An Update in Real Estate
Michael Cosburn here! Your Brookswood expert realtor with Homelife Benchmark Realty.
I wanted to give you all an update on some news that’s happening in Real Estate…
We are currently in what’s called a rescission period. Now you may be wondering, what does that mean, a rescission period?
Well, now buyers can make an offer on a home and have three business days to decide whether they want to rescind that offer (take that offer back). So say for example you want to purchase a property, you make the offer on Friday and in three business days after the date of acceptance creates a firm deal.
So if you change your mind and decide that it wasn’t the house that was meant for you then you have those three business days to rescind your offer.
However, there’s a catch…
If that buyer rescinds their offer, they have to pay a small fee of 0.0025%! So if you purchase a million dollar home then you’d have to pay $2,500.
This law was put into place here in British Columbia during when the market was hot and houses for sale had multiple offers. Sellers would have buyers interested in their home and put in an offer and say that they’ll send the deposit the next day.
However, the next day, that same buyer would put an offer and deposit down on another home that they actually wanted. Leaving the seller “holding the bag”, so to protect everyone's interests, this rescission period was put into place.
Key terms buyers and sellers have to follow are:
- Neither party can reject this or waive their right
- No party has to sign to release funds
Will this make a difference?
The real question is whether the rescission period will bring about any significant changes in the real estate market. Only time will tell, but we hope that buyers who put in offers do so in good faith and that this law will help protect everyone involved in the home-buying process.
So if you have any questions about the rescission process or the period that's in effect right now, let me know. And of course, if you have any other real estate questions, I'm always here to help!
You can contact me at 778-245-8424, or sold@brookswoodhomes.info.
