Cooling-Off Period on Residential Real Estate Comes into EffECT JANUARY 2023

 In January 2023 the B.C. government will implement changes to the Property Law Act to make the Home Buyer Rescission Period (“HBRP”) or ‘cooling-off period’ mandatory for residential real estate transactions. 

This video will provide an overview of the HBRP and explain how buyers will have the right to rescind or cancel their offer to purchase certain types of residential real property within three business days after an offer has been accepted. 

The video is an introduction to the concept of HBRP, understanding the types of residential property it applies to, knowing the disclosure forms used in the transaction and learning about the exemptions to the right of rescission. 

The HBRP will allow homebuyers to rescind a contract to purchase residential real estate within the set period, even if the contract does not include conditions. It will begin the next business day after the final acceptance of an offer. The rescission period will be in effect for three business days and cannot be waived by either the seller, buyer, or their representatives. During this period, homebuyers can still legally withdraw from the purchase without justification at the cost of a rescission fee equal to 0.25 per cent of the purchase price.

The HBRP and any subject conditions in the contract of sale both start counting down at the same time and run concurrently if subject conditions have been included in the contract of sale.                                                                                       

*We believe our clients are better protected when they know their rights and responsibilities

Posted by Stephen Foster on
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