The provincial government introduced a home buyer protection period, which is a new regulation that allows home buyers to back out of a residential purchase up to three days after signing a contract.
The government will begin to enforce this regulation starting on January 1, 2023.
The province claims that this three day cooling off period will help ensure that all homebuyers have an opportunity to conduct due diligence, such as securing financing or arranging home inspections.
KEY FACTS:
- The new cooling off period will be effective January 1, 2023
- Buyers will have three days to back out of a residential purchase after signing a contract
- Buyers who back out of a contract within this three day period will have to pay a rescission (cancellation) fee of 0.25%. For example, if the purchaser exercises the right of rescission on a $1 million home, they would be required to pay the seller $2,500
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