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B.C. COURT ORDERS WOMAN TO FORFEIT $150K DEPOSIT AFTER SHE BACKED OUT OF HOME
PURCHASE DUE TO FOREIGN BUYERS TAX


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 1. Vancouver
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    Based on facts, either observed and verified firsthand by the reporter, or
    reported and verified from knowledgeable sources.


B.C. COURT ORDERS WOMAN TO FORFEIT $150K DEPOSIT AFTER SHE BACKED OUT OF HOME
PURCHASE DUE TO FOREIGN BUYERS TAX


 * Ian Holliday
 * CTVNewsVancouver.ca Reporter
 * Follow | Contact

Updated Dec. 7, 2022 12:05 a.m. GMT
Published Dec. 6, 2022 11:15 p.m. GMT
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The would-be buyer of a nearly $3 million home on Vancouver's west side, who
backed out of the purchase after learning B.C.'s foreign buyers tax would apply
to her, has been ordered to forfeit her deposit.

Hongxia Zhang agreed to purchase the home on West 4th Avenue in Vancouver's West
Point Grey neighbourhood in March 2021, according to a B.C. Supreme Court
decision issued Friday and posted online Monday. 

The completion date for the purchase was scheduled for April 26, 2021, but a few
days before then, Zhang's lawyer asked to delay the sale until the buyer "became
a permanent resident of Canada," wrote Justice Carla L. Forth in her summary of
the facts.

The seller declined to extend the completion date, and asked – through her
lawyer – to recover the $150,000 deposit Zhang had paid in trust to her realtor,
YVR International Realty.


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Lawyers for the seller, Anne Nijola Ambroziewicz, made two more demands for the
deposit before filing a civil lawsuit to recover it on Oct. 13, 2021.

In her defence, Zhang argued that she had been misled by her realtor and
believed that the foreign buyers tax would not apply to her if she had been
granted a Confirmation of Permanent Residence by Immigration, Refugees and
Citizenship Canada.

"She claims she did not learn until after she paid the deposit, but before the
completion date, that she needed to be in Canada before the completion date to
avoid the foreign buyer tax," Forth wrote in her decision.

"Ms. Zhang explained that since she was in Hong Kong, she had to apply for a
travel exemption, which was refused by Immigration, Refugees and Citizenship
Canada. As a result, she was not able to be in Canada at the time of the
completion date."

The would-be buyer argued that this constituted "force majeure," a legal term
referring to "an extraordinary event or circumstance beyond the control of the
parties." Essentially, she argued that the fact that she was not allowed to come
to Canada made it impossible for her to complete the contract without an
extension.

Forth rejected this argument, however, noting that there was no force majeure
clause in the contract. The judge also noted that Zhang's alternative argument –
that the contract was "frustrated" by her inability to move to Canada – did not
hold up.

For the legal principle of frustration to come into play, Forth wrote, "there
must be a change in the significance of the obligation that the thing undertaken
would, if performed, be a different thing from that contracted for."

"The application of the foreign buyer tax to the transaction did not alter the
'nature or purpose' of Ms. Zhang’s contractual obligation," the judge wrote.
"While it did make the contract more expensive for Ms. Zhang, it did not render
the contract 'radically different' from what it would have been had the tax not
applied."

Forth ordered Zhang to forfeit her deposit and ordered YVR International Realty
to pay it, and the interest it has accrued while being held in trust, to
Ambroziewicz. The judge also ordered Zhang to pay the plaintiff's legal costs.

The loss of the $150,000 deposit still amounts to substantially less than Zhang
would have owed under the foreign buyers tax had she completed her purchase.
Homes purchased by foreigners in Metro Vancouver are subject to an additional 20
per cent property transfer tax, which would have amounted to $590,000 in Zhang's
case. 




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   priced Vancouver real estate
 * Newcomers to B.C. sue over Foreign Buyers' Tax after purchasing Kelowna home
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   are managing their snow clearing.
   
   


 * GREENHOUSE ON NIPISSING FIRST NATION WILL HELP ADDRESS LETTUCE SHORTAGE
   
   Nipissing First Nation is eagerly awaiting the launch of a new greenhouse
   project. The Mnogin Greenhouse, located on Jocko Point Road, will be open
   next year and will grow lettuce and other leafy greens.
   
   9 hr ago


KITCHENER


 * WATERLOO REGIONAL COUNCIL REVERSES DECISION ON LIFETIME BENEFITS
   
   Waterloo regional council has scrapped a plan that would have given
   councillors health benefits for life.
   
   
   
   9 hr ago


 * TWO YOUTHS CHARGED AFTER WEAPONS INCIDENT AT KITCHENER HIGH SCHOOL
   
   Waterloo regional police have charged two youths following reports of a
   weapons incident at Forest Heights Collegiate Institute on Tuesday.
   
   7 hr ago


 * POLICE SEIZE NEARLY TWO DOZEN GUNS FROM CAMBRIDGE HOME
   
   A 34-year-old man is facing numerous charges after police seized nearly two
   dozen guns from a Cambridge home.
   
   11 hr ago

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