Buyers' second thoughts

Tracy Head • January 3, 2023

New B.C. law allows home buyers to back out of sales


What exactly is the Home Buyer Rescission Period (HBRP)?


For months now, we’ve been hearing about a proposed cooling off period for home purchases. This is it.

Qualifying what is to follow with the fact I am not a realtor and that is not my area of expertise, I want to share a few important pieces I’m learning and how they may affect you, as a buyer or a seller.


Please do your homework and confirm with your realtor what your rights are with respect to rescinding any offers you are considering collapsing.


On Jan. 3, legislation comes into effect in B.C. that will allow purchasers a brief window of time to back out of a purchase contract for residential real estate. This timeframe is up to three clear business days (business days do not include weekends or statutory holidays) after an offer is accepted.


Opting out doesn’t require a reason, but it does come at a price. Should you choose to exercise your right to rescind a contract, you must pay the seller 0.25% of the purchase price.


As an example, if you were to rescind a contract on a $750,000 home, you would be obligated to pay the seller $1,875.

If an offer is collapsed, the rescission fee is payable to the seller. If there is already a deposit held in trust with a lawyer or notary, the fee will be deducted and paid to the seller before the deposit is returned to the buyer.


Realtors must provide information to their clients about the HBRP by way of a specific form that needs to be included in their contracts.


There are several key points to note:


  • The HBRP cannot be waived, even by mutual agreement.
  • There are exemptions to this legislation, including, but not limited to:
  • Sales by way of foreclosure
  • Pre-build sales
  • Sales on leasehold land
  • Sales by auction or assignment
  • The legislation also applies to private sales.
  • There are specific steps that must be followed if you are choosing to rescind an offer.


More information can be found at the B.C. Financial Services Authority FAQ website's Home Buyer Rescission Period Frequently Asked Questions.


So what does this mean in practice?


It will be interesting to see how many times we see this provision in action. I feel a little like it is closing the barn door about a year too late, but hopefully this will discourage some of the panic buying we’ve seen over the last few years.

I do feel for realtors who will be working their way through this.


Most of the offers I see have the deposit being made by buyers once they have removed all their conditions and gone firm on their purchase. Will this mean that buyers will have to make deposits at the same time their offer is accepted? Will realtors have to chase down the funds payable to the seller if a buyer backs out?


Some of the offers have come across my desk in the last two years have concerned me, more so the knowledge some clients felt forced to write subject-free offers just to have their offers considered. I imagine this new legislation will change that market dynamic.


Again, I am not a realtor ,so if you are actively buying or selling please make sure you talk to your realtor to see how this legislation may affect you.


On to a new and exciting 2023. I hope you and yours stayed safe and warm. Happy New Year.

Tracy Head

Mortgage Broker

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Purchase Checklist

By Tracy Head • August 11, 2025
Last week was a vivid reminder of the importance of finalizing your home insurance as soon as you are within thirty days of your closing date on a home purchase. I had three clients with purchases closing on the Friday after the fire broke out in Peachland. All three had to push their closing dates back because they couldn’t get their insurance in place due to an active fire. Thinking about this led me to consider a few of the key steps involved when purchasing a home. I’ve written about this in prior columns but I feel a reminder is never a bad idea. There are a few areas of crossover between the guidance your realtor gives you and the advice you receive from your mortgage person. When your realtor writes your purchase contract there are some standard conditions that are added to the agreement. You will generally see the following: Subject to the purchaser obtaining satisfactory mortgage financing Subject to the purchaser having a home inspection conducted Subject to the purchaser arranging home insurance Subject to review of strata documents if applicable Subject to the sale of the purchasers’ current home if applicable The financing end is obviously our responsibility. I do double-check with my clients that they have taken care of the other conditions. Most realtors are great at offering support to their clients with respect to addressing the relevant conditions. In some cases I feel like realtors tell clients the steps they need to take but my guess is that the whole process can feel or become overwhelming. Before I give my clients the ok to remove their financing subject I confirm that they have taken care of the home insurance as this is one piece they sometimes miss.  If you are going through the process of purchasing a home my suggestion is keep a notebook (aging myself by suggesting a paper version) or a list on your phone to keep track of your must-do tasks as you go through the process. I have a checklist that I’m happy to share if you would like a copy.

What does your mortgage broker bring to the table

By Tracy Head • August 2, 2025
What does your mortgage broker bring to the table? I love what I do. Every day I learn something new. I meet amazing people. Each day is different and knowing that what I do is important is good for my soul. I had someone call the other day to ask some questions about a pre-approval and he finished up the call with a genuine question. Why would he want to work with a mortgage broker instead of his bank? There are many ways to answer that question. This isn’t intended to be a sales job about working with me but rather with mortgage professionals in general. Before you read any further understand that working with your bank may be the easiest solution for you. There are some amazing employees within the branch system so this is not intended in any way to make light of the work they do. As licensed professionals we work with mortgages every day. Most of us seem to live and breathe mortgages all the time including evenings and weekends. For many of us our families are annoyed by the constant distraction of our work. Boundaries are important of course and some brokers work a strict schedule. Many of us do make ourselves available evenings and weekends to help our clients because not everyone has the flexibility in their workday to deal with their mortgage. We work for you rather than one specific lender or financial institution so are looking for options that fit your situation rather than making your mortgage fit within one product. One of the most important differences between working with your bank and working with a mortgage professional is options. Not every client fits a cookie cutter approach. There are some situations where clients’ income doesn’t support their application in the traditional lending world. Sometimes clients have credit challenges. Sometimes clients are looking at a unique property. Mortgage professionals have access to a wide range of lenders, some of whom offer specialty products not available at your bank. Product knowledge and expertise can be another difference. As an example I work with many clients who are self-employed. There are mortgages specifically geared for self-employed clients that are available at banks as well but often the employees are unaware of these options.  For me, the relationship I build with my clients is the main differentiator about why I say clients should work with a mortgage professional rather than their bank. I take the time to get to know my clients and their situations and longer-term goals. I will still be here when their mortgage comes up for renewal and am able to answer questions in the meantime. I’ve had many clients comment over the years how much they appreciate the personal approach rather than feeling like a number at their bank - having to start from scratch with someone new each time they need help.