Regulation Updates - Home Buyer Rescission Period Regulation
Selling a home is one of life’s big decisions. With so much to consider and to keep track of, here’s what you need to know about the Home Buyer Rescission Period.
As of January 3, 2023, when you accept an offer to purchase your home, the potential
buyer has three business days to cancel the contract. This is called the “right of rescission.” 3 DAYS TO RECONSIDER!
If the buyer changes their mind about the purchase and exercises their right of rescission, they must notify you in writing.
1) Definitions for regulation
In this regulation: “Act” means the Property Law Act; “brokerage trust account” has the same meaning as in the Real Estate Services Act; “business day” means a day other than a Saturday or a holiday; “parcel identifier” means a permanent parcel identifier assigned under section 58 of the Land Title Act.
2) Definitions for Act
In section 42 of the Act: “days” means business days; “residential real property” means any of the following: (a) a detached house; (b) a semi-detached house; (c) a townhouse; (d) an apartment in a duplex or other multi-unit dwelling; (e) a residential strata lot, as defined in section 1 (1) of the Strata Property Act; (f) a manufactured home that is affixed to land; (g) a cooperative interest, as defined in section 1 of the Real Estate Development Marketing Act, that includes a right of use or occupation of a dwelling.
3) Exemptions
The following are exempt from the application of section 42 (1) of the Act: (a) residential real property that is located on leased land; (b) a leasehold interest in residential real property; (c) residential real property that is sold at auction; (d) residential real property that is sold under a court order or the supervision of a court.
4) Exemptions
For the purposes of section 42 (1) of the Act, the prescribed number of days is 3 business days.
5) Service of notice of rescission
(1) This section applies for the purposes of section 42 of the Act.
(2) A notice of rescission may be served on a business day or any other day.
(3) A notice of rescission must contain the following:
(a) the address, the parcel identifier or a description of the residential real property in respect of which the 3 Exemptions 4 Exemptions 5 Service of notice of rescission contract of purchase and sale is being rescinded;
(b) the name, and the signature or electronic signature, of the purchaser who is exercising the right of rescission;
(c) the name of each seller who is a party to the contract;
(d) the date that the right of rescission is being exercised.
(4) A notice of rescission is deemed to have been served on a seller if
(a) the notice is sent by registered mail to the seller’s address that is set out in the contract of purchase and sale,
(b) the notice is transmitted by fax to the seller’s fax number that is set out in the contract, or
(c) the notice is transmitted by email, with a requested read receipt, to the seller’s email address that is set out in the contract.
(5) If a notice of rescission is sent or transmitted in accordance with subsection (4), the notice is deemed to have been served when it is sent or transmitted, as the case may be.
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