Home Buyer Protection Period in Around Town

June 2, 2022

Your Weekly Construction Briefing

The BC Financial Services Authority delivered its report report, “Enhancing Consumer Protection in B.C.’s Real Estate Market” to the Ministry of Finance last week. New real estate legislation to protect home buyers may be in place as early as this summer.

The BC Financial Services authority has submitted its report on parameters for a homebuyer protection period.

Recommendations include a buyer protection period, pre-offer period, transparent bidding and disclosure of offers. If approved an offer could not be accepted within the first five days of a listing and buyers with accepted offers would have a minimum of three days for due diligence. The three day period would be non-waivable, and is expected to enhance the buyer’s opportunity to conduct due diligence, while minimizing delays for sellers. 

Other recommendations include (not limited to); property disclosure forms required as part of the listing and a termination fee to address the risk of frivolous offers. Disclosure of the number and price of offers is recommended both when bidder’s are being asked to submit counter offers (aka “bidding war”) and post-sale.

The report also includes a requirement that the contract of purchase and sale includes standard optional clauses related to financing, home inspection, insurance, and legal advice.

The BCFSA report was developed following in-depth consultation with a wide range of participants that included key real estate industry organizations, consumer and public interest organizations, and subject matter experts. Further consultation is expected as the government considers implementation. 

To view the full report, go to the BC Financial Services Authority website here

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