Home Buyer Rescission Period in British Columbia
Duration:
- The rescission period is 3 business days, not calendar days. This means it excludes weekends and statutory holidays.
- The period begins the day after the buyer signs the purchase agreement and typically ends at 11:59 PM on the third business day.
Cost:
- If a buyer chooses to rescind their purchase, they are required to pay a rescission fee of 0.25% of the purchase price. This fee is deducted from any deposit or earnest money paid.
- This cost is intended to cover administrative expenses and other potential losses for the seller.
Notification:
- To exercise the right of rescission, the buyer must provide written notice to the seller or their agent within the 3 business-day period.
- The notice must be given in accordance with the terms outlined in the purchase agreement.
Refund:
- If the rescission is executed within the allowed period, the buyer is entitled to a refund of the deposit minus the 0.25% rescission fee.
- The refund should be processed promptly, and the buyer should receive it as soon as the rescission is confirmed.
Exclusions:
- The rescission period does not apply to purchases at auction or to pre-owned properties.
- It also does not apply to homes bought through private sales or other non-standard transactions.
Contract Terms:
- Carefully review the purchase agreement for specific terms related to the rescission process. Ensure that you follow any additional requirements or procedures outlined in the contract.
Legal and Regulatory Resources:
- For additional information and guidance, refer to resources provided by the BC Financial Services Authority (BCFSA), which regulates real estate practices in British Columbia.
- The British Columbia Real Estate Association (BCREA) can also provide support and resources related to the rescission period.
Practical Steps for Buyers
- Track Business Days: Make sure to calculate the 3 business days correctly, excluding weekends and holidays.
- Prepare for the Fee: Be aware of the 0.25% rescission fee and plan accordingly.
- Document Everything: Keep detailed records of the purchase agreement, any communications, and the rescission notice.
- Consult Professionals: If you have any questions or need clarification, consider consulting a real estate lawyer or advisor to ensure you understand the process and adhere to all requirements.
Example Scenario
If you sign a purchase agreement for a new home on a Monday, the rescission period would end at 11:59 PM on Thursday of the same week, provided there are no holidays. If you choose to rescind by providing the appropriate notice within this period, you will be responsible for paying a rescission fee of 0.25% of the purchase price, with the remainder of your deposit being refunded.
In British Columbia, the Home Buyer Rescission Period (HBRP) applies to specific types of residential properties. Here’s how it applies to various types of homes:
1. Detached House
- Applies: Yes. The rescission period applies to newly built detached single-family homes purchased from a developer or builder.
2. Semi-Detached House
- Applies: Yes. Semi-detached homes (where two single-family homes share a wall) that are newly constructed and purchased from a developer are covered by the rescission period.
3. Manufactured Home Affixed to Land
- Applies: Yes. Newly constructed manufactured or modular homes that are permanently affixed to land are covered by the rescission period.
4. Cooperative Interest
- Applies: No. The rescission period does not typically apply to cooperative housing arrangements, where buyers purchase shares in a corporation that owns the building. The HBRP is generally for properties where the buyer directly acquires ownership of a physical unit.
5. Occupational Dwelling
- Applies: No. The rescission period usually does not apply to properties that were originally used for commercial or industrial purposes but are now residential, unless they are newly built and sold as residential properties by a developer.
Summary
In essence, the Home Buyer Rescission Period in British Columbia applies to newly built residential properties, including detached houses, semi-detached houses, townhouses, apartment units in multi-unit dwellings, and manufactured homes affixed to land. It does not generally apply to cooperative interests or properties with a history of non-residential use unless they are newly constructed residential units.
Homes Exempt from the Home Buyer Rescission Period
Leased Land
- Exempt: Yes. Properties where the land is leased rather than owned are exempt from the rescission period.
Leasehold Interest
- Exempt: Yes. Properties involving leasehold interests, where the buyer acquires a lease rather than ownership of the land, do not qualify for the rescission period.
Property Sold at Auction
- Exempt: Yes. Properties sold through an auction are not covered by the rescission period.
Property Sold Under a Court Order
- Exempt: Yes. Properties sold under court orders or judicial proceedings are exempt from the rescission period.
Presale Properties
- Exempt: Yes. Properties purchased as presales, where buyers are purchasing new homes or condos before they are built or completed, are exempt from the rescission period.
Summary
The Home Buyer Rescission Period in British Columbia does not apply to:
- Leased Land: Land is leased rather than owned.
- Leasehold Interests: The buyer acquires a lease for occupancy, not ownership.
- Auction Sales: Properties sold through auctions.
- Court-Ordered Sales: Properties sold under a court order.
- Presale Properties: Newly constructed homes or condos bought before they are completed.
