The New Homebuyer Protection Period in British Columbia
On Thursday, July 21, 2022, the British Columbia Provincial Government released details on its latest real estate consumer protection initiative – the “Homebuyer Protection Period”. Effective January 1, 2023, purchasers of residential properties in British Columbia will be provided with a mandatory 3 business day ‘right of rescission’. During this protection period, buyers may choose to walk away from a conditionally accepted contract to purchase a residential real estate property for any reason. The 3-business day protection period commences the day after an offer to purchase a residential property is signed by both the buyer and the seller.
Buyers and sellers are prohibited from waiving this mandatory protection period in their contracts. This may prove to be a welcomed clause for future home buyers in British Columbia and will help to ensure that all buyers have ample time to make sure that they are making the right decision when purchasing a home. This protection period is intended to protect buyers who might be in a competitive situation for the home of their dreams. It is all part of the Provincial Government’s overarching plan to create a more fair and transparent real estate market in British Columbia.
The Homebuyer Protection Period will also help buyers who have an accepted subject-free offer (such as going without a home inspection), as it provides a way for a buyer to walk away from a contract for a modest cost.
The Act applies to residential real property, meaning a detached house, semi-detached house, townhouse, apartment in a duplex or other multi-unit dwelling, residential strata lot, manufactured home on land or a cooperative interest.
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We will be monitoring the effects (if any) that these changes in the law will have on the housing market here in the Okanagan. We want all our clients to make the best choice when placing an offer on any property. So, when you’re ready, please give me a call and let’s get looking for your new home!