BC aims to help home buyers with a ‘cooling-off’ period

BC has introduced amendments to the Property Law Act today to enable the creation of a new Homebuyer Protection Period to protect people as they navigate a challenging real estate market.

The Homebuyer Protection Period, sometimes called a “right of recission,” responds to concerns that in the highly competitive housing market, buyers are reporting pressure to submit offers without basic conditions intended to protect their interests.

BC is consulting with various stakeholders and expects to have the protection measures in place by this summer.

The amendments would enable the creation of a period to give people buying a home more time to consider their offers, ensure financing and obtain a home inspection, instead of feeling like they need to waive these conditions.

Regulations will be introduced this year to define the specific time homebuyers will have to exercise this right as well as the financial costs of retracting an offer. The legislation also allows for regional variation within the province, recognizing the housing market varies between regions.

“People need to have protection as they make one of the biggest financial decisions of their lives,” said Selina Robinson, Minister of Finance.

“In our overheated housing market, we have seen buyers feeling pressure to waive conditions just to be considered, and new homeowners discovering costly problems only after a deal has closed. We want to make sure people buying a home have time to get the information they need to make a sound decision within limits that still give sellers the certainty they need to close sales.”

Industry representatives estimate that more than 70% of offers in B.C.’s most competitive markets over the past year may have been made without conditions, which can lead to major repair and renovation costs or the loss of a deposit if the buyer’s financing falls through.