contract-law real-estate british-columbia
(BC, Canada) Is a contract still enforceable with relation to a new foreign buyer&#39;s tax?
<p>I live near Toronto, Canada, and the foreign buyer's 15% tax passed last week in British Columbia (only applicable to Vancouver) is generating very heated debate. Its effectiveness aside, I believe that there are some elements of the new tax law that are not compatible with contract law, correct me if anyone can link to the relevant acts.</p>

<p>See <a href="http://www.cbc.ca/news/canada/british-columbia/foreign-buyer-real-estate-tax-collapse-1.3705368" rel="nofollow">here</a>, a CBC report describes an American who signed a contract to buy property in Vancouver before the law even existed, and now, he is stuck between a rock and a hard place: he can either abandon the deal and lose his deposit (which, at a minimum, is $25, 000--could be a lot more). But, if he buys, he will be subject to the tax (even though the contract was signed before the law took effect, it's just that the house was not closed before August 2). So, can he appeal this tax to the Court of Appeals, arguing that the contract was signed before the law took effect, and therefore the government had changed his side of the contract by imposing a previously non-existent tax?</p>

<p>The contract doesn't promise that the government wouldn't create a new tax.</p>

<p>The buyer and seller could have agreed to make the contract conditional on  tax regulations not changing. But, if they didn't make this agreement conditional on unchanging tax regulations, they are stuck with the effects of the Government's decision.</p>

<p>This is like a noisy neighbour moving in, or the city planning a new subway adjacent to the property, etc.</p>
