The Home Buyer Rescission Period
Buying a home is no small feat. It’s an exciting and sometimes nerve-wracking process that requires a lot of thought and consideration. But what happens if you decide to back out of the deal? Let’s explore the Home Buyer Rescission Period in British Columbia and what it means for prospective homeowners!
What is a rescission period?
The rescission period—or cooling-off period, as it’s sometimes referred to—is a prescribed time frame mandated by law where buyers can cancel their purchase agreement. In BC, this period is three business days long, meaning that home buyers have 72 hours from the time their offer is accepted to rescind the contract to purchase.
What are some of the consequences of cancelling during the rescission period?
If you decide to cancel your purchase within this three day window, you would pay the seller .025% of the agreed upon purchase price. Another drawback is that you may not be able to find another suitable property due to market conditions.
Are there any exceptions to the rescission period?
There are some exemptions to the rescission period such as properties on leasehold land, foreclosures, and auctioned properties.
The Home Buyer Rescission Period in BC provides much-needed protection for those entering into a real estate transaction. Knowing when and how these regulations apply can help protect potential buyers from making a costly mistake or having buyer’s remorse later down the road. As always, it’s important to do your research and read all documents thoroughly before signing on the dotted line—it could save you thousands!