What is the Home Buyer Recission Period?
The Home Buyer Rescission Period was developed by the British Columbia Financial Services Authority (BCFSA). The BCFSA is the governing body for BC real estate agents. The HBRP was implemented in response to the multiple offer situations in 2020-2022. During that frenzy, buyers were writing overpriced offers with no subjects, and then upon acceptance of their offer, regret set in as there was no “easy” way out of the transaction. The HBRP is also known as a non-negotiable, “cooling off period”.
The HBRP provides buyers an opportunity to rescind their subject-free contract to purchase certain residential properties. These properties in Whistler include those zoned for nightly rentals. The buyer has three business days after an offer is accepted to decide whether to rescind the offer or not. To rescind there is a financial penalty of .25% of the accepted price. In other words, if you rescind or pull out of a subject-free offer, the buyer pays the seller .25% of the accepted price.
Offer with Subject Conditions
When an offer has subject conditions, the buyer is still able to rescind within 3 days, and this time, there is no .25% penalty. However, best practice dictates that the buyer would be prudent to wait until the subject conditions removal date and then not remove subjects. The buyer and seller have agreed to a due diligence period so, the buyer should make the most of that time.
Working with a Real Estate Agent
Understanding and explaining the HBRP to a client is the role of your realtor. This is part of Representation and is one of the first interactions you will have. Buying real estate is a litigious game, so ensure that you are working with an experienced, local Whistler real estate agent.
If you think I would be a good fit to work with you and your family, and you are not already working with a Whistler realtor, please contact me.
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