175/2022

O.C. 436/2022

July 21, 2022

January 3, 2023

Property Law Act

Home Buyer Rescission Period Regulation

Definitions for regulation

In this regulation:

Act means the Property Law Act ;

brokerage trust account has the same meaning as in the Real Estate Services Act;

business day means a day other than a Saturday or a holiday;

parcel identifier means a permanent parcel identifier assigned under

section 58 of the Land Title Act .

Definitions for Act

section 42 of the Act:

days means business days;

residential real property means any of the following:

a detached house;

a semi-detached house;

a townhouse;

an apartment in a duplex or other multi-unit dwelling;

a residential strata lot, as defined in

section 1 (1) of the Strata Property Act ;

a manufactured home that is affixed to land;

a cooperative interest, as defined in

section 1 of the Real Estate Development Marketing Act , that includes a right of use or occupation of a dwelling.

Exemptions

The following are exempt from the application of

section 42 (1) of the Act:

residential real property that is located on leased land;

a leasehold interest in residential real property;

residential real property that is sold at auction;

residential real property that is sold under a court order or the supervision of a court.

Length of rescission period

For the purposes of

section 42 (1) of the Act, the prescribed number of days is 3 business days.

Service of notice of rescission

This

section applies for the purposes of

section 42 (1) of the Act.

A notice of rescission may be served on a business day or any other day.

A notice of rescission must contain the following:

the address, the parcel identifier or a description of the residential real property in respect of which the contract of purchase and sale is being rescinded;

the name, and the signature or electronic signature, of the purchaser who is exercising the right of rescission;

the name of each seller who is a party to the contract;

the date that the right of rescission is being exercised.

A notice of rescission is deemed to have been served on a seller if

the notice is sent by registered mail to the seller's address that is set out in the contract of purchase and sale,

the notice is transmitted by fax to the seller's fax number that is set out in the contract, or

the notice is transmitted by email, with a requested read receipt, to the seller's email address that is set out in the contract.

If a notice of rescission is sent or transmitted in accordance with subsection (4), the notice is deemed to have been served when it is sent or transmitted, as the case may be.

Amount payable on rescission

If a purchaser rescinds a contract of purchase and sale under

section 42 (1) of the Act, the purchaser must promptly pay to the seller an amount that is equal to 0.25% of the purchase price for the residential real property that is set out in the contract.

If a deposit was received under the rescinded contract of purchase and sale by or on behalf of the seller,

the amount payable under subsection (1) must be paid to the seller from the deposit, and

after the seller is paid under paragraph (a), the remainder of the deposit must be paid promptly to the purchaser.

Money in a brokerage trust account may be withdrawn if it is money paid

to the seller under subsection (2) (a), or

to the purchaser under subsection (2) (b).

Right of rescission not waivable

The right of rescission under

section 42 (1) of the Act cannot be waived.

[Provisions relevant to the enactment of this regulation: Property Law Act , R.S.B.C. 1996, c. 377, s. 43.]