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[BUYING AND SELLING REAL ESTATE IN CANADA - ONTARIO]
12. assignment and assumption of warranties and guarantees; 13. assignment and assumption of contracts; 14. mortgage assumption agreement, if applicable; 15. tenant estoppel certificates (pre- closing), if applicable; 16. general conveyance; 17. purchaser's covenant to self-assess, pay HST and indemnify vendor.
Canadians Act was passed by the Parliament of Canada on June 23, 2022, and came into effect on January 1, 2023, along with the Prohibition on the Purchase of Residential Property by Non-Canadians Regulations (the " Regulation "). This Act prohibits non-Canadians (including individuals and individuals using corporations) from purchasing certain residential property anywhere in Canada, for a period of 2 years, with certain exceptions for persons who enjoy protected status or are married to a Canadian. In its 2022 Budget, the Federal Government confirmed that the Act only applies to residential properties in either a "census agglomeration" (area of a core population of 10,000 or more people) or a "census metropolitan area" (metropolitan area with total population of 100,000 or more). Contraventions of this Act may result in the residential property being sold by court order, and/or imposing a fine of up to $10,000 on offenders and those that counsel, induce, aid or abets in the contravention of this Act. On March 27, 2023, the Federal Government announced Regulations Amending the Prohibition on the Purchase of Residential Property by Non-Canadians , which came into force immediately. In particular and of note:
XV. ANNUAL PROPERTY COSTS
Property owners in Ontario can expect to incur the following annual costs: 1. Realty taxes – Each property's value is assessed for municipal tax purposes under the Assessment Act and the local municipality determines the tax rates to be paid based on the assessed value. Realty taxes can be comprised of local and regional amounts, school amounts, and special assessments. 2. Insurance - Not mandatory but is typically obtained to cover property damage and liability. If the property has a mortgage, the lender will require insurance as an ongoing condition of the loan. 3. Strata fees if a condominium; and 4. Operating expenses, such as utilities, maintenance and repairs. XVI. PROHIBITION ON THE PURCHASE OF RESIDENTIAL PROPERTY BY NON- CANADIANS ACT
Vacant land can be purchased by non-Canadians and used for any purpose including residential development. Residential property can be purchased by non-Canadians for development purposes.
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Introduced in the 2022 federal budget, the Prohibition on the Purchase of Residential Property by Non-
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ILN Real Estate Group – Buying and Selling Real Estate Series
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