B.C. Now Has a 3 Day Protection Period For Homebuyers

Published by To Do Canada On January 4, 2023

British Columbia is now Canada’s first province to require a three-business-day period which will allow homebuyers more time to secure financing or arrange home inspections.

The homebuyer recission period which took effect yesterday will give homebuyers more time to consider whether a purchase is right for them under any market conditions, including in the face of rising interest rates and any high-pressure sales.

The law also includes a cancellation fee of $250 for each $100,000 of a home’s purchase price ( 0.25% of the purchase price). This amounts to the buyer paying $2,500 to the seller on a $1 million property if they exercise the right of rescission.

The government says the cancellation fee ensures that all parties take the transaction seriously, but the 3-day period will protect buyers in high-pressure sales or future overheated markets.

The protection period applies to all residential real estate sales, including private sales, with limited exceptions:

Residential real property that is located on leased land;
A leasehold interest in residential real property;
Residential real property that is sold at auction; and
Residential real property that is sold under a court order or the supervision of a court.

More Information is available here.