Home Buyers Recision Period

What is it & how is it effecting or pertaining to you?

‣ As of January 2023, The Home Buyers Recision Period allows you to back out of the your purchase for ANY reason within THREE business days from the final acceptance date, even if it’s considered a “no subject offer”. 

‣ The HBRP cannot be waived from the contract even if agreed by both the buyer and the seller.

‣ If you do decide to rescind from your offer within the three business day recision period, there is penalty that applies. It is a total of 0.25% of the purchase price.  For example, on a $1,000,000 purchase, the penalty will be $2,500.

‣ You are still able to have your regular subject conditions in the offer such as financing, inspection, reviewal of the title search etc… If you do not fulfill the subject conditions included in your offer, there is no penalty payable for backing out of the contract. You should still make a good faith effort to remove any subject condition included in your offer.

‣ The HBRP are subject to the following types of properties: 
- a detached house;
- a semi-detached house;
- a townhouse;
- an apartment in a duplex or other multi-unit dwelling;
- a residential strata lot, as defined in section 1 (1) of the Strata Property Act;
- a manufactured home that is affixed to land; and
- a cooperative interest, as defined in section 1 of the Real Estate Development Marketing Act, that includes a right of use or occupation of a dwelling.

‣ There are still certain types of properties which are exempt, such as:
- a residential real property that is located on leased land;
- a leasehold interest in residential real property;
- a residential real property that is sold at auction;
- a residential real property that is sold under a court order or the supervision of a court; and
- a purchase and sale of property under the REDMA where section 21 of that Act applies.

This is a lot of information! I am more than happy to explain in depth all the changes in effect that may be pertaining to you!