This new legislation provides Buyers an opportunity to rescind (walk away from) a contract to purchase a Residential real property.
Points to Remember:
- The Buyer has up to 3 clear business days (not including weekends or holidays) after they have an accepted offer, the Buyer does not have to provide a reason for rescinding and must pay a .25% fee on the accepted purchase price (eg. $1,000,000 would be $2,500.00) directlyy to the Seller within 14 days of rescinding.
- After Day 4 the Buyer can only walk away from the deal if Subject Conditions are not fulfilled nor removed.
- The Legislation prohibits the HBRP being waived by either the Buyer or the Seller.
Residental Properties that are affected by the HBRP:
- Detached homes
- Semi-Detached homes
- Multi-unit buildings
- Residential strata lots (bareland strata)
- Manufactured homes with land
- A property that is registered at Land Titles
Properties that are exempted from the Rescission Requirements of the HBRP:
- Residential property on leased land
- Leasehold interest in a residential real property
- Residential real property sold at auction
- Residential real property sold under a Court Order
Rescission must be in writing and can delivered by:
- registered mail to the Seller's address or
- faxed to the Seller or
- emailed to the Seller with a Requested Read Receipt or
- delivered directly to the Seller in person.
- the Sellers' preferred method, and address must be noted on the Contract of Purchase & Sale
Funds for the Rescission will be taken directly from any Deposit funds provided by the Buyer.
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