Changes to Real Estate

New Legislation affecting the Strata Property Act in BC – Effective November 24th, 2022

 

As the following changes are Provincial Legislation this would not require the Bylaws to be revised. This is good to keep in mind if you are purchasing in a strata complex. The Provincial Legislation will overwrite any Strata Bylaw.

 

Removing Rental Bylaws:

No strata corporation or section is allowed to have a residential rental restriction bylaw. All current or existing rental-restriction bylaws are considered invalid.

Strata Corporations are still permitted to have a short-term rental bylaw that bans or limits short-term rentals such as Air BnB and VRBO for example.

If you are currently living in a fully owner occupied complex you may find yourself in a different environment than what you expected or have come to value. The positive take-away from this rule could be if an owner has moved or is moving out of their unit but are not ready to sell and also don’t want their unit to be vacant, they will now be able to rent it out.

 

Removing Age Restrictions:

All Age Restriction Bylaws are now considered removed, with the exception of 55 plus age restricted complexes. To preserve Senior Living in BC, Strata Corporations are still permitted to have a minimum 55 plus age restriction.

Prior to this new legislation there were many strata complexes that were designated as “Adult only” or ages “19 or over”, these restrictions no longer apply.

This rule is intended to provide more housing opportunities for young families and protect couples who are expecting a baby from having to look at moving.

For more details on the changes to strata legislation:

Changes to Strata Legislation – Province of British Columbia (gov.bc.ca)

 

Canada Closes the Doors on Foreign Home Buyers for Two Years

The federal government has introduced legislation that bans the purchase of residential real estate by non-Canadians. The Prohibition on the Purchase of Residential Property by Non-Canadians Act (the “Act”) comes into force on January 1, 2023, and is stated to stay in force for two years 

The purpose of the legislation is to ensure that houses are used as homes for Canadians to live in—and not used as financial assets for foreign investors.  

Some exemptions may apply: 

* Temporary Resident which may include a Permanent Resident or a foreign national who is permitted to enter or remain in Canada as a student, worker, or temporary resident permit holder. 

*  An individual who is a non-Canadian and who purchases residential property in Canada with their spouse or common-law partner if the spouse or common law-partner is a Canadian citizen 

To read more on Buyer laws and see what else could potentially affect you, check out here

Sources:  

   Clark Wilson LLP  

   BCREA (British Columbia Real Estate Association)

   CANLII

 

Home Buyer Rescission Period (HBRP)

Affective Jan 3, 2023 BC is implementing the Home Buyer Rescinding Period (HBRP) originally known as the “cooling-off period.” 

This legislation will affect every Buyer and Seller who enter an accepted offer to purchase contract in BC.  

As of January 3rd, EVERY accepted offer on Residential property will include a NON-WAIVABLE clause that provides the Buyer 3 Full Business days to rescind their offer on a property. 

Here’s how it will work: 

  • The Rescission Period is for a length of 3 Full Business days. For Example: if you were to enter an accepted offer on a Monday at 1:00 pm the Buyer would have until Thursday at 11:59 pm to change their mind and formally “Rescind” their offer. The definition of a “Business Day” is a day other than Saturday, Sunday, or a holiday. 
  • No additional reason needs to be given. 
  • This Rescission Period runs concurrently alongside subjects included in the offer. For example: If the offer is accepted on Monday the 1st of the month and included subjects are due off on the 10th of the month, the rescinding period would expire on Thursday the 4th yet the subject due date is still the 10th. 
  • If the Buyer chooses to Rescind their offer within the 3 Business Days the penalty incurred by the Buyer is legislated at .25% of the accepted offer price with no cap amount. This percentage is set as per the legislation and is not able to be negotiated between the Buyer or Seller. 
  • The Buyer is contractually obligated to pay the .25% directly to the Seller “promptly”. 

 

Buyers will have the ability to offer on more than one property at a time, however, must be aware that they will be required to pay the Rescinding fee on all properties they choose to rescind.  

Resources: 

Government of British Columbia (Gov.bc.ca)