Cooling-off legislation: What impact will it have on BC market?

By Fergal McAlinden - May 31, 2022

Amid the furore over rising interest rates and a sales slowdown in recent weeks, one story that may have crept under the radar of housing market observers was British Columbia’s provincial government pushing ahead with plans for a cooling-off period in the purchasing process.

Bill 12 passed through the BC legislature at the end of April, amending the Property Law Act to allow would-be buyers to back out of a deal during a limited time period.

Some clarity was shed on the move last week when the province’s Financial Services Authority recommended that the cooling-off period last three business days while also advising that buyers not be allowed to waive the period for backing out (with exceptions including court-ordered sales or auctions).

The report also said sellers should be allowed reasonable access for a property inspection during that three-day period, with a “modest” termination fee of 0.1-0.5% of the home price recommended for buyers who change their mind on a deal.

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