On January 1st, 2023, this new legislation, originally known as the ‘cooling-off period’, provides buyers in B.C. three business days to rescind/cancel a contract (in others words, an accepted offer) to purchase residential real property. These guidelines will provide practical guidance on managing consumers and the Home Buyers Recision Period (HBRP).
- This new act applies to ALL contracts, regardless of any subjects on the property
- This period is mandatory and CANNOT be waived
- Any purchaser who backs out within the 3-day period is subject to a fee of 0.25%, for example if the homebuyer is purchasing a $1million property and rescinds the offer, they would pay $2,500 to the seller
- A homebuyer’s realtor is required to provide general information on this new act to all their clients
- If the homebuyer participates in rescinding the contract, then it is necessary for them to provide a written notice to the seller informing them of their decision, in which the notice should include the property address, name and signature of buyer, the names of all sellers within the contract and the date of rescission.
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