The Home Buyer Rescission Period has been implemented province-wide on January 3, 2023.

What is the Home Buyer Rescission Period (HBRP)? 
The HBRP, commonly known as a “rescission period,” gives buyers the right to withdraw from a purchase agreement within 3 business days after an offer is accepted. Without it, buyers would need to negotiate with the seller and face significant financial penalties or legal ramifications.

What properties are subject to the HBRP?
The policy applies to the following types of structures: detached homes, semi-detached homes, townhouses, apartments in a duplex or other multi-unit dwellings, residential strata lots, manufactured homes that are affixed to land, and cooperative interests that include a right of use or occupation of a dwelling.

How much is the rescission fee?
Buyers who exercise their right to rescind will have to pay a fee to the seller of 0.25% of the purchase price. For a $1,000,000 home, this would result in a $2,500 fee paid to the seller.

What is meant by “three business days?”
Buyer must exercise rescission rights before 11:59pm on the 3rd business day, excluding Saturdays, Sundays and holidays.

Are there any exemptions?
There are narrow exemptions, including: sales of residential real property located on leased land, sales of leasehold interest in residential real estate, sales at auction, sales by way of an Assignment of Contract, pre-construction sales of multi-unit development properties, which are already subject to a seven-day rescission period, and sales under a court order of supervision of a court.

What if there are subjects?
If a buyer writes an offer that has subjects, subjects proceed independently of the HBRP. Ie if there is a 2 day subject period, subjects still must be removed in 2 days to keep the contract valid. If the subject removal period is longer than 3 business days the effect of the HBRP will be limited.

CREDIT: BCREA