B.C. puts in place three-day cooling off period on real estate sales starting January 1, 2023
So what does this mean for you ?
The three-day cooling-off period will allow a buyer three business days following an accepted offer to conduct due diligence such as inspections, seeking legal advice and confirming financing. Instead of having your pre-inspections done before offer day, you will now have the opportunity to do all your due diligence after an accepted offer.
The cooling-off period is one of seven recommendations the B.C. Financial Services Authority made in May to protect consumers in B.C.’s real estate market.
The homebuyer protection period includes a rescission (cancellation) fee of 0.25 per cent of the purchase price, or $250 for every $100,000, for those who choose to back out of a deal.
For example, if the purchaser exercises the right of rescission on a $1-million home, they would be required to pay $2,500 to the seller.
What do you do if there is an issue with the home and you need to pull out of the deal?
There are no specifics yet as to what happens if:
- There is a major issue and you have to re-negotiate the price
- What happens if the financing does not come through and you have to back out of the deal
- Will you have to show proof? and to what extent.
There is still yet to be more details as to how this will be rolled out and specifics. The addendums and/or clauses to the contract of purchase and sale are yet to be identified as well.