On November 4th 2021, the BC Government announced that changes would be introduced in the Spring of 2022 which will give homebuyers a chance to change their minds on the purchase of a home. This “cooling off” period gives buyers the ability to withdraw from an accepted offer to purchase a home within a specific amount of time. The period of time that buyers will have has still not been determined.
Right now, if a buyer wishes to terminate a contract for reasons other than those already agreed upon in their existing terms, they will need to negotiate with the seller and would likely face significant fees or legal consequences.
I have been hearing a lot about this subject from both clients and industry colleagues. Concern is mainly around the possibility that buyers would be able to just walk away from transactions without any consequences, putting sellers at risk after they have accepted an offer. This concern is quite valid and there are ways to mitigate the possibility of it occurring.
As an industry, we need to be responsible when making bids on homes both on the part of buyers and the agents that represent them. As agents, we must ensure that our buyers have good intentions as we present their offers to our colleagues representing the sellers. Agents representing sellers will need to exercise caution when looking at offers (especially in multiple offer situations) to ensure that the transaction makes sense for the buyer(s) and take time to qualify the agent representing them.
The success of this new legislation will rest upon us, as real estate agents and as clients. We will need to act responsibly when making and accepting offers. There will always be exceptions to these situations, and we will need to deal with them as they come up.
I’d be happy to help you navigate these changes and answer to any real estate questions you may have, please reach out!