The Home Buyer Rescission Period, previously referred to as the “Cooling Off Period” is new legislation that is in effect as of January 3rd, 2023.
It has been implemented to ensure that home purchasers have an opportunity to conduct due diligence and decide if they really want to move forward with purchasing the property.
The Home Buyer Rescission Period, provides buyers purchasing real estate in B.C. three business days to rescind or withdraw from their accepted offer on a property with no reason given.
The rescission period is not waivable and if the purchaser exercises their right to rescind their offer then they must pay the Seller a fee equal to 0.25% of the purchase price. On a $1,000,000.00 offer, this equates to $2,500.00
There are some properties that are exempt from the rescission right which include:
Residential real property that is located on leased land, residential real property that is sold under a court order sale and residential real property that is sold at auction. Also exempt are new construction strata properties as they already have a 7 day right of rescission.
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If a buyer decides to give notice during the rescission period, it must be done within three clear business days (not including Saturdays, Sundays or holidays) after final acceptance of the Contract of Purchase and Sale. The rescission period includes the three days following acceptance (again, not including any Saturdays, Sundays or holidays) and expires at 11:59:59 pm on the third day. The expiry of this period will be indicated in the Contract of Purchase and Sale.
Once a buyer gives notice, they are responsible for paying the Seller the fee. If a deposit was handed into the brokerage and held in trust, then the rescission fee amount will be paid directly to the seller from the deposit. If there was no deposit paid when the buyer exercises their rescission right, the buyer is required to pay the rescission amount directly to the seller within 14 days after the buyer exercises their rescission right. If the buyer does not pay this amount to the seller, the seller may bring a claim against the buyer for payment.
To recap the home buyer rescission period:
A buyer has 3 business days to rescind their offer.
If the buyer rescinds, there is a 0.25% fee payable to the seller.
There are some properties that are exempt from the rescission right.
Information regarding the New Home Buyer Rescission Period has been sourced from the BC Financial Services Authority’s website. The BCFSA news release can be found here: BCFSA
Krista Lapp
Lapp Real Estate Group
(604) 725-2494
Keller Williams Elite Realty, Coquitlam, B.C.
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About Krista:
Krista Lapp is a Licensed REALTOR® based in Coquitlam and living in Burke Mountain.
Creating valuable relationships and happy clients has always been at the heart of Krista’s beliefs. With over 25 years of sales experience and being a successful entrepreneur, her level of professionalism, customer service, sales & marketing and integrity always result in exceptional client satisfaction.
With 106 sales in 2021, Krista qualified as a President’s Medallion Club Member which recognizes the Top 1% of Real Estate Agents for sales out of over 14,000 in Greater Vancouver. In 2022, her team was #1 in ALL of Canada for dollar volume of sales with Keller Williams for Team Category, with over $118,000,000 in closed Sales Volume. She is also in the Top 1% for sales at her brokerage Keller Williams Elite Realty.
Krista has been rated the #1 Coquitlam Real Estate Agent in 2019-2022, as well as one of the Top 100 Real Estate Agents in Canada for 2021 and 2022. RATE MY AGENT
Krista provides Real Estate services in Coquitlam, Port Coquitlam, Port Moody, Pitt Meadows, Maple Ridge, Langley and the Greater Vancouver area.