If you are planning on buying or selling residential real estate in 2023, you need to know that as of January 3, 2023 there will be new rules which make The Home Buyer Rescission Period (“HBRP”) mandatory for residential real estate transactions in BC. The HBRP has also been called the Buyer Cooling Off Period or the Homebuyer Protection Period.
What is the HBRP?
The HBRP will allow homebuyers to rescind a contract to purchase residential real estate within the set period, even if the contract does not include conditions. It will begin the next business day after the final acceptance of an offer. The rescission period will be in effect for three business days and cannot be waived by either the seller, buyer, or their representatives. During this period, homebuyers can still legally withdraw from the purchase without justification at the cost of a rescission fee equal to 0.25 per cent of the purchase price.
The HBRP and any subject conditions in the contract of sale both start counting down at the same time and run concurrently if subject conditions have been included in the contract of sale.
Learn more here, including what types of properties the HBRP applies to and where there are exemptions.
Note – if you are planning a move in 2023, your REALTOR® is required to outline the HBRP regulations at the onset of your agency relationship, and again when an offer is prepared or presented.
Please reach out to one of our sales representatives if you have additional questions. They would be happy to clarify the new rules.
Information courtesy of BCFSA and BCREA