The following changes may effect your BC real estate transactions starting 2023.
1. BC government introduces “cooling off” period for home sales
Effective: January
Purpose: To protect home buyers after an accepted offer
Who is Impacted: Home Buyers and Sellers
What you need to know: This will allow homebuyers to cancel, or rescind, an accepted offer to purchase real estate within three business days, even if the offer does not include conditions. It cannot be waived by either the seller, buyer, or their representatives.
Cost of cancelling: A fee of 0.25% of the purchase price must be paid by the buyer to the seller.
2. Residential Property Flipping Rule
Effective: January 2023
Purpose: To reduce speculative demand in the market place and help to cool excessive price growth.
Who is Impacted: Anyone selling property they have held for less than 12 months.
What you to know: Individuals who purchase residential property and sell it within 12 months of their purchase may be subject to the Residential Anti-Flipping Rule. Any profit from the sale of residential real estate (including rental property) within year would be taxed as 100% business income and ineligible for either the 50% capital gains rate or the principal residence exemption.
3. Canada’s Foreign Buyer Ban
Effective: For 2 years, starting January 1, 2023
Purpose: Το ensure housing market remains available to Canadians
Who is Impacted: Non- on-Canadian home buyers
What you need to know: Το qualify for purchase mortgage refinance, individual must be a Canadian Citizen, Permanent Res dent, Indian (as defined under the Indian Act), or other person as defined in the Prohibition the Purchase of Residential Property by the Non- Canadians Act.
Fine: Non-residents who buy property in breach of the the ban, and anyone who knowingly helps them do so, can e convicted and fined up to $10,000.
These government regulations take effect January 1, 2023, and note there are exceptions to some of these new rules.
Questions? Get in touch to see how this might effect your specific situation and mortgage application.