Province’s plan for Homebuyer Protection Period misses mark: realtors

A group that represents realtors in the B.C. Interior is not sold on the province’s plan to protect homebuyers.

The government has announced regulations that will allow for a mandatory three-day Homebuyer Protection Period (HPP), previously called a “cooling off period,” to take effect on January 1, 2023.

The HPP will allow potential buyers three days to back out of a real estate transaction. A cancellation fee of 0.25 per cent of the purchase price of the home will be paid to the seller if the buyer rescinds their offer during the period.

The Association of Interior Realtors says while it supports consumer protection measures in real estate, it does not think the HPP will be an effective measure, especially now that market conditions have come back to balance.

“Ultimately, this type of measure is intended to protect buyers who feel the need to put in unconditional offers or are in multiple offer situations, both of which have become much less common in today’s market in the Interior and across the province,” a news release from the association stated.

Lyndi Cruikshank, association president, says the policy severely misses the mark.

“Instead of protecting all consumers, this policy favours buyers and may now put sellers in a compromising position. If the government was really concerned about protecting consumers, then they should include policies that protect both sellers and buyers equally,” Cruikshank remarked.

Cruikshank accuses the Ministry of Finance of ignoring recommendations made by real estate groups in favour of “cherry-picking” one policy recommendation.

“Ultimately, these regulations will be inconsequential and fail to improve consumer protection. Which is a real shame because consumers in the interior and across the province really deserve better,” said Cruickshank.