The province of British Columbia introduced the "Cooling Off Period" or also known as the Home Buyer Rescission Period, will begin January 3rd, 2023.
As a home buyer, here is what you need to know.
- The period will be effective January 3, 2023.
- Buyers will have 3 business days to back out of a residential purchase after signing the contract.
- This applies to all contracts, regardless of subjects clauses.
- The Home Buyer Recission Period (HBRP) is mandatory, built into the contract and can’t be waived.
- Buyers who back out of a contract within this 3 day period will have to pay a rescission fee of 0.25% of the purchase price.
- The rescission fee is paid directly to the seller.
Protection period will be available for the sale of residential properties:
- detached homes;
- semi-detached homes;
- apartments in a duplex, triplex or other multi-unit dwelling;
- residential strata lots;
- manufactured homes that are affixed to land; and
- cooperative interests that include a right of use or occupation of a dwelling.
Exemptions from the Home Buyer Recission Period:
- Pre-sales (which is governed under the Real Estate Development Marketing Act)
- Residential real estate located on leased land.
- Leasehold interest in residential real estate.
- Properties sold at auctions.
- Properties sold under a court order or supervision of a court.
The Notice of Rescission
Homebuyers must serve rescission notice to the seller through registered mail, fax, email with read receipt, or personal service. For the notice to be valid, it must contain the address, PID or legal description of the property, the names and signature of the buyer(s), name of the seller(s), and the date of notice. The notice must be served within the 3 business day period and a 0.25% fee is payable to the seller.
If you have any questions, please reach out to your real estate professional for more details.