Finance Minister Selina Robinson says the consumer protection policy, which comes into effect on January 1, is aimed at giving people peace of mind as unconditional offers are common and could later cost buyers thousands of dollars in repairs. Robinson says the policy, the first of its kind in Canada, includes a cancellation fee of 0.25 per cent of the purchase price, or $250 for every $100,000 for those who back out of a deal, balancing the needs of both buyers and sellers . Buyers will still be able to make offers conditional on home inspections or financing at any time, the province said in a statement. Since April, real estate sales in Vancouver have slowed, down about 35 per cent from last June and 16 per cent from May 2022, as homes stayed on the market longer and interest rates rose. (Ben Nelms/CBC) Robinson says the homebuyer protection period is based on consultations with BC’s Financial Services Authority and the experiences of buyers who made offers they later regretted. Elaine Spilos, a homebuyer who joined Robinson at a news conference Thursday, says she contacted the finance minister after she and her husband were assured by their Realtor that the “wonderful” home they bought had already been inspected and built. with coding. Spilos says the retired couple had a “very painful experience” three weeks after buying it when it became a sewer backup, with similar damage nine months later.
Industry experts are skeptical about the effectiveness
In March, the British Columbia Real Estate Association released a white paper that made 34 recommendations aimed at addressing current concerns about the province’s housing market, the real estate transaction process and consumer protection. Chief Executive Officer Trevor Koot is disappointed the province only announced one measure Thursday to protect home buyers. “The market has changed so much that it becomes relatively useless in the current market and environment.” Koot says research done by the BCREA showed that a “pre-offer period” of at least five business days after a property is first listed would give homebuyers more protection. During this time, sellers would have to list their properties, but would not be able to accept offers. He says the industry will monitor how effective the three-day cooling off period is after it comes into effect in January. Koot is also disappointed that the province did not follow BC’s real estate regulator’s recommendations. BC’s Financial Services Authority released a report in May that recommended a cooling-off period should be accompanied by an additional pre-offer period. Vancouver Realtor Lorne Goldman believes any cooling period will be detrimental to sellers. “Why don’t we just let the property go on the market and make the sellers wait five or seven days or two weeks to look at offers?” He says if buyers need more time for things like property inspections, that can happen before an offer.
