New year, new rules: Home buyer rescission period and foreign buyer ban

New federal and provincial legislation wnet into effect on January 1 that affect how REALTORS® conduct their business, and who they can conduct business with. 

Here’s a quick summary of what you need to know

The BC Real Estate Association’s (BCREA’s) Standard Forms is updating and revising several existing forms to prepare for the January 1 implementation of the Home Buyer Recission Period (HBRP) in BC. There’ll also be one new form, the Notice of Rescission – Residential Real Property.

The new form, and all the revised ones, will be available on BCREA Standard Forms on January 1. They’ll be accompanied by usage guides and other practical information.

Two new regulations affecting BC’s real estate market went into effect with the start of the new year earlier this week. Here’s the key information you need to know

BC home buyer rescission period

As of January 1, 2023, BC home buyers now have a three-day period in which they can decide to back out of a purchase after signing a contract. If they do, the seller is entitled to 0.25 per cent of the agreed upon sale price of the home as a rescission or “break” fee.

There’s one new form, the Notice of Rescission – Residential Real Property, you'll need to use moving forward. Several other forms, including the Contract of Purchase and Sale (CPS), have been updated and all are available on WEBForms.

Federal foreign buyer ban

The Prohibition on the Purchase of Residential Property by Non-Canadians Act, which prevents non-Canadians from buying residential property in Canada for two years, went into effect January 1.

The federal government recently released the regulations supporting the federal foreign buyer ban, defining what the ban will look like. The Canadian Real Estate Association (CREA) created the Certification and Consent of Purchaser form for you to complete before assisting or advising a potential buyer and use in combination with other due diligence practices. CREA is working to get the form on WEBForms, but you can use the form linked above until it’s there.