Have you heard of the three-day Rescission Period?
This law has been announced by the provincial government of British Columbia and will be in effect on January 1st 2023.
This mandatory “cooling-off period” law affects residential real estate and people wishing to buy a home. It will provide protection to those looking to buy a home in British Columbia, as well as provide them with the opportunity to perform due diligence before making their life-changing decision of purchasing a home.
Here’s a quick breakdown of the three-day rescission period:
Let’s say you’ve found a house you want to buy. Yet, that house may have 4 or 5 other offers. In order to be competitive in that market, buyers in the past had to make subject-free offers in waiving their right to an inspection.
However, starting on January 1st, 2023 when the law is in effect if buyers are in a position to be competitive to win the bid and buy their desired home if the offer has no subjects on it, they will have a three-day rescission period.
That means that if their offer gets accepted, buyers will have three days to offer acceptance to decide if they truly want to make the purchase of buying the home or not.
If the buyer decides to walk away from the house’s offer, there will be a 0.25% fee in order to do so.
So, to keep it simple; if the home costs $1,000,000, the buyer will have to pay the seller $2500 to walk away from the purchase within that 3-day period.
When the 3-day period expires, the buyer has purchased the property. This gives potential homebuyers time to arrange an inspection and secure financing.
Have any more questions about the three-day rescission period?
Reach out to us: 604-657-7936