After a few years of an incredibly hot real estate market across British Columbia, the province has announced a new homebuyer consumer protection period.
A mandatory three-day period will give homebuyers an opportunity to take important steps, such as securing financing and arranging home inspections, before they make one of their biggest financial decisions.
Officials said the three-day period begins the first business day following the acceptance of an initial offer.
Previously, due to a large number of homebuyers competing for a small amount of inventory, many were skipping home inspections to entice home sellers into choosing their offers.
“Too many people have been faced with giving up an inspection in order to buy a home,” Selina Robinson, B.C.’s minister of finance, said.
“This is a major step toward providing homebuyers with the peace of mind they deserve while protecting the interests of people selling their homes — for today’s market and in the future.”
Home inspections have been an issue for buyers the past couple of years, with many choosing to forgo them amid bidding wars with other potential purchasers.
“Home inspections help to eliminate some of the potential costly risks involved in purchasing while helping to make an informed decision,” said Jonathan Sheppard, Home Inspectors Association BC’s president.
“Home Inspectors Association BC members are proud that the B.C. government has recognized these risks and again leads the country in consumer protection.”
The new homebuyer protection period comes into effect in 2023 and will also include a new rescission — or cancellation — fee of 0.25 per cent of the purchase price.
If a homebuyer chooses to back out of a deal, they would owe the seller $250 for every $100,000 in the agreed price of the home.
This is the first action the B.C. government has taken based on the 2022 B.C. Financial Services Authority’s report on B.C. homebuyers, and is the first of its kind in Canada.
Buyers can still make offers conditional on home inspections or financing at any time, according to the government.