The government has introduced a cooling off period for buyers, in response to the 2021-early-2022 hot real estate market that saw many buyers putting in unconditional offers on their home purchases.

Beginning January 1, 2023, home buyers can rescind their purchase contract within 3 days of a seller accepting it, should they change their mind. Rescinding an offer doesn't come without ramifications; buyers will be charged 0.25% of the purchase price to back out of their accepted purchase agreement.

This new protection is meant to give buyers more time to arrange financing, home inspections and to provide buyers with an added layer of protection in their purchase. In essence, this accounts to three-days grace should you experience a case of buyer's remorse; thus, allowing you to get out of the contract regardless of any lack of conditions/subjects in your offer.

This protection is a concern in a seller's market where buyers were submitting over-ask, unconditional offers in order to win a multiple-offer situation. In a buyer's market, we don't typically see unconditional offers as buyers are able to ensure their offer and contract properly protects them in their purchase.

This legislation is different than the 7-day right of recission already in place in BC, protecting buyers in a new-development presale purchase.

Ultimately, buyers should work with a professional, experienced real estate professional who will help you prepare your offer to purchase with subjects that protect you and allow you to do your due-diligence on your home purchase (regardless of this new contract recission period).

Sellers should also be working with a professional, experienced real estate professional as well, to ensure a successful sale.

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