Home Buyer Rescission Period in Vancouver Real Estate

What the new rules mean for you

The Home Buyer Rescission Period, often called the “cooling‑off period,” is now part of buying residential property in British Columbia, including Vancouver and Greater Vancouver.

The goal is simple: give buyers a short window of time to step back and reconsider their decision in a market that has recently seen intense bidding wars, fast offers, and unconditional contracts.

As a buyer or seller of Vancouver condos, townhomes, or detached houses, you need to understand how this rule works and how it affects your next move.

Key facts about the Home Buyer Rescission Period

Effective January 3, 2023, the Home Buyer Rescission Period (HBRP) gives buyers of residential real estate in B.C. the right to cancel a contract of purchase and sale within 3 business days of the seller accepting the offer.

A few important points:

• The rescission period starts the next business day after both parties sign the contract.
• The buyer has 3 business days to cancel.
• The buyer must pay a fee to cancel.
• The right to rescind cannot be waived by either the buyer or the seller.

This rule applies across Greater Vancouver, including Vancouver, West Vancouver, North Vancouver, Burnaby, Richmond, and surrounding cities.

How the rescission fee works

If a buyer decides to back out within the 3‑day rescission period, they must provide a written Notice to Rescind and pay a fee equal to 0.25% of the agreed purchase price.

For example:

• Purchase price: $1,100,000
• Rescission fee: $2,750 (0.25% of $1,100,000)

That fee is paid to the seller. After that, both parties move on, and the seller is free to accept other offers.

Which types of properties are covered

The rescission period applies to most residential real estate purchases in Vancouver and across B.C., including:

• Single‑family detached Vancouver homes for sale
• Half‑duplexes and townhomes
• Vancouver condos and other multi‑unit properties
• Residential strata lots
• Manufactured homes on leased or owned land

Most buyers in Vancouver neighbourhoods are now covered, whether they are purchasing a Kitsilano condo, a Yaletown high‑rise unit, a family home in East Vancouver, or a luxury real estate property in West Vancouver or North Vancouver.

How the rescission period works with subjects

In many Greater Vancouver deals, offers still include subjects such as:

• Financing approval
• Home inspection
• Review of strata documents
• Sale of the buyer’s existing home

These subjects run at the same time as the 3‑day rescission period. The rescission period does not start after subjects are removed. It starts right after the offer is accepted.

So, if you write a subject‑to‑financing offer on a Vancouver condo, you still have the 3‑day rescission period, and your normal subject removal dates both running together.

Why this change was introduced

This rule was brought in after the intense market of 2020 and 2021, when many Vancouver buyers felt forced to write offers very quickly, sometimes without conditions, just to compete in bidding wars.

During that time:

• Buyers often wrote unconditional offers to beat other bids.
• Some offers were far above asking price.
• In certain cases, buyers bought properties with limited due diligence, especially in fast‑moving Vancouver neighbourhoods.

The rescission period gives buyers a brief window to secure a property, then step back and reconsider if needed, even if emotions were high when the offer was written. There is a cost to backing out, but there is also a measure of peace of mind.

What this means for Vancouver sellers

If I am advising a seller of a house or condo in Vancouver, West Vancouver, or North Vancouver, I explain that this rule does not stop you from selling. It just changes the timing of when a deal is considered firm.

Here is how it affects you as a seller:

• After your home goes under contract, the buyer has 3 business days to rescind.
• During that time, you can still show your property and accept backup offers.
• For unconditional offers, the property is not truly “sold” until the rescission period ends.
• If the buyer cancels within the period, you keep 0.25% of the purchase price and can move on to the next serious buyer.

This is important for planning your next purchase, especially if you are moving up to luxury real estate in West Vancouver or downsizing to a strata property in a central Vancouver neighbourhood.

Impact on buyers in Greater Vancouver

As a buyer, this rule affects how you plan your search and your finances.

Here is what I look at with my clients:

• Emotional decisions
  In hot markets, it is easy to get caught up in bidding wars. The rescission period gives you a defined window to reconsider with a clear head.
• Cost of backing out
  The 0.25% fee is real money. On a $2,000,000 luxury home, the fee is $5,000. You should treat every accepted offer as serious, even though you have this safety valve.
• Timing with subjects
  If you are buying a strata property, you may need time to review strata minutes, bylaws, depreciation reports, and contingency fund balances. The rescission period does not replace subjects. It works alongside them.
• Total closing costs
  When you buy in Vancouver, you also need to budget for closing costs such as legal fees, property transfer tax (BC), inspections, and moving costs. The rescission fee, if used, is an extra cost on top of this.

(Always confirm tax and legal details with your lawyer, accountant, or other qualified professional. This summary is for general information only.)

Common questions from Vancouver buyers and sellers

Does this make Vancouver homes harder to sell?

Not in a meaningful way. Properties that are well‑priced and well‑presented still attract strong interest, especially in sought‑after Vancouver neighbourhoods. The rescission period slightly changes when a deal is considered firm, but qualified buyers are still buying.

Does this replace home inspections or financing subjects?

No. The rescission period is not a substitute for proper due diligence. If you are buying a Vancouver condo or any strata unit, you still need to:

• Review strata documents and bylaws
• Understand monthly fees and any upcoming special levies
• Inspect the unit and common property where possible
• Confirm financing, especially on older buildings or unique properties

The rescission period gives you a fallback, but it does not replace smart subject conditions.

Why bring this in now if the market has already cooled?

Sales volume has cooled compared to the peak years, but Vancouver real estate remains competitive in many price ranges and locations. The rule is designed for long‑term consumer protection, not only for short bursts of activity.

In future upswings, when bidding wars return in more Vancouver neighbourhoods, buyers will still have this protection.

How this ties into luxury real estate in Vancouver

In the luxury real estate segment, especially in West Vancouver, North Vancouver, and select Vancouver west‑side areas, purchase prices are higher and the decisions carry more weight.

For these buyers and sellers:

• The rescission fee can be significant, given higher price points.
• The 3‑day window allows time to revisit financing, tax planning, and long‑term goals.
• Sellers of high‑end Vancouver homes for sale should treat accepted offers as conditional until the rescission period passes.

Well‑planned strategy, strong negotiation, and clear communication become even more important in this price range.

Next steps if you are buying or selling in Vancouver

If you are thinking about entering the Vancouver real estate market, here is how I can help you use the rescission period to your advantage:

• For buyers, I help structure offers that protect you, while still staying competitive in Greater Vancouver markets.
• For sellers, I prepare you for how the rescission period affects timing, pricing, and negotiations, whether you are listing a downtown condo, a family home, or a luxury estate.

If you would like a detailed market update for your area, or you are comparing Vancouver homes for sale across different neighbourhoods, I invite you to reach out.

You can book a call or request a confidential market evaluation, and I will walk you through how the current rules, including the rescission period and property transfer tax (BC), fit into your buying or selling plan with a clear, step‑by‑step approach.

For tailored guidance, connect with me as your Realtor Vancouver resource for Vancouver condos, strata properties, and detached homes across Greater Vancouver.