As published in the Tremblant Express, March 2023 edition
On June 23, 2022, the Canadian government passed an Act of Prohibition on the Purchase of Residential Property by Non-Canadians (the Act) The Act came into effect on January 1, 2023, and forbids the purchase of residential property in Canada by non-Canadians.
In December 2022, a regulation for implementation clarified which “residential properties” are targeted by the Act. In fact, one can ascertain that the residential properties excluded from implementation of the Act are those in a region of Canada which is not part of a census agglomeration (CA) or of a census metropolitan area (CMA).
In brief, if a residential property is located in a CA or a CMA that appears on a map, in conformity with the requirements of the Act – which includes certain exceptions to take into account on a case-by-case basis – any non-Canadian, directly or indirectly, is forbidden to purchase said property during a period of two years beginning January 1, 2023.
Thus, as Mont-Tremblant is not included in a CA or an CMA, the Act does not forbid non- Canadians to purchase residential properties on its territory. The CA (or CMA) closest to Mont-Tremblant is Sainte-Agathe-des-Monts.
Overall, this is good news for Mont- Tremblant, as the 1990s vision for development of the region included, for the resort real estate, a pool of foreign potential purchasers.
It’s worth remembering that Mont-Tremblant has never experienced a percentage of non-Canadian owners as low as it is currently (2022 = 3.2 % vis-à-vis 2007 = 7.6 % at its height).
What’s even better, the fact that Canada’s big cities will not be accessible for property purchase by these investors could create a funnel effect towards our area.
As for the possible effect of the increase in value of residential real estate available for local workers, we should remember that non-Canadian purchasers buy primarily resort real estate in the new projects bordering the golf courses or the mountain. They buy very little in residential neighbourhoods.
Co-written by
Jean-Philippe C. Boileau
Notary and partners at VSB Title Attorneys
