Home Buyer Rescission Period

On January 3, 2023, the B.C. government implemented the Home Buyer Rescission Period (“HBRP”) for residential real estate transactions. Also known as the “cooling-off period”, this legislation provides buyers with an opportunity to rescind their offer to purchase residential properties up to three days after an offer is accepted. If a buyer chooses to rescind their offer in the time period provided, they must pay the seller 0.25% of the offer price. This rescission period applies to residential transactions of residential real property regardless of whether a real estate licensee is involved in the transaction and cannot be waived by the buyer or seller.

Residential Properties Eligible for the HBRP

Not all properties are included in the HBRP legislation. The rescission period applies to the following types of residential properties:

1. A detached house;
2. A semi-detached house;
3. A townhouse;
4. An apartment in a duplex or other multi-unit dwelling;
5. A residential strata lot, as defined in Section 1(1) of the Strata Property Act;
6. A manufactured home that is affixed to land; and
7. A cooperative interest, as defined in Section 1 of the Real Estate Development Marketing Act, that includes a right of use or occupation of a dwelling.

The following property types are excluded from the HBRP:

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

Important Information for Buyers

A buyer has the right to rescind a home offer within three business days after the offer is accepted, regardless of whether a real estate licensee is involved in the transaction. The three-day rescission period excludes weekends and holidays.

Only buyers can rescind a contract under the HBRP. If a buyer chooses to rescind their offer, they must:

• Notify the seller in writing before the rescission period expires; and

• Pay the seller a rescission fee. The rescission fee is 0.25% of the offer price.

Important Information for Sellers

The right to rescission cannot be waived by the buyer or the seller. The seller will receive a disclosure of the buyer’s right of rescission when an offer is made. The disclosure may be on a separate form, or included in the Contract of Purchase and Sale.

If a buyer chooses to rescind their offer and their brokerage is not holding the deposit, the seller is advised to seek legal advice for options on how to pursue the buyer for money owed.

Buyers do not need to provide a reason to sellers if they choose to rescind the contract.