District (Victoria and surrounding areas), Metro Vancouver Regional District including Lions Bay and Squamish and out to Langley, Abbotsford, Mission, Chilliwack, Kelowna, West Kelowna, Nanaimo, Lantzville (use link to confirm areas)
  • No clauses needed in CPS to protect buyer

 Canadian Underused Housing Tax

  • Starting in 2023 for the 2022 tax year, an annual 1% tax on the taxable value of a vacant or underused residential property that is directly or indirectly owned by a non-resident non-Canadian
  • CRA filing by April 30th
  • Excluded Owner does not have to file – Canadian Citizens and permanent residents of Canada are Excluded Owners, some exceptions may trigger a requirement to file though
  • All of Canada is covered by this tax
  • No clauses needed in CPS to protect buyer

 B.C. 3-Day Home Buyer Rescission Period

  • Effective January 3, 2023
  • Affects residential properties other than leasehold, auction, court order, presale
  • Provides a buyer with a 3-day rescission period starting the day after acceptance and doesn’t include Saturday, Sunday or holidays as determined by the Interpretations Act
  • If a buyer rescinds, they are required to pay the seller a 0.25% penalty, which can be paid from any deposits held in the brokerage trust account or if no deposits were given, the seller would to pursue the buyer for the penalty
  • Cannot waive the rescission period.
  • Contract of Purchase and Sale must contain the exact rescission amount based on purchase price, the contact for sending rescission notice to, the final acceptance date and the last date rescission can happen.
  • Rescission can be done on the required form by way of registered mail, fax or email with a read receipt.

 B.C. Foreign Buyer Tax

 Canada 2-Year Foreign Buyer Ban

  • Starting January 1, 2023, non-Canadian citizens and non-permanent residents will be prohibited from purchasing residential property in Canada for two years, purchasing either directly or indirectly (meaning buyers not on the contract but a beneficial owner is prohibited)
  • Agreements signed before January 1, 2023 will not be subject to the prohibition.
  • Prohibition covers properties in either a “census agglomeration” or a “census metropolitan area” – for example Whistler is exempt.
  • Affects residential properties and buildings of up to 3 dwelling units (multifamily rental buildings)
  • Includes vacant residential land
  • Applies to individuals and corporations with a non-Canadian with 3% interest or more
  • Some exemptions may apply, see legislation and legal advice required to determine if applicable
  • Contravention of the Act can result in $10,000 for all parties involved (buyer, seller, lawyer/notary, real estate agent and brokerages, lenders, etc) and could result in an order to sell the property and any profit would go to the government.
  • A property may be exempt from the Foreign Buyer Ban but still attract the Foreign Buyer Tax.
  • Have the buyer sign the Certificate and Consent of Purchaser form to confirm they are able to purchase

Anti-Flipping Rule

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