Budget constraints and office realignment by the Canadian Revenue Agency have had significant impact on the ability of non-resident sellers to receive their Cert-116 exemption statement in a timely manner. The once efficient certificate clearance which typically took a couple of weeks to complete may now take up to six months causing clients to wait a many months to receive the balance of their sales proceeds. Our Canadian subsidiary is not treated as a non-residence seller of real estate and therefore, our clients are not subject to customary holdback requirements that otherwise apply. Our final reconciliation and client billing process in unaffected, and clients have no lingering receivables. For U.S. bound transferees, we structure the transaction the same as a U.S. domestic relocations, to preserve the tax protected benefits of customary home sale programs.

Important Update: The Canadian government has legislated significant restrictions on the ability of  non-Canadians to purchase real estate within their borders.  Effective January 1, 2023 and continuing through December 31, 2024 the Prohibition of Residential Real Estate by Non-Canadians Act prevents the vast majority of U.S. based relocation management companies, as well as their Canadian entities managed by U.S. ownership, from structuring a tax protected home sale program for State bound home owners. As of January 2024, there is no indication that this Act will be rescinded any sooner than its expected expration date of December 31, 2024.