Home Buyer Rescission Period Starts Today (Jan 3rd)

Jan. 3, 2023 | Market Update | By The Rossetti Team

Home Buyer Rescission Period starts today - January 3rd, 2023.

The Home Buyer Rescission Period (HBRP), also known as “cooling-off period," under section 42 of the Property Law Act gives buyers the right to withdraw from a purchase agreement within a specified period of time after an offer is accepted. The prescribed number of days is 3 business days not including Saturdays, Sundays and holidays.  The three business days begin the date after final acceptance by a seller and buyer.

Where the Home Buyer Rescission Period applies, the rescission amount is 0.25% of the purchase price for the residential real property that is set out in the contract. 

Does the Home Buyer Rescission Period apply? 

It applies if the property is:

  • a detached house,
  • a semi-detached house,
  • a townhouse,
  • an apartment in a duplex or other multi-unit dwelling,
  • a residential strata lot as defined in section 1(1) of the Strata Property Act,
  • a manufactured home affixed to land, or
  • a cooperative interest, as defined in section 1 of the Real Estate Development Marketing Act, which includes the right of use or occupation of the dwelling.

The Home Buyer Rescission Period does not apply to exempt properties as follows: 

  • residential real estate property that is located on leased land,
  • leasehold interest in residential real estate property,
  • residential real estate property that is sold at auction, and
  • residential real estate property that is sold under a court order or the supervision of a court.

Regulation >> 

Disclosure of Buyers Right of Recission Form >>

Questions? Contact Us.