New Protections In Place For B.C. Homebuyers

Homebuyers in B.C. now have better protection in the real estate market as the homebuyer protection period has taken effect.

BC is the first jurisdiction in Canada in creating a mandatory three-business-day period to give homebuyers more time to secure financing or arrange home inspections.

Some in the industry say the three day waiting period will have no impact on the current market, as things have settled significantly since 2021 when the legislation was proposed.

In a statement, Finance Minister Katrine Conroy says it’s an important milestone as BC leads the way in protecting people and strengthening public confidence in the real estate market.

The homebuyer protection period includes a rescission or cancellation fee of 0.25% of the purchase price, or $250 for every $100,000, for those who cancel their contract to help ensure that all parties are taking the transaction seriously. For example, if the buyer exercises the right of rescission on a $1-million home, they would be required to pay $2,500 to the seller.

Leo Spalteholz, a Victoria-based housing analyst, notes the negative effects when the balance of power tilts too far toward sellers. He sees the new rules as a way to protect buyers in high-pressure sales or future overheated markets.

Legally known as the homebuyer rescission period, the protection period applies to all residential real estate sales, including private sales, with limited exceptions.