What is the Home Buyer Rescission Period?

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
  • Townhouses
  • 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.  

Multigenerational Home Renovation Tax Credit

Federal tax changes including the Multigenerational Home Renovation Tax Credit came into effect on January 1, 2023.

If a family decides to add a secondary unit to their home to allow an immediate or extended family member to live with the, this tax credit will cover the eligible construction costs for the same.  To be considered for the tax credit, the renovation must be completed in the owner's primary residence where they live with a senior or disabled person. 

If the tax credit is approved, it will cover 15 per cent of costs and can be up to a maximum of $7,500.  Eligible expenses would cover the cost of labour, building materials and also, equipment rentals and permits. 

Expenses that will not be covered under the tax credit include furniture, household appliances, construction and equipment tools, routine repair or maintenance costs, and devices and landscaping or security services. 

All expenses for the renovation have to be shown in receipts.

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