New rules for the real estate market in Vancouver BC have been introduced as of January 1st. The Home Buyer Rescission Period (HBRP), also known as the “cooling-off period,” has been implemented as a consumer protection measure to give home buyers time to consider whether a purchase is right for them. Under the HBRP, buyers have the right to rescind their offer up to three business days after it is accepted. If a buyer decides to change their mind, they must pay a 0.25% rescission fee to the seller.
In addition, the Canadian government has released regulations regarding the foreign buyer ban that is in effect now. The Prohibition on the Purchase of Residential Property by Non-Canadians Act prohibits non-Canadians from buying residential property in Canada for a two-year period. Non-Canadians are defined as individuals who are not Canadian citizens, permanent residents of Canada, or persons registered under the Indian Act, as well as privately held Canadian corporations not listed on a stock exchange in Canada and controlled by non-Canadians. The act defines residential property as buildings with three homes or fewer, as well as parts of buildings such as semi-detached houses or condominium units. However, the law does not prohibit the purchase of larger buildings with multiple units. Violations of the act carry a $10,000 fine for non-Canadians or anyone who knowingly assists a non-Canadian in violating the act. If a court determines that a non-Canadian has violated the act, they may order the sale of the property.
If you are interested in buying or selling a home, it’s important to understand the current market and the details of the new act. Please reach out with any information you’d like or questions that you have as I’m always happy to help!