Prohibition on the Purchase of Residential Property by Non-Canadians Act
Rules
● Non-Canadians are prohibited from purchasing residential properties in Canada for a period of two
years, beginning on January 1, 2023
● A ‘residential property’ includes detached homes or similar buildings, semi-detached homes, rowhouse
units and residential condominium units
Penalties
● A non-Canadian that contravenes the prohibition can be fined up to $10,000
● Any person or entity that knowingly assists a non-Canadian in contravening the prohibition can be
fined up to $10,000
● A court may order the sale of a property purchased if a non-Canadian is found to have acquired
property in contravention of the Act; any such court-ordered sale will result in the non-Canadian
receiving no more than the purchase price paid for the residential property
Exemptions include, but are not limited to:
● International students, temporary residents, refugees and refugee claimants
● Recreational properties
● Any residential property found outside of a Census Metropolitan Area (CMAs must have a
total population of at least 100,000 of which 50,000 or more must live in the core), or a Census
Agglomeration (CAs must have a core population of at least 10,000)
● Any purchase made by a non-Canadian with their spouse or common-law partner who is a Canadian
citizen
● Any purchase made by a person registered under the Indian Act
Implementation
● The Act does not introduce compliance requirements applicable to professionals and does not rely on
third parties for enforcement purposes
● The Act allows for the imposition of penalties on any party found guilty of knowingly assisting a nonCanadian in contravening the prohibition
Helpful resources for real estate professionals
Despite record keeping not being a mandatory obligation, CREA recommends REALTORS® perform due
diligence and mitigate risk. CREA has developed a certificate entitled Certification and Consent of Purchaser.
The association recommends the certificate be completed before assisting or advising a potential purchaser,
and notes that it should be used in combination with other due diligence practices.
