In situations where the seller of the property is a non-resident of Canada, the buyer’s notary public or lawyer must hold back the required percentage of the purchase price, unless a satisfactory clearance certificate is obtained from the Canada Revenue Agency.
The onus is on the seller to satisfy the buyer’s inquiry that the seller is a resident of Canada.
The general rule is:
The residency declaration that you signed will be relied upon. You, as a seller, must understand the significance of the residency question. When in doubt, you must seek advice from your accountant or directly from CRA. The onus is on you to satisfy the purchaser’s inquiry on this point. If you are a non-resident seller, you should apply for clearance as soon as possible, to reduce the potential holdback period.