What is the Home Buyer Rescission 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 0.25% of the accepted price. In other words, if you rescind or pull out of a subject-free offer, the buyer pays the seller 0.25% of the accepted price.

Offer with Subject Conditions

Several scenarios can occur with short subject removal condition dates. For example, this happens when the Buyer has received the strata documents but is now waiting for a current Form B. That might have been ordered and is due any day. Therefore, the realtors would agree to a short-subject removal condition date. Here are examples:

1) When an offer has subject conditions, the buyer is still able to rescind within 3 days, and this time, there is no 0.25% 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. You don’t want to end up in a situation where the courts are now interpreting your actions. Always follow the contract.

2) It is best practice to have the subject removal date at least one day after the end of the HBRP. The subject conditions override the HBRP.

3) The listing agent is responsible for completing the section in the Contract of Purchase and Sale detailing the information regarding notification of a rescission.

4) When the subject removal date is before the HBRP date, then the subject conditions are removed by that date. However, the Buyer can still exercise their right to withdraw from the contract under the HBRP. See table below.

The following table is used to explain this, please note, that there are no Saturday, Sunday, or stat holidays in this example.

Subject Removal Date	HPRP Active Dates
Jan 10	Jan 7-9	subject conditions over-rule HBRP. The Buyer should wait until Jan 10 to notify the Seller of either removing the subject conditions or not removing subject conditions.
Jan 8	Jan 7-9	subject conditions removed but the Buyer has until Jan 9 to withdraw from the contract and pay the penalty.

Timing of Deposit

If the offer has no subject conditions, the HBRP will be in full force and effect. Therefore, when the subject-free offer is written, the Seller will require the deposit to be paid to the Buyer’s Brokerage held In Trust, within 24 hours of the accepted offer. If the Buyer rescinds the offer within the 3 days, then the 0.25% rescission penalty will be deducted by the Buyer’s brokerage accordingly before sending the balance back to the Buyer.

Payment of the .25% of the sale price is between the Buyer and Seller, has nothing to do with the realtors. Therefore, the process for the seller to collect this penalty from a buyer would be arduous if the deposit has not been paid. Check out my blog Deposits are Serious Business

No HBRP

There is no HBRP on Phase 2 properties. This is because the phase 2 property is treated as a business income property, rather than a rental property.

There is no HBRP on Quarter-Share Properties. Quarter shares are phase 1 properties. No explanation as to why the HBRP is excluded.

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. My name is Marion Anderson, and I help people buy real estate in Whistler.

Marion