Home Buyer Rescission Period (HBRP)

The Home Buyer Rescission Period (HBRP) is a statutory right established under Section 42 of the Property Law Act (BC), effective January 3, 2023, that gives a residential buyer three business days to rescind an accepted offer to purchase an eligible property. The three-day period excludes weekends and BC statutory holidays. This right exists automatically by law and cannot be waived by either the buyer or the seller.

If a buyer exercises the HBRP and rescinds an accepted offer, they must pay a rescission fee equal to 0.25% of the purchase price to the seller. For example, on a $800,000 purchase, the rescission fee would be $2,000. This fee is payable to the seller and is intended to partially compensate them for the inconvenience caused by the rescission.

The HBRP applies to eligible residential real property in British Columbia, including detached homes, semi-detached homes, townhouses, and residential strata lots governed under the Strata Property Act (SBC 1998, c. 43). The period does not apply to presale strata units sold by a developer under the Real Estate Development Marketing Act (REDMA), which already has its own separate seven-day rescission right, nor does it apply to properties sold at auction or under a court order.

No. The HBRP cannot be waived, contracted out of, or otherwise eliminated by agreement between the buyer and seller under Section 42 of the Property Law Act (BC). Any term in a contract that purports to waive the HBRP is of no legal effect. This distinguishes it from many other contractual rights that parties may modify by mutual agreement.

To exercise the HBRP, the buyer must deliver a written notice of rescission to the seller or the seller's representative within the three-business-day period following the day the offer is accepted, as set out under the Property Law Act (BC) and the associated Home Buyer Rescission Period Regulation. Licensees representing buyers have obligations under the Real Estate Services Act (RESA) and BCFSA guidance to ensure buyers are informed of this right and understand the process for exercising it.

No. The HBRP under Section 42 of the Property Law Act (BC) is a separate and distinct right from the seven-day rescission period that applies to presale residential strata units under the Real Estate Development Marketing Act (REDMA). The REDMA rescission right applies when a buyer purchases a unit from a developer before construction is complete, and it carries no rescission fee, whereas the HBRP applies to resale residential properties and requires payment of the 0.25% rescission fee if exercised.

If a buyer rescinds under the HBRP and the transaction does not complete, no property transfer is registered and therefore no Property Transfer Tax (PTT) becomes payable under the BC Property Transfer Tax Act, as PTT is triggered at registration of a transfer at the Land Title Office. If a buyer who initially intended to claim an exemption — such as the First-Time Home Buyers' Program (full exemption on eligible properties up to $835,000) or the Newly Built Home Exemption (up to $1,100,000) — rescinds the offer, that exemption claim would simply not apply since no transfer occurs.

BC real estate licensees are regulated by the British Columbia Financial Services Authority (BCFSA) under the Real Estate Services Act (RESA) and its Rules, which require licensees to act in their client's best interests and ensure clients are informed of material rights affecting a transaction. A licensee acting for a buyer must explain the HBRP, including the rescission period, the applicable fee, and the process for exercising the right, as part of their duty to provide competent and informed service. Failure to adequately inform a client of the HBRP could constitute a breach of professional conduct under RESA.

The three-business-day HBRP period begins the day after the offer is accepted by the seller, and business days exclude Saturdays, Sundays, and BC statutory holidays as defined under the Property Law Act (BC) and its associated Regulation. For example, if an offer is accepted on a Thursday, and Friday is a non-statutory business day, day one would be Friday; if a statutory holiday falls within the count, that day is skipped. Buyers and their licensees should carefully track the exact end of the rescission period to ensure any notice of rescission is delivered in time.

The HBRP under Section 42 of the Property Law Act (BC) applies based on the residential classification of the property, not solely its zoning or ALR status; a residential property that happens to be within the Agricultural Land Reserve — administered by the Agricultural Land Commission under the Agricultural Land Commission Act (SBC 2002, c. 36) — would still be subject to the HBRP if it meets the eligible residential property criteria under the Regulation. However, buyers of ALR properties should also seek guidance from the ALC regarding any applicable use restrictions, as those are governed separately under the Agricultural Land Commission Act and are unrelated to the HBRP mechanism.