HOME BUYERS RECISSION PERIOD

The Government of British Columbia recently introduced a new Home Buyer Recission Period, which was enacted to give home buyers more protection and certainty in the real estate transaction process. The new rule, which came into effect on January 1st, 2023, was introduced by the BC government with the goal of providing buyers with more time to make informed decisions about their purchases and to back out of a transaction if necessary.

The main goal of the new Home Buyer Recission Period is to reduce the number of failed real estate transactions and to give buyers more time to assess the condition of the property, review the strata bylaws, and seek professional advice, if necessary. Under the new rule, buyers now have a three business day period, starting from the date of acceptance, to rescind their offer to purchase a home without penalty except for 0.25% of the purchase price. This recission fee is payable by the Buyer to the Seller. The rule applies to all types of homes, including single-family homes, townhomes, and condominiums.

The rules of the Home Buyer Recission Period include a number of provisions to ensure that the process is fair and transparent for all parties involved. For example, buyers must provide written notice of their intention to rescind within the three business day period.

The introduction of the Home Buyer Recission Period in British Columbia represents a significant step forward in protecting the rights of home buyers and ensuring that the real estate transaction process is fair and transparent. With more time to make informed decisions and back out of a transaction if necessary, buyers can feel more confident about their purchases and reduce the risk of failed real estate transactions.