The Home Buyer Rescission Period (HBPP), previously known as “Homebuyer Protection Period” and “cooling-off period,” is expected to be implemented province-wide on January 3, 2023.
What is the Home Buyer Rescission Period (HBRP)?
The HBRP, commonly known as a “rescission period,” gives buyers the right to withdraw from a purchase agreement within a specified period of time after an offer is accepted. Without a rescission period, if a buyer wishes to terminate an unconditional contract, they would need to negotiate with the seller and would typically face significant financial penalties or legal ramifications.
What properties will be subject to the HBRP?
The policy will apply to the following types of structures:
- detached homes,
- semi-detached homes,
- townhouses,
- apartments in a duplex or other multi-unit dwellings,
residential strata lots, - manufactured homes that are affixed to land, and
- cooperative interests that include a right of use or occupation of a dwelling
How much is the rescission fee?
Buyers who exercise their right to rescind will have to pay a fee of 0.25% of the purchase price. For a $1,000,000 home, this would result in a $2,500 fee paid to the seller.
What is meant by “three business days?”
The HBRP provides that the buyer must exercise their rescission right within three clear business days. Business days do not include Saturdays, Sundays or holidays. Holidays are defined within the Interpretation Act to include:
- Christmas Day
- December 26
- Family Day
- Good Friday
- Easter Monday
- Victoria Day
- Canada Day
- British Columbia Day
- Labour Day
- National Truth and Reconciliation Day
- Thanksgiving
- Remembrance Day, and
- New Year’s Day
In addition, a day set by the federal or provincial government, such as a day of mourning or celebration, is considered a public holiday.
How can I learn more about the HBRP’s details when they are available?
Click on the link below: