What you need to know when buying and selling real estate on the sunshine coast
Posted on Jan 18, 2023 in
THE HOME BUYER RESCISSION PERIOD
On January 3rd, the new HBRP (Home Buyers Rescission Period) came into effect. That is great, Tara, but what the heck does it mean? In a nutshell, on most properties that have what is considered a dwelling (a place we would call a home), a buyer can write an offer and has three days (business days) to change their mind with absolutely no reason required; however, they do have to pay a penalty which goes directly to the seller.
The new rule applies to most properties considered a dwelling, but a few exemptions apply.
Here are the properties, by type, that will be affected by the new rule:
detached house
semi-detached house
townhouse
apartment in a duplex or other multi-unit dwelling
manufactured home affixed to land
residential strata lot
A cooperative interest, as defined in Section 1 of the Real Estate Development Marketing Act, includes a right of use or occupation of a dwelling.
Where it will not apply:
residential property located on leased land
leasehold interest in residential property
property sold at auction
property sold under a court order or supervision of a court
assignment contracts
does not apply to any purchase and sale of property under the Real Estate Development and Marketing Act (“REDMA”), where Section 21 applies.
Once a buyer and seller have an accepted offer, the rescission period will begin. The buyer will have three full business days after acceptance to rescind. The rescission cannot be waived by either party, even if both parties mutually agree. Once both parties accept an offer, the rescission period starts, and if the buyer chooses to rescind, a 0.25% penalty will be payable to the seller.
If you are buying or selling and want to know more about the process, get in touch, I am happy to guide you through the process!
