Homebuyers protection takes effect in B.C.

British Columbians have more protection in the real estate market, as of today.

The homebuyer protection period that creates a mandatory three-business-day period to give people more time to secure financing or arrange home inspections took effect Tuesday, Jan. 3.

The period was a key action identified in the B.C. Financial Services Authority’s report on improving consumer protection in the real estate market. Its intent is to help buyers fully consider if the purchase is right under any market conditions, including during rising interest rates and in high-pressure sales scenarios.

“Housing remains a top concern for people in B.C. and a top priority for this government,” Katrine Conroy, minister of finance, said.

“Buying a home is one of the biggest decisions of people’s lives. This is an important milestone as we lead the way in protecting people and strengthening public confidence in the real estate market,” she said.

The protection period includes a rescission, or cancellation fee of 0.25 per cent of the purchase price, or $250 for every $100,000, for those who cancel contracts. This is intended to ensure all parties are taking the transaction seriously.

“Consumer protection is core to what BCFSA does,” Blair Morrison, CEO of BCFSA and superintendent of real estate, said.

“We’ve worked extensively with real estate licensees to get them ready for the introduction of this new protection in B.C. in 2023. We urge consumers with questions about the [homebuyer protection period] to speak directly to their real estate licensee.”

B.C. has become the first Canadian province to implement a homebuyer protection period.