B.C. mandates ‘cooling off’ period for homebuyers

April 5, 2022

B.C. Finance Minister Selina Robinson. | BC Government

A cooling-off period is coming for resale homes in British Columbia, but the province has yet to announced the details of the regulation, including where and when it will be applied and how long the period would last.
B.C. Finance Minister Selina Robinson introduced the Property Law Amendment Act in the legislature on March 28. The bill will give purchasers the right to “rescind the contract of purchase and sale for the property by serving written notice of the rescission on the seller.”
“People need to have protection as they make one of the biggest financial decisions of their lives,” Robinson told media in a briefing following the bill’s introduction. “The status quo is only working for those who profit from an over-heated housing market.”
Originally announced November 2021, the cooling-off period parallels the existing seven-day period for buyers of a pre-sale strata unit, such as a new condo apartment or townhome.
The length of the rescission period for other residential properties has yet to be determined, and may vary with location.
“British Columbia is a large province with different housing markets,” Robinson said. “Things might be very active in the South Island or Lower Mainland; they might not be particularly active in the North, and you might not need the same consumer protections in the same way.”
She said the bill could also be responsive to shifting market conditions.
A regional approach was also taken with the foreign buyers tax introduced by the BC Liberals in 2016 and the speculation and vacancy tax the BC NDP in 2017.
A consultation the BC Financial Services Authority undertook when the measure was first announced will guide the specifics of the bill.
Robinson says the change targets multiple-bid scenarios, and aims to address purchases homeowners make because they don’t feel they can afford the luxury of a home inspection or because they agree to a sale but then realize they may not be able to afford it.
Both the Home Inspectors Association of BC and Mortgage Professionals Canada,which represents lenders, are in favour of the move. The B.C. Real Estate Association, however, has stated a cooling-off period would create more problems than it solves, including greater uncertainty for sellers and an increase in frivolous offers.