Foreign Buyer Ban (Federal Act)

The Prohibition on the Purchase of Residential Property by Non-Canadians Act is federal legislation that restricts most non-citizens and non-permanent residents from purchasing residential property anywhere in Canada, including British Columbia. The ban is currently extended through January 1, 2027, and the federal government has indicated it is reviewing the legislation's future beyond that date. BC licensees operating under the Real Estate Services Act and supervised by the British Columbia Financial Services Authority (BCFSA) must be aware of this federal restriction when assisting buyers. Always confirm the current status of the Act before relying on any information about it.

The Federal Foreign Buyer Ban is a prohibition on the purchase itself — a qualifying non-Canadian generally cannot complete the purchase of restricted residential property at all, regardless of price. BC's Additional Property Transfer Tax (sometimes called the foreign buyer tax) is a separate provincial measure under the BC Property Transfer Tax Act that imposes an additional tax on transfers of residential property to foreign nationals and foreign corporations in specified areas of BC. The two measures operate independently, and a purchaser may face both the federal prohibition and provincial tax obligations simultaneously. Licensees regulated by BCFSA under RESA should ensure clients understand both layers of regulation.

The Act applies to residential property located within a census metropolitan area (CMA) or a census agglomeration (CA) as defined by Statistics Canada. Properties situated outside those designated areas are generally not subject to the ban, which can be relevant for rural or remote parts of British Columbia. Because the precise boundaries of CMAs and CAs are set federally and are subject to change, BC licensees should consult current federal government or Canada Mortgage and Housing Corporation (CMHC) guidance to confirm whether a specific property falls within scope.

The Act provides narrow exemptions, including for protected persons (refugees) recognized under the Immigration and Refugee Protection Act, certain temporary residents who meet specific conditions set out in federal regulations (such as international students and temporary foreign workers meeting prescribed criteria), and purchases made under certain court orders or in the context of divorce or separation. Spouses or common-law partners who are Canadian citizens or permanent residents purchasing jointly with a non-Canadian may also be affected differently depending on the structure of the transaction. Because exemption conditions are detailed and subject to federal regulatory amendment, parties should obtain current guidance directly from federal sources or qualified legal counsel.

Under the Prohibition on the Purchase of Residential Property by Non-Canadians Act, a person who contravenes the Act, as well as anyone who counsels or assists in a contravening purchase, may be guilty of an offence and liable to a fine upon conviction. A court may also order the sale of property purchased in contravention of the Act. BC licensees regulated under the Real Estate Services Act and BCFSA rules must be cautious not to facilitate transactions that would contravene the federal prohibition, as doing so could also trigger professional conduct consequences.

BC licensees are regulated by the British Columbia Financial Services Authority (BCFSA) under the Real Estate Services Act (RESA) and its Rules, which require them to act honestly, with competence, and in compliance with all applicable laws. Assisting a buyer who is not eligible to purchase under the federal Act could expose a licensee to liability under the Act itself and potential professional conduct proceedings under RESA. Licensees should conduct appropriate due diligence to understand a buyer's eligibility before proceeding and should document their inquiries and disclosures as part of their professional obligations.

Yes, residential strata lots — governed under BC's Strata Property Act (SBC 1998, c. 43) — are considered residential property and can fall within the scope of the federal ban if located within a census metropolitan area or census agglomeration. A non-Canadian who is otherwise prohibited under the Act cannot purchase a residential strata lot any more than a freehold residential property. Licensees assisting with strata transactions should verify a buyer's eligibility under the federal Act in addition to addressing strata-specific disclosure requirements under the Strata Property Act.

If agricultural land in the ALR contains a residential dwelling and falls within a census metropolitan area or census agglomeration, it could be subject to the federal ban to the extent it constitutes residential property as defined in the Act. However, bare agricultural land or land used primarily for farming that does not meet the Act's definition of residential property may not be captured. Questions about specific ALR parcels should be directed to legal counsel and the Agricultural Land Commission, which administers the Agricultural Land Reserve under the Agricultural Land Commission Act (SBC 2002, c. 36).

When BC licensees collect personal information from clients — such as citizenship or immigration status — to determine eligibility under the federal ban, they must comply with BC's Personal Information Protection Act (PIPA), which governs how personal information is collected, used, and disclosed. Licensees may only collect the information reasonably necessary for identifying a client's eligibility and must handle it with appropriate security and transparency. Clients should be informed of the purpose for which their personal information is being collected, consistent with PIPA requirements.

As of 2026, the Prohibition on the Purchase of Residential Property by Non-Canadians Act is extended through January 1, 2027, but the federal government has publicly indicated it is reviewing the legislation's future beyond that date, meaning the ban could be amended, extended, or repealed. Because the status of the Act may change, BC licensees regulated under the Real Estate Services Act and BCFSA standards should confirm the current state of the legislation before advising on or completing any transaction affected by it. Neither the BCFSA nor BC provincial legislation controls the federal Act, so authoritative updates must be obtained from federal government sources.