For Buyers

The Home Buyer Rescission Period (HBRP)

Buying a home is one of the largest decisions. Sometimes a little extra time is needed to make sure you made the right choice. Here’s what you need to know about the Home Buyer Rescission Period.

3 Days to Reconsider

As of January 3, 2023, when a Seller accepts your offer to purchase a home, you’ll have three business days to cancel the contract. This is called the “right of rescission.”

Notify in Writing

If you change your mind and choose to excerise your right of rescission, you’ll need to notify the Seller – your real estate licensee can help you with this.

Pay 0.25% Fee to Seller

You’ll need to pay a 0.25% fee to the seller. If you made a deposit, this fee will be deducted from the deposit and the balance, if any, must be returned to you. For example, this would be $2,500 for a $1,000,000 property.

Any Questions?

Speak with your Pospischil Realty Group Licensee for any questions you might have about the Home Buyer Rescission Period and how it might impact you.

General property transfer tax

The general property transfer tax applies for all taxable transactions. The general property transfer tax rate is:

  • 1% of the fair market value up to and including $200,000
  • 2% of the fair market value greater than $200,000 and up to and including $2,000,000
  • 3% of the fair market value greater than $2,000,000

Further 2% on residential property over $3,000,000

If the property has residential property worth over $3,000,000, a further 2% tax will be applied to the residential property value greater than $3,000,000.

If the property is mixed class (such as residential and commercial), you pay the further 2% tax on only the residential portion of the property.

If the property includes land classed as farm only because it is used for an owner’s or farmer’s dwelling, up to 0.5 hectares will be treated as residential property.

Budget 2023 introduced an exemption from the further 2% tax for new qualifying purpose-built rental buildings on the amount of the residential property value that exceeds $3,000,000.

Additional property transfer tax

If you’re a foreign national, foreign corporation or taxable trustee, you must also pay the additional property transfer tax on the fair market value of the residential portion of the property if the property is within a specified area of B.C.