The unprecedented activity during and post COVID in the 2021 and 2022 markets prompted home buyers to compete for homes, making multiple offers and bidding wars commonplace. Some buyers faced 5-10 (or more) competitors with properties selling often 10% over list price, almost always with contracts lacking any conditions such as financing or building inspection. This meant buyers not only paid maximum dollar for the property but also prevented them from conducting due diligence which is a common practice in normal markets.
Buyer remorse is a human trait, especially when a consumer spends over a million dollars in a matter of hours- for a house they only viewed for 15 minutes.
As a result, the Province of BC implemented the Home Buyer Rescission Period in 2023. This is a regulatory requirement which cannot be waived by parties in the transaction. It enables a buyer to change their mind within 3 business days of acceptance of their contract. If the buyer executes the rescission, a fee of 0.25% of the purchase price is paid to the seller.
The Rescission is rarely executed based on our informal polls. But for buyers, it’s added protection in a high pressure environment.
Call us if a move is in your future.