The Home Buyer Rescission Period ("cooling-off period")

The home buyer rescission period, also known as the "cooling-off period," refers to a legally mandated period of time during which a home buyer can change their mind and cancel a real estate transaction. During this period, the buyer has the right to rescind and pay a penalty of 0.25% of the purchase price.

• Starting January 3, 2023
• Buyer must exercise their rescission right within 3 clear business days.
• Buyers who exercise their right to rescind will have to pay a fee of 0.25% of the purchase price. For a $1,000,000 home, this would result in a $2,500 fee paid to the seller. 
• If a deposit is held in trust, brokerages must release the rescission fee to the seller upon rescission. The balance, if any, is returned to the buyer, despite what may be provided in the contract.

Click here to watch this informative video by the BCREA: A Consumer's Guide to Understanding the Home Buyer Rescission Period.