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Homebuyer protection period begins in B.C.
A mandatory three-business-day homebuyer protection period began Jan. 3.
The protection period is to give homebuyers more time to secure financing or arrange home inspections, a move made by the Ministry of Finance following the B.C. Financial Services Authority’s (BCFSA) report on improving consumer protection in the real estate market.
The extra time will help buyers fully 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 ministry stated in a media release.
“Housing remains a top concern for people in B.C. and a top priority for this government,” said Katrine Conroy, Minister of Finance. “Buying a home is one of the biggest decisions of people’s lives. This is an important milestone as we lead the way in protecting people and strengthening public confidence in the real estate market.”
The homebuyer protection period, also referred to in the industry as the homebuyer rescission period, includes a rescission or cancellation fee of 0.25% of the purchase price, or $250 for every $100,000, for those who cancel their contract to help ensure that all parties are taking the transaction seriously.
For example, if the buyer exercises the right of rescission on a $1-million home, they would be required to pay $2,500 to the seller.
“Consumer protection is core to what BCFSA does,” said Blair Morrison, CEO of BCFSA and superintendent of real estate. “We’ve worked extensively with real estate licensees to get them ready for the introduction of this new protection in B.C. in 2023. We urge consumers with questions about the [homebuyer protection period] to speak directly to their real estate licensee.”
BCFSA is responsible for the supervision and regulation of the financial service sector, including real estate professionals, mortgage brokers, insurance, pensions, trusts, credit unions and the Credit Union Deposit Insurance Corporation.
B.C. is the first province to implement a homebuyer protection period for resale property and newly constructed homes.
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