British Columbia introduced the Home Buyer Rescission Period (HBRP) on January 3, 2023, giving residential buyers a statutory 3-business-day window to back out of an accepted offer. The law was a direct response to the pandemic-era housing market, where buyers were routinely pressured to waive all subjects (conditions) to compete in multiple-offer situations — sometimes committing to the largest purchase of their lives with zero protection. Here is how the rescission period works and what it means for buyers and sellers.
How the Rescission Period Works
| Feature | Details |
|---|---|
| Length | 3 business days after the contract becomes binding (offer accepted) |
| When it starts | The day after the buyer receives a copy of the accepted contract from their agent |
| Business days | Excludes Saturdays, Sundays, and BC statutory holidays |
| Reason required | None — the buyer can rescind for any reason |
| Rescission fee | 0.25% of the purchase price, paid to the seller |
| Deposit | Returned in full if the buyer rescinds (only the 0.25% fee applies) |
| How to rescind | Buyer (or buyer’s agent) delivers a written rescission notice to the seller or seller’s agent within the 3-day window |
| After 3 days | Rescission right expires. Contract proceeds normally, subject to any remaining subjects/conditions |
Rescission Fee Calculator
| Purchase Price | 0.25% Fee |
|---|---|
| $400,000 | $1,000 |
| $500,000 | $1,250 |
| $600,000 | $1,500 |
| $750,000 | $1,875 |
| $800,000 | $2,000 |
| $1,000,000 | $2,500 |
| $1,250,000 | $3,125 |
| $1,500,000 | $3,750 |
| $2,000,000 | $5,000 |
When the Rescission Period Applies
| Applies To | Does Not Apply To |
|---|---|
| Residential property purchases (detached, townhouse, condo, duplex) | New construction sold by a developer (covered by REDMA rescission rights) |
| Resale properties | Auction sales |
| Strata (condo) resale properties | Court-ordered sales |
| Properties purchased by individuals | Foreclosure sales (judicial) |
| Properties with or without subjects | Sales to the Crown (government) |
| — | Assignment of pre-sale contracts |
| — | Properties with 7+ strata lots sold by the same seller in a single transaction |
Timeline Example
| Day | Event |
|---|---|
| Monday | Buyer’s offer is accepted. Buyer’s agent delivers a copy of the accepted contract to the buyer |
| Tuesday | Day 1 of rescission period begins |
| Wednesday | Day 2 |
| Thursday | Day 3 — last day to rescind. Written rescission notice must be delivered by 11:59 PM |
| Friday | Rescission period has expired. Contract is fully binding (subject to any remaining subjects/conditions) |
If a Holiday Falls Within the Period
| Day | Event |
|---|---|
| Friday | Offer accepted. Copy delivered to buyer |
| Saturday | Not a business day — does not count |
| Sunday | Not a business day — does not count |
| Monday (statutory holiday) | Not a business day — does not count |
| Tuesday | Day 1 |
| Wednesday | Day 2 |
| Thursday | Day 3 — last day to rescind |
Why BC Introduced This Law
| Problem | How the HBRP Addresses It |
|---|---|
| Buyers pressured to waive all subjects | Provides a safety net — even if you waive subjects, you still have 3 days to reconsider |
| Bidding wars forced rushed decisions | Gives buyers time to arrange an inspection, review financing, or simply reflect |
| No protection for subject-free offers | Previously, a firm offer with no subjects was immediately binding — no exit without legal consequences |
| Emotional purchasing decisions | A mandatory cool-down period counteracts impulsive decisions made in the heat of competition |
| Power imbalance between sellers and buyers | Levels the playing field slightly by giving every buyer a window to reconsider |
Impact on Buyers
Benefits
| Benefit | How It Helps |
|---|---|
| Safety net | If you discover a serious issue within 3 days (financing doubt, property concern, personal circumstances), you can exit for 0.25% instead of losing your full deposit or facing a lawsuit |
| Time for rapid inspection | You can schedule a quick home inspection within the 3-day window — even if you submitted a subject-free offer |
| Financing confirmation | Confirm with your lender that the specific property is acceptable for your mortgage |
| Reduced pressure | Knowing you have 3 days reduces the panic of making a subject-free offer in a competitive situation |
| Universal right | Cannot be waived or negotiated away — every buyer has this protection equally |
Limitations
| Limitation | Details |
|---|---|
| Fee is not trivial | 0.25% is $2,500 on a $1M purchase — not something to use casually |
| Only 3 business days | Not enough time for a thorough inspection, full underwriting, or detailed legal review — it’s a quick check, not a replacement for subjects |
| Does not replace subjects | Standard subjects (financing, inspection, property disclosure) remain important. The rescission period is a backup, not a substitute |
| Seller uncertainty | Sellers now have 3 days of uncertainty even after accepting an offer — some may price this in or prefer buyers who seem less likely to rescind |
| New builds exempt | If buying from a developer, this law does not apply — separate REDMA rights exist (typically 7 days) |
Impact on Sellers
| Impact | Details |
|---|---|
| 3 days of uncertainty | Accepted offer is not truly firm for 3 business days — seller cannot be certain the deal will close during this period |
| Compensation if rescission | The 0.25% fee partially compensates for the disruption, lost time, and possible missed offers |
| Cannot waive on behalf of buyer | Seller cannot require the buyer to waive the rescission period — any such clause is void |
| Strategy adjustment | Some sellers may consider backup offers during the rescission window; others wait it out |
| Listing timing | A property pulled from the market after accepted offer, then re-listed 3 days later if rescission occurs — may create a stigma or perceived issue with the property |
How It Changes the Offer Process in BC
Before HBRP (Pre-2023)
| Step | How It Worked |
|---|---|
| Subject-free offer | Immediately binding — no exit. Buyer took all the risk |
| Competing offers | Strongest offer was subject-free, highest price, seller’s preferred closing date |
| Buyer protection | Only through subjects (financing, inspection, etc.) — but waiving subjects was necessary to win in competitive markets |
After HBRP (2023+)
| Step | How It Works Now |
|---|---|
| Subject-free offer accepted | 3-day rescission period begins automatically |
| Buyer has 3 business days | Can arrange a quick inspection, confirm financing, or reconsider |
| If buyer rescinds | Pays 0.25% to seller; deposit returned; property returns to market |
| If buyer does not rescind | After 3 days, contract is fully binding (same as before) |
| Offers with subjects | Subjects operate alongside the rescission period. Rescission period expires first (3 days), then subject deadlines apply |
Rescission Period vs. Subjects (Conditions)
In BC, conditions on an offer are called “subjects.” The rescission period operates independently from subjects.
| Feature | Rescission Period | Subjects |
|---|---|---|
| Who sets the terms | BC law (mandatory) | Buyer (negotiated with seller) |
| Duration | 3 business days (fixed) | Varies — typically 5–14 days per subject |
| Can it be waived | No — mandatory | Yes — buyer can waive subjects or offer without them |
| Reason to exit | No reason required | Must relate to the specific subject (financing, inspection, etc.) |
| Cost to exit | 0.25% of purchase price | None (deposit returned if subject not met) |
| When it expires | 3 business days after accepted offer | Per the deadline set in the subject clause |
| Practical overlap | Rescission period runs concurrently with subject periods | Subject periods continue after rescission period expires |
Practical Example
| Day | Event |
|---|---|
| Day 0 | Offer accepted: subject to financing (7 days) + subject to inspection (5 days). Rescission period begins |
| Day 1–3 | Rescission period active. Buyer can rescind for 0.25%. Subjects also active |
| Day 4 | Rescission period expired. Subjects still active |
| Day 5 | Inspection subject deadline — buyer must waive or walk (no cost to walk if inspection unsatisfactory) |
| Day 7 | Financing subject deadline — buyer must waive or walk |
| Day 8+ | All subjects waived — contract is fully firm |
Strategies for Buyers
| Strategy | Details |
|---|---|
| Submit with subjects + use rescission as backup | Best protection: subjects for financing and inspection, plus the 3-day rescission right |
| Submit subject-free + use rescission window | Arrange a rapid inspection within the 3-day window. Not as thorough as a full subject period, but better than no protection |
| Pre-offer inspection | Do the inspection before submitting your offer. Combined with rescission period, you have strong protection even on a subject-free offer |
| Pre-approval lock | Get your mortgage pre-approved and have your lender review the property within the 3-day window |
| Budget for the 0.25% fee | Treat it as an insurance premium — know that walking away will cost this amount, and factor it into your decision-making |
Strategies for Sellers
| Strategy | Details |
|---|---|
| Accept the rescission period as normal | It’s mandatory — build it into your timeline expectations |
| Consider backup offers | If another strong offer comes in during the rescission period, you can hold it as a backup in case the first buyer rescinds |
| Don’t take the property off listing portals immediately | Some sellers wait until the rescission period expires before removing the listing — reduces risk of market disruption if the buyer rescinds |
| Price appropriately | A well-priced property will attract multiple offers — if one buyer rescinds, others may still be interested |