2023 Real Estate Changes

Three Day Rescission Period

• Effective January 1, 2023
• Created in response to subject free multiple offer situations
• Buyers will have three days to back out of an accepted offer
• Applies to all contracts regardless of subjects
• Mandatory and can’t be waived
• Buyers who back out of a contract within this three-day period will have to pay a rescission fee of 0.25%. For example, if the purchaser exercises the right of rescission on a $1-million home, they’d be required to pay the seller $2,500

Foreign Buyer Ban

• Federal government is implementing a two year moratorium on foreign buyers from purchasing real estate in Canada
• Some exemptions include:
• Buyers who spouse is Canadian or a permanent resident
• Temporary residents who work or study in Canada and plan to stay
• And other exemptions

Multigenerational Home Renovation Tax Credit

• On January 1, 2023, the Multigenerational Home Renovation Tax Credit will come into force. 
• This tax credit will cover eligible homeowners up to 15 per cent (to a maximum of $7,500) for creating a secondary unit in their home to accommodate a senior or adult with a disability. 

Residential Property Flipping Rule

• The Residential Property Flipping Rule will come into force January 1, 2023. 
• Changes will mean that individuals who sell their residence within 12 months of acquiring it will be taxed as business income and be ineligible for either the 50 per cent capital gains rate or the principal residence exemption. 
• There are exemptions for “life events” such as a divorce or death.