2023 REAL EsTATE Regulation Changes
NEW: As of January 2023 there are several changes to the real estate industry both provincially and federally, that I wanted to highlight for you. There were so many that I thought it would be helpful to you to see them listed in one place and I have attached the links below. If you would like to discuss these changes and how they could affect you and your real estate goals, please contact me.
Home Buyer Rescission Period [HBRP]
"The HBRP provides buyers an opportunity to rescind their contract to purchase certain residential properties up to three business days after an offer is accepted with a financial penalty. This rescission period applies to residential real property transactions regardless of whether a real estate licensee is involved in the transaction and cannot be waived by the buyer or the seller."
This is the government's 'cooling off period' legislation designed to give buyers who offer without conditions an 'out' if they make an offer that they regret afterwards. However, there really aren't any bidding wars now where buyers would feel pressured to offer that way and even if there were multiple offers, the buyers' offers contain conditions. If a buyer has an offer with conditions and doesn't want to go ahead with the purchase based on one of those conditions - financing etc. then they will collapse the deal based on that. If a buyer uses the rescission period as an out on their contract to purchase, there's a 0.25% fee on the purchase price (payable to the seller). There's no fee if a deal collapses based on a buyer's condition on their offer.
Bill 44: Strata Age & Rental Restriction Bylaw Changes
"On November 24, 2022, the provincial government passed Bill 44 in the provincial legislature, which changed restrictions around rentals and ages of owners and tenants under the new Building and Strata Statutes Amendment Act."
Foreign Buyer Ban
"The Prohibition on the Purchase of Residential Property by Non-Canadians Act prevents non-Canadians from buying residential property in Canada for 2 years starting on January 1, 2023."
NEW: Cowichan Valley Areas Speculation and Vacancy Tax
"The tax will now be put to use in the municipalities of North Cowichan, Duncan, Ladysmith, Lake Cowichan, Lions Bay and Squamish to help ensure empty housing stock is available for the people who work and live there."
Speculation and Vacancy Tax FAQs
"The speculation and vacancy tax is an annual tax paid by some owners of residential properties in designated taxable regions of B.C.
The tax is designed to discourage housing speculation and people from leaving homes vacant in B.C.’s major urban centres. More than 99% of British Columbians are expected to be exempt from the tax."
Residential Property Flipping Rule
“Individuals who purchase a residential property and sell it within 12 months of their purchase may be subject to the Residential Anti-Flipping Rule. Under the new rules, any profit from the sale of residential real estate (including rental property) within a year would be taxed as business income and ineligible for either the 50 per cent capital gains rate or the principal residence exemption.”
If you have any questions about how these regulations will affect you, feel free to contact me to discuss it. I’m happy to help.
- Meredith
