Since January 3, 2023, most home buyers in British Columbia have had a short window to change their mind after their offer is accepted. It’s called the Home Buyer Rescission Period, or the “cooling-off period”. Here’s exactly how it works, from the law and from BCFSA, the province’s real estate regulator.
The rule in one paragraph
After a seller accepts your offer on a home, you can cancel (rescind) the contract within three business days, for any reason, by giving the seller written notice and paying a fee of 0.25% of the purchase price. Only buyers have this right, and it can’t be waived by either side.
How the three days are counted
The period starts the day after the offer’s acceptance is signed. Business days are Monday to Friday, excluding holidays as defined in BC’s Interpretation Act, a list that isn’t the same as the statutory holidays used for employment. BCFSA’s example: if an offer is accepted on a Monday, the period ends at 11:59:59 p.m. on Thursday, as long as no holiday falls in between. A holiday that lands on a weekend doesn’t add an extra day.
What it costs
The rescission fee is 0.25% of the purchase price: $5,000 on a $2,000,000 home, for example. It’s fixed by regulation; the buyer and seller can’t agree to a higher or lower amount. If a brokerage is holding your deposit, the fee is paid to the seller from it and the rest returns to you, without the release form a deposit normally needs.
How to rescind
The notice must be in writing and include:
- the property’s address, parcel identifier (PID) or description;
- the name and signature (or electronic signature) of the buyer rescinding;
- the name of each seller on the contract; and
- the date the right is being exercised.
The regulation treats the notice as served when it’s sent to the seller’s address, fax number or email address set out in the contract: by registered mail, by fax, or by email with a read receipt requested. You don’t have to give a reason.
Which homes it covers
It applies to residential property: detached and semi-detached houses, townhouses, apartments in a duplex or other multi-unit building, residential strata lots, manufactured homes affixed to land, and certain co-operative interests. It applies whether or not a real estate licensee is involved.
It doesn’t apply to:
- homes on leased land, or leasehold interests;
- homes sold at auction;
- homes sold under a court order or court supervision;
- commercial property; and
- generally, vacant lots (although some bare-land strata lots can be covered).
Presales of new developments have their own, separate rescission rules under the Real Estate Development Marketing Act. The right also doesn’t apply to the assignment of a contract.
How it fits with subjects
The rescission period runs from acceptance, whether your offer has subjects or not, and alongside any subject deadlines. It’s entirely separate from your subjects: a subject-free offer still carries the three-day right. How subject removal works
For sellers
You’ll receive a disclosure of the buyer’s rescission right with every offer, on BCFSA’s form or in the standard contract. If a buyer rescinds and no brokerage is holding a deposit, BCFSA suggests getting legal advice on recovering the fee. The buyer also has no automatic right to access the home during the three days, unless the contract provides for it.
Questions people ask
Can a seller rescind?
No. The right belongs to buyers only.
Can we agree to waive it to make my offer stronger?
No. It’s guaranteed by the Property Law Act and can’t be waived; an agreement to waive it would be contrary to the legislation.
Does it apply to a backup offer?
Yes, and the three days start when the backup offer is accepted, not when the first contract collapses.
General information for buyers and sellers in British Columbia, current as of publication. It isn’t legal advice: your contract and your lawyer or notary have the final word.