By Canadian Press

B.C. becomes first province to require 3-day contract waiting period for homebuyers

Jan 3, 2023 | 2:51 PM

VANCOUVER — British Columbia has become the first province in Canada to require a three-day waiting period for buyers after they’ve signed an agreement to purchase a home.

The new homebuyer protection period is designed to give purchasers more time to arrange financing or home inspections after a deal has been accepted, details that the provincial government has said were left out during bidding in past sizzling housing markets.

The government says in a statement that the extra days would also give buyers more time to consider if the purchase is right for them amid high-pressure sales or as interest rates climb. 

Tsur Somerville, a professor at the University of British Columbia’s Sauder School of Business, says the change is targeting a concern that isn’t a problem in the current cooler market.

He says having the protection in place is important for the next time the market heats up, but the situation should be monitored for a potential power imbalance that could disadvantage sellers.

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The government says the program also includes a cancellation fee amounting to $250 for each $100,000 of a home’s purchase price to convince buyers, as well as sellers, to take the transaction seriously. 

Finance Minister Katrine Conroy says the measures will protect buyers and strengthen public confidence in the real estate market.

This report by The Canadian Press was first published Jan. 3, 2023.

The Canadian Press