Homebuyers will have peace of mind with the upcoming Homebuyer Protection Period (HPP)!
Buying a home is one of the most important financial decisions one will make in their life. To support and provide time to make good financial decisions, the BC government announced a mandatory 3-day Homebuyer Protection Period (HPP) starting in January 2023!
The HPP also know as the “cooling off period” implies to subject free offers and is in effect after an offer is accepted. This gives buyers the opportunity to secure financing, get home inspections, insurance and seek legal advice.
Buyers will still be able to make offers conditional on home inspections or financing at any time. The protection period offers homebuyers the opportunity for due diligence when conditions are not in place.
There will be a penalty of 0.25% of the purchase price for those who choose to back out of a deal. For instance, this means that on a $1 Million home, a homebuyer will be required to pay $2,500 penalty cancelling the deal.
If you have additional questions, feel free to reach out to us!
Resources:
https://dailyhive.com/vancouver/bc-home-sales-three-day-cooling-off-period-policy-mandatory
https://www.cbc.ca/news/canada/british-columbia/bc-real-estate-colling-period-1.6527837