On January 1, 2023 the government introduced a cooling off period for buyers, a home buyer protection period, that allows home buyers three business days to back out of an accepted offer.
Key Points about the home buyer rescission period:
- The period will be effective January 1, 2023.
- Buyers will have three business days following the accepted offer date to back out of a residential purchase agreement.
- The period is mandatory and can’t be waived by the parties to the contract.
- Buyers who back out of a contract within this three-day period will have to pay a rescission fee of 0.25% of the purchase price ($250 per $100,000)
- The rescission fee is paid to the seller.
The home buyer rescission period applies to following property types:
- Detached homes
- Semi-detached homes
- Apartments in a duplex or other multi-unit dwelling
- Strata lots
- Manufactured homes affixed to land
- Co-operative interest that include right of use or occupation of dwelling.
There are a few types of properties...