The new Home Buyer Rescission Period (“HBRP”) is now in force for residential real estate transactions in the province. Also known as the “cooling-off period,” HBRP improves consumer protection in the real estate market by giving homebuyers time to consider whether a purchase is right for them under any market conditions. This especially helps the buyer under a highly competitive market.
HBRP allow homebuyers to rescind a contract to purchase residential real estate, including private sales, for up to three clear business days after the offer is accepted. This right cannot be waived even if both of the parties agree. Therefor, a buyer can change their mind for any reason within the rescission period but must then pay a 0.25% fee to the seller, which help ensure that all parties are taking the transaction seriously.
The HBRP and any subject conditions included in the contract of sale both start counting down at the same time and run concurrently. If those subject conditions such as financing, inspection etc., are not waived by the buyer, the financial penalty is not applicable.
It is important to note that the rescission period does not give a buyer’s inspector or appraiser access to the property unless specifically mentioned in the contract of purchase and sale.
If you are planning to move, make sure that you buy the property that is right for you by contacting our team.