Re:Canada bans most foreigners from buying homes
by m00x on Monday January 02, 2023 @07:14PM
(#34225659)
> 1. I sincerely doubt that the courts will let the law remain unenforced. Let's agree to disagree on that.
Then you don't know Canadian enforcement very well. I've been a Canadian for 35 years and I can say with conviction that most laws around real estate or commercial corruption aren't enforced.
Almost all my Chinese friends who aren't already wealthy let overseas "investors" use their accounts to transfer 50k/y. They open an account, and allow a lawyer/banker to do transfers in their behalf. Then the lawyer transfers 50k in it, transfers it to their client, leaves 2-3k. There have been dozens of lawyers and accountants that were caught aiding in this scheme, but the fine is around 70k, so it's just the cost of doing business.
Re:Canada bans most foreigners from buying homes
by Scoundreller on Monday January 02, 2023 @07:34PM
(#34225872)
Depends on the province, but in Ontario, only a lawyer can convey property in the land registry. It might be difficult for a foreigner to buy in that case.
Re:Canada bans most foreigners from buying homes
by revolvingocelot on Monday January 02, 2023 @07:12PM
(#34225638)
"Unenforced"? No, no -- the $10,000 fine will be collected. It's just the forced sale that might not occur if the superior courts are busy (and they are!), and if it does occur, the foreign nearly-buyer will be out $10,000. There's no need to encourage baseless Reddit speculation, just read the law itself -- I've linked it, you've linked it -- and reason about how the government will act based on the last 30 years of government (in)action.
Re:Canada bans most foreigners from buying homes
by smnrchrds on Monday January 02, 2023 @07:25PM
(#34225772)
Again, I don't agree with your cynicism. But even if you are cynical, consider this: if the government appears soft on real estate prices, they will lose the next election (which may be as early as this spring) to Pierre Poilievre.
Re:Canada bans most foreigners from buying homes
by revolvingocelot on Monday January 02, 2023 @07:46PM
(#34225994)
...that's a really good point, actually. I am in fact so cynical that in light of this point, I think I'm going to go around loudly praising this bold new law from the wise Liberals.
1. I sincerely doubt that the courts will let the law remain unenforced. Let's agree to disagree on that.
2. The reddit post goes into details (which I agree with) about how this law changes the incentives, so real estate agents, sellers, lawyers, etc. are unlikely to want to aid foreign nationals in circumventing it.
3. Selling is a punishment. Everyone gets fined, the house is sold, and the seller cannot get any of the upside from the sale. At best, they break even (minus the fine).
> Marginal note:Paragraph (1)(c)
> (2) Regulations made under paragraph (1)(c) must provide that no non-Canadian receive from the proceeds that results from a sale of a residential property ordered under section 7 more than the purchase price they paid for the residential property.
https://laws-lois.justice.gc.ca/eng/acts/P-25.2/page-1.html