b'GOVERNMENT RELATIONSWe want to limit speculation in real estatetheyve ever been, so we certainly need markets, Bourque acknowledged, andpeople, and we need the right people,"we dont want condos to be considered asshe said.safety deposit boxes. But with this legisla- With no grandfathering provision in theTHE CERC tion, the risk is first and foremost that it can lead to a permanent, negative changeact, it also hamstrings foreign nationalsRESPONSEin the value of the Canadian brand as awho already own homes in Canada and welcoming, progressive, diverse, tolerantwish to sell but would be prohibited if society that wants to attract people fromthey dont meet exemption requirements.In early November of 2022, CERC all around the world.There have also been discussions aroundsubmitted the following request to a scenario where someone willinglythe federal government concerning Bourque stressed that the act changes thecontravenes, pointed out Stein, andthe controversial Prohibition on the Citizenship Act, undoing years of deliberateplans to pay the $10,000 penalty for doingPurchase of Residential Property by policy and investment made by successiveso but could also be liable for summaryNon-Canadians Act: governments. As well, he noted, becauseconviction. This would result in a criminal it applies to our American and Mexicanrecord that could actually have implica- 1. We encourage the government trade partners, it could undermine ourtions for people who are typically mobile,to continue with the intent to own aspirations to own property inglobal, and looking to have access to provide an exemption from the Arizona or Florida or Cabo San Lucas. other countries. act for foreign nationals that have Bourque listed concerns that CREAPaul Kochberg of the Law Office ofbone fide job offers andhas with the act, including its impactFleischer and Kochberg Professionalwork permits. on immigration and relocation, but alsoCorporation didnt mince words when2. Provide an exemption from the broader ones like criminal penalties anddetailing to the panel the acts implica-fines, ambiguity, and unrealistic and costlytions on the relocation industry, describingact for all real estate transactions due diligence obligations. The legisla- it as very severe and quite negative.related to employer sponsored tion promises to increase affordability byCommon practice has been that theemployee relocations. preventing foreign ownership, but thereRMC would buy the home of the trans- 3. Provide an open and transparent is evidence in countries like New Zealandferred employee, and then re-sell it to a that it doesnt work, so the net result isthird-party buyer, allowing the employeeprocess for business to review and that Canadians will be even more disillu- to move without having to worry aboutcomment on the regulations.sioned about what governments are doingselling their previous home. The practiceOur discussions with the govern-to help with housing affordability," healso resulted in considerable government- ment continue, says CERC explained. "In the meantime, our brandapproved tax savings. The new legislation, will be severely damaged. As long as wehowever, dictates that the RMC can nopresident Stephen Cryne. We are not addressing supply, and bringing itlonger buy the property unless the RMC iscontinue to provide suggestions that into balance with demand, Canadians willdeemed to be Canadian within the defin- would exempt temporary foreign continue to have this sentiment, and weition in the act.workers from the ban and exclude shouldnt be giving them bad policy This negatively impacts many inter- real estate transactions related to in response. national RMCs who were administeringemployee relocations.COMPLICATED CONSEQUENCES Canadian transactions for corporations Key employers are constantly looking todoing business in Canada, explained attract global talent with needed expertiseKochberg, The result will be signifi-cant increases in costs for corporationsto benefits offered, but also considerations into Canada. Fellow panelist and globalrelocating employees from one location to business immigration partner at EYanother. The legislation will also requireabout what they might do for an employee Law Batia Stein noted that many foreignadditional work by everyone involved inregarding tax impact.nationals start in Canada as students, andthe corporate relocation. For instance,Lynn Shotwell, president and CEO then stay and ultimately become perma- real estate brokers and lawyers will haveof Washington, DC-based Worldwide nent residents. Many others, she said,to satisfy themselves that a buyer of resi- ERC, offered an outside perspective on have a skillset thats in high demand, ordential properties qualifies to purchasethe changes. Canada is not the first are very senior-level executives who areresidential property in Canada. country to implement restrictions like this. attracted to Canada by companies who[However, there is] a longstanding history need them here to fill a certain demand,Were recommending that clients engagebetween our two nations, and expectations [and they] contribute to the economy.with key internal stakeholders like busi-Many of them will look to purchase prop- ness unit partners who might be initiatinghave been built up over the years that if a erty to help themselves and their familiesa relocation, said panelist Ann Staf- foreign worker moves to Canada, theyll settle and acclimatize to Canada, and toford, regional vice president Canadabe able to buy a home and have the kind ultimately, hopefully, make Canada theirfor Weichert Workforce Mobility, andof lifestyle that they might have in the permanent home. reminding them to stop before they offerU.S. Were hearing from our members a relocation, to be aware of the act. Ifthat this will probably discourage them Stein noted that immigrants account forthey were going to offer a home purchasefrom taking assignments in Canada. Weve 30 per cent of physicians in Canada, 33relocation, to look at other optionsalways applauded what Canada has done per cent of business owners with paid staff,that they could provide perhaps at theto welcome foreign talent, and I hope that and 41 per cent of engineers. Immigra- recruiting level, or HR business level,this is just an unexpected bump intion targets are currently the highestwhich could include not only adjustmentsthe road.Spring 2023PERSPECTIVES21'