What Is the Home Buyer Rescission Period?
The Home Buyer Rescission Period (HBRP) is a mandatory cooling-off period that gives buyers in British Columbia 3 business days to withdraw from a purchase after signing a contract of purchase and sale — without needing to meet any conditions.
Introduced in January 2023 under the Property Law Act, this policy was designed to protect buyers from making rushed decisions in a competitive real estate market. Before the rescission period, buyers who signed a contract had no legal way to back out unless they had included specific subjects (conditions) in their offer.
Key Takeaway
How the Rescission Period Works
Here's a step-by-step breakdown of how the rescission period works in a typical BC real estate transaction:
Your offer is accepted
When the seller accepts your offer and the contract of purchase and sale is fully executed (all parties have signed), the rescission period clock starts.
The 3 business day window begins
You have 3 full business days to decide whether to proceed. Business days exclude weekends and statutory holidays. The period starts the day after the contract is accepted.
You can choose to rescind
If you change your mind for any reason, you can deliver a written rescission notice to the seller (or their agent) before 11:59 PM on the third business day. You don't need to give a reason.
Pay the 0.25% fee
If you rescind, you must pay the seller a fee equal to 0.25% of the purchase price. On a $900,000 home, that's $2,250. This amount is deducted from your deposit.
Calculate Your Rescission Fee
See your exact rescission fee and deadline dates with my free calculator.
Rescission Fee at Different Price Points
The 0.25% rescission fee scales with the purchase price. Here's what it looks like at common Surrey and BC price points:
| Purchase Price | 0.25% Rescission Fee |
|---|---|
| $500,000 | $1,250 |
| $750,000 | $1,875 |
| $900,000 | $2,250 |
| $1,000,000 | $2,500 |
| $1,200,000 | $3,000 |
| $1,500,000 | $3,750 |
| $2,000,000 | $5,000 |
While the fee is relatively small compared to the purchase price, it provides real compensation to the seller for the disruption of having to relist their property and potentially miss other buyers.
When the Rescission Period Applies (and When It Doesn't)
The rescission period applies to most residential real estate transactions in BC, but there are important exceptions:
The rescission period APPLIES to:
- Detached houses, townhomes, condos, and other residential properties
- Pre-sale (presale) condo and townhome purchases
- Residential property on leased land
- Properties purchased at auction (with some conditions)
The rescission period does NOT apply to:
- Commercial and industrial properties
- Properties sold by court order
- Properties transferred between related parties (e.g., family transfers)
- Properties sold through a tax sale
- Lease agreements (only purchases)
⚠️ Subjects vs. Rescission Period
How to Count the 3 Business Days
Counting the rescission period correctly is crucial. Here's how the timing works:
- Day 0 — The day the contract is fully executed (all parties have signed). This does NOT count as one of the 3 days.
- Day 1 — The first full business day after execution. The clock starts here.
- Day 2 — The second business day.
- Day 3 — The last day to deliver your rescission notice. Must be received by 11:59 PM.
💡 Business Day Definition
Example: If your offer is accepted on Wednesday evening, Day 1 is Thursday, Day 2 is Friday, and Day 3 is Monday (Saturday and Sunday don't count). You would need to deliver your rescission notice by 11:59 PM on Monday.
Impact on Buyers and Sellers
The rescission period affects both sides of a real estate transaction differently:
For buyers:
- Provides a safety net if you made a hasty decision
- Gives time to get a home inspection or review financing even after a clean offer
- Reduces pressure in competitive bidding situations
- The 0.25% fee is a small price for peace of mind
For sellers:
- Creates 3 days of uncertainty after accepting an offer
- The 0.25% fee compensates for the disruption if a buyer walks away
- May affect negotiation strategy and timing of backup offers
- Some sellers prefer offers from buyers who have already done due diligence
In my experience working with both buyers and sellers in Surrey, the rescission period has actually made transactions smoother overall. Buyers feel more confident making offers, and the instances of buyers actually rescinding are relatively rare — it's primarily a safety net that gives people peace of mind.
If you're making an offer on a home, understanding the BC Contract of Purchase and Sale is also important for knowing your rights and obligations as a buyer.