The Home Buyer Rescission Period – What You Need To Know

The BC Financial Services Authority (BCFSA) proposed the Home Buyer Rescission Period (HBRP) in May of this year, and it will be implemented province-wide on January 3, 2023. The HBRP legislation grants certain homebuyers the right to cancel their real estate purchase within three clear business days of accepting an offer, regardless of whether the offer is subject-free or not. This rescission period applies to all residential real estate sales, including for-sale-by-owner and private sales.

At the start of the transaction, the real estate agent will provide the client with information about the right to rescind and a Disclosure of Representation in Trading Services form. Additionally, the real estate broker must disclose that the rescission period cannot be waived, the length of the rescission period, the rescission fee amount, how the deposit will be handled, and any applicable exemptions. If the buyer rescinds the offer within the three-day rescission period, the seller must be paid 0.25% of the purchase price. The real estate brokerage must then return the deposit to the buyer, minus the rescission amount.

It is important to note that the buyer is not required to provide a reason for rescinding the contract during the rescission period. The Right of Rescission period begins after two conditions are met: the buyer signs a form acknowledging that they have read the Disclosure Statement, and both parties have agreed to all the terms and signed the legally binding contract of purchase and sale.

The rescission period applies to several types of properties, including detached houses, semi-detached houses, townhouses, apartments in duplexes or other multi-unit dwellings, manufactured homes affixed to land, and cooperative interests. However, there are certain types of residential real property excluded from the rescission period, such as properties located on leased land, leasehold interests in residential real property, and residential real property sold at auction or under court supervision.

If you have any questions about the Home Buyer Rescission Period or any other related topic, please don't hesitate to contact us at 604 913 1000 or explore our collection of blog posts.