Buying a home is a big financial decision, but now it just got easier for Fort St John homebuyers to walk away from an offer. This is due to the recent introduction of provincial legislation that mandates a three-day rescission period after offer acceptance for all real estate transactions in British Columbia.
Understanding the Changes
The new legislation gives buyers a full three business days to reconsider their agreement and decide whether they truly want to go through with the purchase of the property. This change was implemented by the government in response to the skyrocketing real estate prices in the southern part of the province.
Impact on the BC Real Estate Market
The implementation of this legislation was to slow down the real estate market, with fewer multiple offers and less pressure on buyers to make an offer without careful consideration. The ability to rescind comes at a cost of 0.25% of the purchase price, which will come out of the deposit if the buyer decides to do so. For example, the cost to rescind a $500,000 accepted offer will be $1,250 which will come out of the deposit.
A Different Market Situation in Fort St. John
Fort St. John did not experience the same frenzy as our southern neighbours with home prices remaining quite steady, and we experienced our usual busy Spring market but multiple offers were still rare.
Advice for FSJ Homebuyers and Sellers
If you are planning on buying or selling a home this year, it is important to work with a real estate agent in Fort St. John who is familiar with the new procedures and rules. When listing a home, your agent must disclose the possibility of rescission to potential buyers. On the other hand, if you are buying a home and need to exercise your right to rescind, you should have an agent who is knowledgeable in providing the necessary documents to the seller and their agent.
I will continue to recommend to my clients to only submit offers to purchase in good faith when purchasing that home. I am predicting Spring 2023 will see many new listings coming to the market with potentially fewer buyers competing for those properties so there will be less pressure to make an offer without careful consideration.
Additional Measures to Cool the BC Market
The government has taken other steps to cool the real estate market, including a foreign-buyer purchase ban and restrictions on the amount of time realtors can advertise a new listing prior to its appearance on the MLS. This is to ensure that all buyers have an equal opportunity to view the offering.
The new real estate legislation brings significant changes to the BC home buying and selling process. As a buyer or seller, it is important to work with an informed real estate agent who can guide you through the process and ensure a smooth transaction.
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