B.C. becomes first province to require 3-day cooling-off period for homebuyers
The Canadian Press • January 17, 2023
British Columbia has become the first province to require a three-day cooling-off period for buyers after they've signed an agreement to purchase a home.
The government said the new homebuyer protection period is designed to give purchasers more time to arrange financing or home inspections after a deal has been accepted — details that were neglected in past sizzling housing markets, it said in a statement.
The extra days would also give buyers more time to consider if the purchase is right for them, amid high-pressure sales or as interest rates climb.
Tsur Somerville, a professor at the University of British Columbia's Sauder School of Business, said the change, which took effect on Tuesday, is targeting a concern that isn't a problem in the current cooler market.
The B.C. Real Estate Association reported 4,512 residential sales in November, a drop of more than 50 per cent from the year before. The average home price in B.C. in December 2021 was $984,000, compared with $904,000 in November 2022.
Somerville said sellers no longer have dozens of buyers willing to give up protections like home inspections to push their bid to the top, the way they did when the plan was unveiled in 2021.
He said having the protection in place is important for the next time the market heats up, but the situation should be monitored for a potential power imbalance that could disadvantage sellers.
"We're going to get back into times when the market is very much a seller's market. These things are cyclical,'' he said.
"So I think it's important to have in place, but I think it's also important to monitor it and see what's going on.''
Trevor Koot, CEO of the B.C. Real Estate Association, said the new rules were not what was needed when they were announced in 2021 and will have no impact in the current market.
"Every transaction now has conditions on it, and home inspections, and appraisals, and we're back to a balanced market where buyers can come in and be rational and be reasonable,'' he said.
Even in a hot market, a three-day wait period is not enough to make a difference, since it takes much longer than that to get access to home inspections and other supports, he added.
In 2021, the association made 34 recommendations to the government, including a five-day mandatory listing period for properties to prevent bully offers.
"Instead of giving the buyer three days after, this gave every party that was interested in a property, including the seller, that five days to be fair and reasonable,'' Koot said.
"And it gave the gift of time to everybody, not just the one side.''
The province says buyers who back out of a sale within the three-day period will be hit with a cancellation fee of $250 for every $100,000 of a home's purchase price, to ensure transactions are taken seriously.
In a statement, Finance Minister Katrine Conroy said the measures will protect buyers and strengthen public confidence in the real estate market.
The government said the new homebuyer protection period is designed to give purchasers more time to arrange financing or home inspections after a deal has been accepted — details that were neglected in past sizzling housing markets, it said in a statement.
The extra days would also give buyers more time to consider if the purchase is right for them, amid high-pressure sales or as interest rates climb.
Tsur Somerville, a professor at the University of British Columbia's Sauder School of Business, said the change, which took effect on Tuesday, is targeting a concern that isn't a problem in the current cooler market.
The B.C. Real Estate Association reported 4,512 residential sales in November, a drop of more than 50 per cent from the year before. The average home price in B.C. in December 2021 was $984,000, compared with $904,000 in November 2022.
Somerville said sellers no longer have dozens of buyers willing to give up protections like home inspections to push their bid to the top, the way they did when the plan was unveiled in 2021.
He said having the protection in place is important for the next time the market heats up, but the situation should be monitored for a potential power imbalance that could disadvantage sellers.
"We're going to get back into times when the market is very much a seller's market. These things are cyclical,'' he said.
"So I think it's important to have in place, but I think it's also important to monitor it and see what's going on.''
Trevor Koot, CEO of the B.C. Real Estate Association, said the new rules were not what was needed when they were announced in 2021 and will have no impact in the current market.
"Every transaction now has conditions on it, and home inspections, and appraisals, and we're back to a balanced market where buyers can come in and be rational and be reasonable,'' he said.
Even in a hot market, a three-day wait period is not enough to make a difference, since it takes much longer than that to get access to home inspections and other supports, he added.
In 2021, the association made 34 recommendations to the government, including a five-day mandatory listing period for properties to prevent bully offers.
"Instead of giving the buyer three days after, this gave every party that was interested in a property, including the seller, that five days to be fair and reasonable,'' Koot said.
"And it gave the gift of time to everybody, not just the one side.''
The province says buyers who back out of a sale within the three-day period will be hit with a cancellation fee of $250 for every $100,000 of a home's purchase price, to ensure transactions are taken seriously.
In a statement, Finance Minister Katrine Conroy said the measures will protect buyers and strengthen public confidence in the real estate market.
Win beautiful original artwork while supporting local music and art! Featuring paintings by Janice Robertson , Richard McDiarmid , and Susan J. Falk — valued between $1,500 – $2,500 . ποΈ Tickets: 1 for $20 | 3 for $50 | 7 for $100 π
Draw: Nov 16 | Fort Langley Community Hall π Get your tickets & details here
A roundup of Halloween displays as well as events during the scary season: Here are the local haunts that are all dolled up for Halloween and a list of the activities around the community. π More Details Here
Brandy is a 2-year-old German Shepherd mix with a serious love for belly rubs, fetch, and being your constant shadow. She’s sweet, affectionate, and always ready to flop over for tummy time! This big, bouncy girl handles beautifully and is incredibly people-oriented—so much so that being left alone makes her sad. She will not hesitate to vocalize when she feels lonely or may try to find an escape route to get to her people. Because of this, she’d thrive in a home where someone is around most of the time to shower her with attention and keep her company. Brandy is easily excitable and can be jumpy when making new friends with people, so she’s best suited to a home without kids. She knows “sit” and “drop it,” has a cute little auto-sit when she wants something, and will gently place her toys at your feet for fetch (which she LOVES and doesn’t destroy—bonus!). Brandy also insists on being the one and only furry royalty in your life. She doesn’t want to share her humans, her home, or her toys—so no other pets, please! She’s ready to rule her kingdom solo as the Queen Bee she knows she is. If you’ve got a secure yard, a good throwing arm, and room in your heart for a one-dog show, Brandy just might be your perfect match. Check out LAPS here for more adoptables .
