Protecting Your Rights as a Homebuyer: The Home Buyer Rescission Period
There's a new change coming to the real estate market in British Columbia that you should know about. Starting on January 3, 2023, you'll have the right to "cool off" after making an offer on a home. This is called the Home Buyer Rescission Period (HBRP) and it gives you the right to change your mind and cancel your offer within three business days of it being accepted.
Here's how it works: let's say you make an offer on a home and the seller accepts it. You'll then have three business days to decide if you really want to go through with the purchase. If you change your mind, you can cancel the offer and get your deposit back. Just keep in mind that there's a fee for canceling, which is 0.25% of the purchase price or $250 for every $100,000 (whichever is less).
One thing to keep in mind is that the HBRP runs at the same time as the "subject removal period." This is the time you have to remove any conditions from your offer, like getting a home inspection or selling your current home. So, if you have a subject clause in your contract and you want to cancel your offer, make sure to do it within the three-day HBRP period.
Your real estate agent is also required to give you some important information about the HBRP. They'll need to make two disclosures to you. The first one is included in the Disclosure of Representation in Trading Services (DORTS) and must be made before you start working with them. The second, more detailed disclosure is required when they prepare an offer to purchase on your behalf or when they present an offer to you. Both of these disclosures need to be on a form approved by the Superintendent.
At the Reimer Team, we're happy to answer any questions you might have about these changes. We want you to feel confident and informed throughout the home buying process, so don't hesitate to ask us anything. We're here to help you find your dream home and make the most of the new HBRP.
Overall, the HBRP is a great new option for home buyers in British Columbia. It gives you some extra time to think about your decision and make sure you're comfortable with it. Just remember that there are some rules and restrictions, so make sure to talk to your real estate agent and read up on the details. Good luck with your home search!