Real Estate Ownership in Canada

Real Estate Ownership in Canada

Real Estate Ownership in Canada

Property rights fall within the authority of Canada's provinces, and the own law governing property ownership applies to each province or territory.

An interest in land might be either freehold or leasehold. Canada's highest class of property is a single fee interest, a kind of unlimited interest, and gives total ownership. A leasing interest is a claim less than a freehold and is characterized in a limited or terminable period by ownership rights and use of the land exclusively.

There is no explicit foreign ownership limitation of Canadian real estate; however certain jurisdictions have introduced additional property transfer taxes to non-residents of Canada to buy Canadian residential real estate.

In addition, a portion of the brutal purchase price (typically 25% but can increase to 50% if the property produces rental income) is required from the Canadian Revenue Agency (CRA) and remitted to the CRA unless the non-resident provider has received a 'clearance certificate from the CRA to verify that a non-resident vendor has the income to buy the property.

Three forms of property ownership systems are available in Canada for Canadians. A method of "registers" is based on the public recording of property deeds and other instruments. Property ownership is determined based on "first-to-file" priority. The register system is typically used by Newfoundland and Labrador, and Prince Edward Island. A method for the "land title" (sometimes called the system of "Torrens") is founded on the registration of government titles on property. Property ownership is established based on a "guarantee" by the government. The title generally applies to Alberta, British Columbia, Manitoba, Saskatchewan, and New Brunswick, NS, and Ontario.

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