Invest in Canada

Foreign Investment in Canadian Real Estate

by investor on 25/05/08 at 11:55 pm

Primary responsibility for property law rests with the provinces. In all provinces except Québec, property law has developed through the English common law process. In Québec, property law is governed by the Civil Code of Québec, a Napoleonic Code derivative.

There is no constitutional protection for property rights in Canada. Consequently, property can be expropriated by government and quasi-governmental authorities; but, appropriate compensation must be paid.

Interests in land are generally held directly in fee simple or by leases as leasehold interests. Condominium or strata title ownership is also common throughout Canada. All provinces maintain a system of public land titles registration where ownership can be verified and through which interests in land are registered.

There are generally no restrictions on foreign ownership of Canadian land and no consents or government approvals are required to buy or sell land; however, many provinces require that foreign corporations be extra-provincially registered in the province before being entitled to own real estate in that province.

Most real estate transactions involve the services of a real estate agent. The agent usually represents the vendor/ landlord and is paid a commission by the vendor/landlord. Although most agents attempt to charge a standard fee or tariff for their services, these fees can be negotiated in certain circumstances.