The BC government introduced legislation on March 28, 2022, known as Bill 12 – 2022, to allow for the creation of a cooling off period that will allow buyers to back out of a purchase after signing a Contract of Purchase and Sale.
In the official announcement, Minister of Finance Selina Robinson said the government will put the regulation in place for the “Home Buyer Protection Period” by summer.
What we know so far
Robinson provided few details on the new period, saying that the BC Financial Services Authority (BCFSA) will be releasing a report with recommendations in the coming weeks.
The report will inform the development of the regulations, and will include details on:
- The length of the period,
- Financial penalties for buyers who rescind an offer, and
- Regional variations in the legislation to address the differences between local housing markets.
During the media Q&A period after her announcement, the Minister implied that the regional variation provision could be used to provide flexibility if the market changes.
The REALTOR® response
A cooling off period could have unintended consequences. Buyers may make bad faith offers that could tie up sellers, causing undue hardship and potentially preventing sellers from purchasing their next home.
Your Board, along with the BC Real Estate Association (BCREA), has been recommending a pre-offer period where offers can’t be presented to a seller on new listings until the listings have been posted for five business days.
“It would be easier for everyone to get in, do their due diligence, and then just take the offers after,” said Daniel John, REBGV Chair in an interview with CityNews.
Government advocacy
BCREA, with support of BC’s real estate boards, published a white paper on February 28 that contains 30 policy recommendations for the provincial government, including the pre-offer period recommendation.
Your Board is working with BCREA to advocate this approach to MLAs across the province. You can help amplify this message by emailing the Minister of Finance (FIN.Minister@gov.bc.ca) and CC your local MLA using this template.
BCREA also released a response to the announcement, which included a recent poll that found only 35 per cent of British Columbians in favour of the cooling off period.
In the news
Your Board and BCREA have been advocating for the Realtor perspective in the media. We encourage you to share these stories on your social media platforms.
- B.C. realtors: New housing market regulations not enough – CityNews
- Cooling-off period won’t ease B.C.’s real estate affordability crunch, says expert– CTV News
- Only 35 Per Cent of British Columbians Support Government’s Cooling-Off Period According to Recent Polling – Financial Post
© REBGV Real Estate Board of Greater Vancouver 2022