Can a Foreign Buyer Purchase a Condo in Toronto Using Their Canadian Citizen Child?

Question from jj, Can a Foreign Buyer Purchase a Condo in Toronto Using Their Canadian Citizen Child?

Answer from AI:

In general, there are no restrictions on foreigners buying property in Canada. However, using a minor child to purchase property involves additional legal considerations.

Foreign Ownership in Canada

Foreigners can own property in Canada without any residency or citizenship requirements. However, some provinces have regulations regarding the amount of real estate a foreigner can own. In Ontario, where Toronto is located, there are no such restrictions.

Ownership by Minors

The more complex issue is the age of the child. In Ontario, under the Age of Majority and Accountability Act, the age of majority is 18. This means that a person under 18 is considered a minor and generally cannot enter into contracts, including buying property. However, property can be held in trust for a minor.

Trusts

A trust is a legal arrangement where one person (the trustee) holds property for the benefit of another person (the beneficiary). In this case, the parents could potentially set up a trust, with the child as the beneficiary and themselves as the trustees. The trust would own the property until the child reaches the age of majority.

However, setting up a trust can be complex and requires careful planning. It’s important to consult with a legal professional to understand the implications, including potential tax consequences.

Legal Advice

This is a complex situation that involves both property and trust law. It’s strongly recommended that you consult with a legal professional who can provide advice based on your specific circumstances.

Resources

For more information, you can refer to the following resources:

• The Age of Majority and Accountability Act provides information on the age of majority in Ontario.
• The Canada Revenue Agency provides information on the tax implications of trusts.

Remember, while this information provides a general overview, it’s not legal advice. Always consult with a legal professional for advice tailored to your situation.