What is the Home Buyer Rescission Period?

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.  


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