BC Home Buyers Recission Period (HBRP) & Canadian Foreign Buyers Ban - What you need to know

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Jordan Lee
eXp Realty - @TheVancouverLife
[email protected]
778-847-9392

2023 has brought a couple important changes to real estate, affecting the purchase and sale process and who can buy real estate here in Vancouver. The BC Government likes to get their hands involved in attempting to make real estate more affordable here in our city! Here are the 2 new rule changes to the Vancouver Real Estate market that you should be aware of!

I am Jordan with The Vancouver Life Real Estate Group and exp Realty and I create videos like this every single week to give all of you the education you need about the Vancouver Real Estate market.

2023 Real Estate Rule Change #1: The Home Buyers Recission Period

The Home Buyer Rescission Period (HBRP) gives buyers a window to have a change of heart about the purchase of the property. It was simply intended to prevent buyers from regretting their purchase, or getting in over their heads in the heat of the moment amids a booming market and competitive multiple offer scenarios.

The HBRP or the cooling off period Came into force on January 3rd 2023. As a buyer, you now have the ability to back out of your residential purchase within three business days after the final acceptance of a firm and binding offer. while buyers now have the new option to back out, it does come at a cost to activate. The seller is entitled to .25% of the agreed sale price of the property should you decide to exercise your right to rescind. Certain homes are exempt, such as leasehold properties, and court orders sales.

So how might this new rule effect you?

Well in my opinion, what this basically means, is that there’s really no such thing as a SUBJECT FREE, or UNCONDITONAL offer anymore. If your “No Subject” offer is accepted, you still are afforded 3 days to do an inspection, and make sure your financing is approved. While this is in theory advantageous to you as a buyer, it does also mean that your subject free offer, which would have been previously extremely attractive to a seller in a competitive multiple offer situation, may not hold as much weight as it once did when a seller is deciding on which offer is the most attractive.

This new legislation would have been far more useful if it was implemented back in the spring of last year when the market was at it’s hottest, but since our market has already since cooled off, it has yet to be seen if this new rule will have any effect.

2023 Real Estate Rule Change #2: Foreign Buyers Ban

As of January 1st, 2023, most foreign buyers are banned from buying residential property in Canada for 2 years.
While there are numerous exemptions, it’s aimed at increasing the housing supply in order to make homes more affordable

But according B.C. Real Estate Association the effect of this ban on affordability is believed to be quite insignificant as, Over the past two years only about 0.5 per cent or actually less most months of home sales in B.C. were to foreign investors. So if you want to take that number all the way down to zero, it’s not going to make much of a difference at all

As mentioned earlier, there are some exceptions to the ban, including:

- Does not apply to Canadian Citizens or Permanent Residents

- There are some exceptions for students and work visa holders

Some exceptions based on location, most notable in BC are the Sunshine Coast, Squamish, Whistler and Pemberton (always double check!!)


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Navigating the Vancouver real estate market can be tricky and it’s important that you work with a professional who knows how to avoid the landmines and guide you to success especially in a market like we are in today and where it is going.

Reach out today if you or someone you know is looking to make a change in the next 6 months so we can chat about your specific situation.

Let our team at the The Vancouver Life Real Estate Group, powered by eXp Realty, guide, educate and help you through the process of selling or buying property.

Book a 30-min Call with me: https://calendly.com/placeswithjordan

Are you an agent looking to level up your business or are you wanting to find out how eXp Realty could improve your business? Book a 30-min call with me: https://calendly.com/placeswithjordan


Did you miss our previous article...
https://trendinginrealestate.com/where-to-buy/tips-for-getting-bank-owned-properties-cheap