Provincial law · BC · In force since Jan 3, 2023

BC Home Buyer Rescission Period — The 3-Business-Day Cooling Off, Explained

Since January 3, 2023, every accepted residential purchase contract in BC gives the buyer a mandatory 3-business-day right of rescission — a cooling-off period during which the buyer can walk away from the deal with no reason required. The catch: a 0.25% rescission fee is payable to the seller, and the rescission must be exercised in writing within the statutory window.

The Home Buyer Rescission Period (HBRP) was introduced by the BC government through the Property Law Act amendments in 2022 and came into force on January 3, 2023. It is the only cooling-off period of its kind in Canadian real estate. Craig tracks the practical side: which offers actually get rescinded, how brokerages handle the deposit, and how sellers should price in the risk.

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The definition

Short answer: exactly how the 3-business-day window works

Once the seller accepts the buyer's offer in writing, the BC Home Buyer Rescission Period starts. The buyer has until 11:59 PM on the third business day after acceptance to deliver a written rescission notice to the seller. If they do, the deal is dead — and the buyer owes a 0.25% rescission fee, calculated on the purchase price. On a $1.2M home, that fee is $3,000, and it is deducted from the buyer's deposit on the way back.

Official sources

Where the rules live.

Every figure on this page is drawn from primary BC and federal sources listed below. For a live, government-maintained version of each rule, click through — the internet can drift, the official source is always authoritative.

By the numbers

Rescission fee math on common price points

Purchase price0.25% rescission feeTypical depositDeposit returned
$600,000$1,500$30,000$28,500
$900,000$2,250$45,000$42,750
$1,200,000$3,000$60,000$57,000
$1,800,000$4,500$90,000$85,500
$2,500,000$6,250$125,000$118,750
Step by step

What to do inside the 3-business-day window

  1. 1
    Order and complete a home inspection with a licensed inspector. Most Coquitlam inspectors can be booked within 24 hours for a rescission-period inspection.
  2. 2
    Confirm mortgage pre-approval with actual property address — lenders cannot issue a firm commitment without the address, strata documents, and purchase price.
  3. 3
    Review strata documents (for condos/townhomes) — minutes, Form B, engineer reports, depreciation report. If anything triggers a question, your realtor should escalate to a strata lawyer same-day.
  4. 4
    If any red flag emerges, deliver a written rescission notice to the seller's designated contact before 11:59 PM on the third business day. The notice must be in writing and delivered through the contract's notice clause.
  5. 5
    If you complete due diligence and want to proceed, do nothing — the rescission window closes automatically at the end of day 3, and the contract becomes binding.
Craig Johnston, REALTOR® — The Macnabs, Coquitlam
Craig's take
The HBRP is not a free look. You pay 0.25% to walk away — and in a $1.5M market, that's almost $4,000 — so you need to treat those three days as a real deadline to finish inspection, financing, and strata review. Most of my buyers still keep a subject-to-inspection clause on top of the HBRP, because subjects are still the cleaner tool for bigger contingencies like financing.

— Craig Johnston, REALTOR® · Macdonald Realty · Tri-Cities resident 44+ years

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Frequently asked

Everything buyers and sellers ask Craig about this.

When does the BC Home Buyer Rescission Period start?

The rescission period starts on the business day the seller delivers written acceptance of the offer to the buyer. If acceptance is delivered after 5 PM or on a non-business day, the clock starts on the next business day.

What counts as a 'business day' for HBRP?

A business day is any day that is not a Saturday, Sunday, statutory holiday in BC, or Remembrance Day. It is defined in the Home Buyer Rescission Period Regulation.

Can the HBRP be waived?

No. The HBRP applies to every residential offer on resale and most new-construction homes in BC and cannot be waived by buyer or seller. The fee can be waived by mutual agreement but the right itself cannot.

Which homes are exempt from the HBRP?

Residential sales at auction, residential leaseholds on First Nations or Crown land, sales in a court-ordered foreclosure, and sales of recreational land without residences are exempt. Presales under the Real Estate Development Marketing Act (REDMA) are also exempt because REDMA already provides a 7-day rescission right.

How much is the rescission fee?

The rescission fee is 0.25% of the purchase price. On a $1,000,000 home the fee is $2,500. It is deducted from the buyer's deposit on the way back to the buyer.

Does the rescission period replace subject-to clauses?

No. Subject-to clauses (financing, inspection, insurance, strata review) remain the primary due-diligence tool. The HBRP is an additional, non-waivable right that runs in parallel with any subjects.

Can sellers refuse the rescission?

No — it is the buyer's statutory right. The seller's only remedy is keeping the 0.25% rescission fee, which is capped by the regulation.

What if I discover the HBRP is about to expire but my inspection isn't complete?

You have two options: exercise the rescission to kill the deal (and pay 0.25%), or keep the contract alive via the subject-to-inspection clause if one was written in. The HBRP and subject clauses are independent protections.

Does the HBRP apply to commercial real estate?

No. The HBRP applies only to residential property. Commercial and industrial sales are governed by standard contract law with no statutory cooling-off period.

How do I properly deliver a rescission notice?

In writing, through the contract's notice clause (usually email or fax to the listing brokerage and seller's lawyer), and postmarked before 11:59 PM on the third business day. Most buyer's agents use a BCREA standard rescission form to make the notice unambiguous.

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Craig Johnston, REALTOR® — The Macnabs
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Craig Johnston · The Macnabs

BCFSA-licensed REALTOR® (V99960). 44+ years Tri-Cities. Top 2% Nationwide Team. Specialist in Coquitlam, Port Moody, and Port Coquitlam transactions across resale, new construction, and strata. The same rules above apply on every single deal — the difference is having someone who's done them hundreds of times in your corner.

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