The New Home Buyers Rescission Period

By now you have heard about the Home Buyers Recision Period (HBRP) enacted  as of January 3, 2023 

1. So, what’s changed?

The new legislation provides buyers an opportunity to rescind a contract to purchase residential real property up to 3 business days after an offer is accepted.

If a buyer decides to rescind their offer during the HBRP, they must pay the seller 0.25% of the purchase price.

2. What type of properties are subject to the HBRP?

  • A detached house

  • A semi-detached house

  • A townhouse

  • An apartment in a duplex or other multi-unit dwelling

  • A residential strata lot

  • A manufactured home that is affixed to land, and

  • A cooperative interest that includes the right of use or occupation of a dwelling

3. What type of properties are excluded from the HBRP?

  • Residential real property that is located on leased land

  • A leasehold interest in residential real property

  • Residential real property that is sold at auction

  • Residential real property that is sold under a court order or the supervision of a court, and

  • Any purchase and sale of property under the Real Estate Development and Marketing Act where Section 21 of that Act applies

As Realtors it's our duty to disclose all new information pertaining to this new legislation. We have two disclosures to make. 

1.The Disclosure of Representation in Trading Services (DORTS) form was introduced as a mandatory form for real estate professionals in 2018, a as part of the Real Estate Rules made under the Real Estate Services Act.

Real estate professionals must disclose to consumers whether or not they will represent the consumer as a client, and the duties they owe to clients and to non-clients. Click link for your own copy to review.

Disclosure of Representation in Trading Services

2.The second disclosure is made at the time of preparing or presenting an offer to your client. The disclosure is required to be on a form approved by the superintendent and must include the following.

  • The fact that the right of rescission cannot be waived
  • The period during which the buyer may exercise their rescission rights
  • The calculation of the dollar amount that the buyer must pay to the seller and when and how that amount must be paid
  • The requirement to return to the buyer the remainder of the deposit (if one is being held) after the prescribed amount is paid to the seller from the deposit; and
  • The exemptions to the right of rescission.

Sources: BCFSA


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