On January 3, 2023 the BC Government implemented the home buyer rescission period (HBRP). The intention was to provide buyers a “cooling off period” so they can reconsider their purchase. This legislation provides home buyers up to 3 business days to rescind their offer after acceptance. The HBRP applies to detached and semi-detached homes, townhouses, apartments in duplex or multi-unit dwellings, residential strata lots (per Section 1-Strata Property Act), manufactured homes affixed to land, and cooperative interests in a property (per Section 1-Real Estate Development Marketing Act) that include a right-or-use of occupation of a dwelling.
Properties excluded from HBRP are residential properties on leased land, leasehold interests in residential properties, or those sold at auction or under court order or supervision.
The right to rescission cannot be waived and only buyers may rescind a contract of purchase and sale. The 3-day rescission period excludes weekends and holidays. Buyers rescinding their offer must notify the seller in writing before the rescission period expires. Please note there are specific requirements on what information this notice must contain and how it should be delivered. Buyers choosing this option will pay a rescission fee of 0.25% of the accepted offer price which can be deducted from the deposit. Real estate licensees are required to disclose to their clients the buyers right of rescission. When the right of rescission is exercised the accepted offer is rescinded and the seller may then sell their property to any buyer.
These are the highlights of HBPR, but to get all of the information please go to https://www.bcfsa.ca/public-resources/real-estate/home-buyer-rescission-period, and/or consult your real estate agent or lawyer.