Preparing for January 1: Federal and provincial changes affecting real estate coming in 2023
At a glance (2 minute read):
- The federal ban on foreign buyers and the provincial Home Buyer Rescission Period (HBRP) both go into effect in 2023.
- Resources are available to help you prepare for these changes, including our free December 1 online event about the HBRP.
New federal and provincial legislation goes into effect on January 1 that’ll affect how REALTORS® conduct their business, and who they can conduct business with.
Here’s a quick summary of what you need to know.
The Home Buyer Rescission Period (aka the cooling off period)
The BC Real Estate Association’s (BCREA’s) Standard Forms is updating and revising several existing forms to prepare for the January 1 implementation of the Home Buyer Recission Period (HBRP) in BC. There’ll also be one new form, the Notice of Rescission – Residential Real Property.
The new form, and all the revised ones, will be available on BCREA Standard Forms on January 1. They’ll be accompanied by usage guides and other practical information.
We recently hosted an event with real estate lawyer Michael Drouillard that took an extensive look at what Realtors can expect with this new legislation. Watch it below:
On December 1, we hosted a free online session featuring Carmen deFoy of the BC Financial Services Authority and Jim McCaughan of BCREA. They discussed the changes coming into effect for the HBRP including:
- What the HBRP requirements are.
- How it'll impact real estate licensees, buyers and sellers.
- What you need to know about new disclosure requirements and changes to forms.
- Where you can find regulatory guidance and forms, answers to common questions, and resources to share with clients.
Watch the session below.
Federal ban on foreign buyers
The federal government will implement a ban on the purchase of Canadian real estate by foreign nationals on January 1, 2023. The government’s stated goal with this policy is to reduce pressure on Canadian real estate prices.
While the government hasn’t provided much clarification on this policy, what we understand so far is that the ban will:
- apply to non-Canadians and not Canadian citizens or permanent residents;
- apply to the direct and/or indirect purchase of residential listings including detached homes and strata properties by individuals, corporations, trusts, or other legal entities;
- affect agreements signed on January 1, 2023 or after. Agreements in place as of December 31, 2022 shouldn’t be affected; and
- will be in effect for two years, expiring on December 31, 2024.
The Canadian Real Estate Association recently shared their recommendations on the new legislation with the federal government. Stay tuned for more information on this issue.