One Down, Three to Go: Foreign Ownership Ban on Residential Property Extended to January 1, 2027

On February 4, 2024, the federal government announced its intention to extend, by two years, the ban on foreign ownership of residential property, which first came into force on January 1, 2023. Under subsection 237(2) of the Budget Implementation Act, 2022, No. 1 (the “Budget Implementation Act”), the ban was originally set to be repealed on January 1, 2025 (meaning that, as of January 2, 2025, non-Canadians under the meaning of the Prohibition on the Purchase of Residential Property by Non-Canadians Act, S.C. 2022, c. 10, s. 235 (the “Prohibition Act”) would again be able to purchase residential property in Canada). While the federal government has not yet introduced a bill that amends the Prohibition Act, or the language in subsection 237(2) of the Budget Implementation Act to extend the date on which the Prohibition Act is repealed to January 1, 2027, it is expected that the federal government will do so, sometime this year.

As a recap, the Prohibition Act prohibits non-Canadians from purchasing residential property in Canada, subject to a number of exceptions. To learn more, we invite you to read our previous blog post

Lawson Lundell LLP’s Real Estate Group will continue to monitor for any updates relating to this topic, and will update this blog accordingly. For any inquiries, please contact the writers or any other member of Lawson Lundell LLP’s Real Estate Group.

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