Cooling Off Period Coming to BC
A new homebuyer protection period will protect people in B.C. looking to buy a home from being pressured into high-risk sales.
The measure is the first of its kind in Canada. The mandatory three-day period will give homebuyers an opportunity to take important steps, such as securing financing or arranging home inspections, as they prepare to make one of their biggest financial decisions.
BC already has a seven-day cooling-off period on the purchase of presale condos, where a buyer can walk away without a penalty. This measure will extend protection to those buying resale homes. More than 70% of the real estate offers in BC are made without conditions, because of how competitive the market has become.
“Too many people have been faced with giving up an inspection in order to buy a home,” said Selina Robinson, Minister of Finance. “This is a major step toward providing homebuyers with the peace of mind they deserve while protecting the interests of people selling their homes – for today’s market and in the future.”
When Does the Homebuyer Protection Period Start?
The homebuyer protection period will come into effect on Jan. 1, 2023. It includes a rescission (cancellation) fee of 0.25% of the purchase price, or $250 for every $100,000, for those who choose to back out of a deal. For example, if the purchaser exercises the right of rescission on a $1-million home, they would be required to pay $2,500 to the seller.