HOME BUYER 3 DAY RESCISSION PERIOD (BC wide)
Buyers are now entitled to rescind (cancel) a Contract of Purchase and Sale, within a period of 3 business days, after their offer is accepted, even if it is “unconditional”. If they choose to rescind their offer in this scenario, there is a penalty of .25% of the purchase price, payable to the Seller. This penalty does not apply to deals where conditions cannot be removed, and there are some exemptions for homes on leased land.
NO FOREIGN BUYERS
Prohibition on the Purchase of Residential Property by“Non-Canadians” Act
This means that the Federal government will “prohibit the purchase of residential properties to those who are not Canadian citizens or permanent residents of Canada for a period of 2 years, including corporations that are not incorporated in Canada or are controlled by non-Canadians.
HOME FLIPPING CAPITAL GAIN 12 MONTH TRIGGER (CANADA wide)
As of Dec 15, 2022, if you resell or “flip” a residential property, either an investment property or your principal residence, any price gain may be deemed to be business income and fully taxable. This rule only applies to gains; individuals cannot report a business loss on a property just because it meets the definition of a flipped property. The Fall Economic Statement 2022 also proposes to extend this rule to gains coming from assignment sales or pre-sale residential construction. So if you hold the rights to a pre-construction residential property and sell those rights for a gain within 12 months, the gain will be deemed to have received business income for tax purposes. Some exclusions may be possible where the property is disposed of due to a qualifying life event (divorce, job transfer, etc.)
- LONG TERM RENTALS – Bill 44 removes the ability for strata corporations to enforce bylaws that prohibit or restrict long term rentals (1 month or longer). Short term rental bylaws prohibiting AirBnB or VRBO type of uses may still be enforceable however.
- 55+ AGE RESTRICTION – Only age restrictions of 55+ are enforceable, there can be no other age restrictions
- ELECTRONIC STRATA MEETINGS are now permitted without the need for a bylaw, no secret ballots at electronic meetings, and persons who attend and are verified in electronic meetings are deemed to be present in person.