Homebuyer protection period for inspection, financing coming to B.C.
British Columbians will be able to take advantage of a new homebuyer protection period aimed at protecting people from being pressured into high-risk sales.
The mandatory three-day period will give homebuyers the opportunity to take important steps such as securing financing or arranging home inspections.
“We’ve heard far too many stories of people feeling the pressure to submit ‘no conditions’ offers,” Finance Minister Selina Robinson told a news conference.
“This change means people will have a non-wavable homebuyer protection period after every offer is accepted.”
Buyers can still make offers conditional on home inspections or financing, though this protection period will offer purchasers the opportunity to do their due diligence at times when conditions are not in place.
The homebuyer protection period will come into effect on January 1, 2023.
The new regulation also includes a cancellation fee of 0.25 per cent of the purchase price, or $250 for every $100,000, for those who back out of a deal.
The minister said the new rules will be monitored by the province to ensure they are working as intended.
“Certainly making sure that people have the time that they need to do their due diligence, to make sure they have the financing that they need, and we’ll certainly hear from consumers about how it’s working. We’ll hear from all components of the various parts of the market, from home inspectors to realtors as well,” said Robinson.
Robinson said if people are saying they have the time they need to get a home inspection and to secure financing, then they will know they’ve done the right thing.
“And based on what we’ve heard [from homebuyers], they just need a little bit of time to make sure all their ducks are in a row. It’s what they’ve been asking for, and it’s what we’re delivering here for the people of British Columbia.”
The homebuyer protection period, which is the first of its kind in Canada, is based on recommendations from the B.C. Financial Services Authority’s (BCFSA) report on ways to offer homebuyers better consumer protection in the real estate market.