The BC Government announced a Homebuyer Protection Period (HPP), also known as a “cooling off period,” to take effect on January 1, 2023. Here are the details:
This protection period ONLY applies to offers that are unconditional – offers that do not have clauses/subjects such as subject to financing and subject to inspection. If you have an accepted offer on a home that has these subjects, this protection period does not apply!
So how does this protection period work?
Once you have an unconditional or subject free accepted offer on a home, you will have a mandatory 3 business days of protected time to complete your due diligence - like securing financing and getting a home inspection. If you are satisfied, then you can go ahead with the purchase.
Now for some reason if you decide this is not the right home for you, then there is a back out fee. Its 0.25% of the purchase price which is $250 for every $100,000 of the purchase price.
So for a $1,000,000 purchase, the back out fee will be $2,500.
Ultimately this is a tool that allows buyers to complete their due diligence in an unconditional/subject free offer situation.
If you have any questions, please feel free to give us a call!
PJ @ 604-725-1258 | Razaik @ 604-537-8447
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