Thursday, March 14, 2024

At a glance (3 minute read)

  • The Government Relations Committee of Greater Vancouver REALTORS® focused on solutions for attainable market housing during lobbying activities at the recent Government Liaison Days.
  • Recommendations include creating a Provincial Housing Roundtable and replacing the Home Buyer Rescission Period with a five-day pre-offer period to reduce negative consequences for both buyers and sellers.
Back row: L-R: Leon Prescesky, GRC; Ray Harris, chair GRC; Cory Raven, GRC; Tyler Hartling, GRC; David Eby, premier; Taryn Aragon, GRC; Lisa Morris, GRC; Harriet Permut, government relations director. Front row: L-R: Lisa MacIntosh, GRC; Diana Dickey, GVR chair-elect; Sara Ferriera Gordo, government relations assistant.

Solutions to the ongoing and increasing need for more attainable market housing was the key focus of lobbying activities for Greater Vancouver REALTORS® (GVR) in Victoria on March 10-12, 2024.  

As part of BC Real Estate Association’s (BCREA) annual Government Liaison Days advocacy efforts, representatives from GVR’s Government Relations Committee met with many of the 32 MLAs in the GVR’s region.

Province-wide, more than 60 Realtors from eight real estate boards shared their expertise on two important issues.

Issue 1: Permanent Provincial Housing Roundtable policy

The ongoing and increasing need for more attainable market housing requires more coordination and collaboration by all levels of government – federal, provincial, regional, municipal, and Indigenous – to help market and non-market organizations build attainable housing as quickly and efficiently as possible.

Recommendation

Create a Permanent Provincial Housing Roundtable comprising federal, provincial, municipal/regional, and Indigenous government authorities, market and non-market developers/builders, real estate professionals, and non-profit groups. This roundtable would:

  • guide the implementation and monitor the value of new housing policies introduced by the provincial government, and
  • speed viable policy solutions while avoiding disagreements between various levels of government.

Regular sectoral consultation could ensure that legislative efforts and new programs are coordinated, thereby avoiding conflict, redundancy, and unintended negative consequences. 

Issue 2: Pre-Offer Period policy

The Home Buyer Rescission Period (HBRP) was implemented during a time of multiple offers on properties without inspections and where buyers’ due diligence had declined. Since then, a buyers’ market has persisted, reducing the need for and use of the HBRP.

In September 2023, BCREA surveyed Realtors about the HBRP. Of the 2,986 responses, nearly 93 per cent of respondents stated they had not had homebuyers exercise their right of rescission. Most buyers mistakenly assume they can use the three-day HBRP to conduct due diligence, such as site inspections, when no such right (or sufficient time) exists, unless stipulated in the Contract of Purchase and Sale.

Instead of providing buyer protections during real estate transactions, the HBRP has caused confusion, exposure, and negative unintended consequences for buyers and sellers. The HBRP is being used as a loophole to allow unscrupulous buyers to tie up multiple properties, resulting in serious consequences for sellers, from sale delays due to rescinded agreements to pressure sellers to renegotiate agreements already finalized, as well as the loss of potential buyers. 

Recommendation

Replace the HBRP with a five-day pre-offer period, commencing on the date of the listing. During this time, sellers would allow access to the listed property for viewings and home inspections. All documents related to the property would be available at the time of the listing.

Providing prospective buyers with property documents and property access before offers are made allows an opportunity for due diligence and the ability to make an informed offer. Negative unintended consequences of the HBRP are reduced for the seller, specifically, the cascading collapse of dependent transactions, uncertainty and delays, and actions of purchasers tying up multiple properties or pressuring sellers to renegotiate.

GL Days speakers

BCREA organized a wide range of speakers who addressed housing issues.

Provincial level

  • Premier David Eby, MLA for Vancouver-Point Grey and BC NDP leader
  • Ravi Kahlon, MLA for Delta North and minister of housing
  • Kevin Falcon, MLA for Vancouver-Quilchena and BC United Party leader
  • John Rustad, MLA for Nechako Lakes and BC Conservative Party leader
  • Sonia Furstenau, MLA for Cowichan Valley and BC Green Party leader

Federal level

  • Scott Aitchison, MP for Parry Sound-Muskoka, federal Conservative Party shadow minister for housing and diversity and inclusion

Media

  • Richard Zussman, Global BC legislative reporter / president of the BC Legislature Press Gallery
  • Katie DeRosa, Vancouver Sun and The Province, legislative correspondent

Public opinion and housing

  • Mario Canseco, president, Research Co.

Real Estate

CREA

  • Federal Advocacy Update Dil Puar, government relations director, Canadian Real Estate Association (CREA)

BCREA

  • Trevor Koot, CEO, BCREA
  • Trevor Hargreaves, senior VP of government relations, marketing and communications, BCREA
  • Mark Sakai, advocacy projects manager, BCREA
  • Brendon Ogmundson, chief economist, BCREA
If you have questions about these issues or recommendations, please contact Harriet Permut, director of government relations at hpermut@rebgv.org.  

Read BCREA’s submissions