When selling your home in British Columbia, the three-day rescission affects sellers in many ways. Starting from January 2023, all homebuyers in BC will be able to change their minds even after making a cash offer with no conditions.
The homebuyer rescission period of three days allows buyers to walk away from a firm offer. All a buyer has to do is give notice and pay a fee of 0.25%. The legislation was created to provide buyers with a level playing field, but it introduces a significant change for sellers. The days of accepting an offer and immediately posting a sold sign are over. As a home seller, you must wait for the buyer to pass the rescission period. If you have multiple offers to consider, evaluating which buyer is more likely to pass the three-day rescission period without any issues is crucial. Additionally, if an offer collapses, you may be able to collect the rescission fee. However, if an offer comes in without a deposit, it’s essential to consider how the buyer will pay the rescission fee.
The three-day rescission policy also affects sellers in another way. The homebuyer’s rescission period starts from the business day after you accept an offer. You should calculate the three days as a seller when considering an offer. For instance, if you accept an offer on Friday of a long weekend, the rescission period does not begin until Tuesday. In this case, the required three business days become six calendar days.
The three-day rescission policy significantly changes how homes are sold in BC. It adds a layer of complexity to the selling process but provides a much-needed level of security for homebuyers.
