At a glance (2 minute read)

  • BCREA's proposal ensures buyers make informed decisions by introducing a mandatory "pre-offer period", and measures to access information.

Record low supply and rising home prices have driven some panicked, hopeful home buyers to make risky decisions.

To protect home buyers, BC Real Estate Association (BCREA) with the support of its provincial boards spent time drafting solutions and came up with a white paper with 30 recommendations aimed at improve market conditions.

These recommendations, released on February 28, 2022, are grouped into four broad categories:

  • improving housing affordability;
  • enhancing protection for home buyers;
  • evolving the real estate sector; and
  • creating a better regulatory structure.

Here we’ll focus on recommendations to protect home buyers. Here’s a quick comparison of a recent BC Ministry of Finance proposal and BCREA’s proposals. 

Protecting home buyers: cooling-off vs pre-offer period

 

BC Ministry of Finance BC Real Estate Association

November 4, 2021: proposed a cooling-off period

·         home buyers who change their minds and cancel the purchase with no or diminished legal consequences;

·         similar to seven-day cooling-off period for pre-construction sales of multi-unit development properties, like condominiums under the Real Estate Development and Marketing Act.

 

 

 

 

 

February 28, 2022: makes 30 recommendations.

·         A key recommendation: introduce a mandatory “pre-offer period” of a minimum of five business days from the time of listing instead of a “cooling-off period.”

·         During this period, offers can’t be presented, so buyers have time to view the property, review documents, get a home inspection, understand insurance issues and risks, and get financing in place.

·         Ensure buyers have access to information by making property disclosure statements mandatory and available on listing. For stratas: bylaws, depreciation reports, council correspondence and more.

·         Apply protections to all residential properties for sale, not just MLS® properties.

 

Read more about BCREA’s recommendations to protect home buyers.

Read BCREA’s white paper, A better way home: strengthening consumer protection in BC. (Opens a 57-page pdf)