The Cole’s Notes Version of the HBRP

The HBRP came into effect on January 3, 2023, and it provides buyers with an opportunity to rescind a contract to purchase of residential real property for up to three clear business days after an offer is accepted.

If the buyer exercises their right of rescission during the rescission period, they must pay the seller 0.25% of the purchase price.

The rescission period applies to many forms of residential property. However, there are exemptions for property located on leased land, a leasehold interest, property sold at auction, property sold under court order or supervision of the court – as well as where other legislation applies such as for presale condominiums and strata titled properties under the Real Estate Development Marketing Act.

To inform clients and unrepresented parties alike, two disclosures are required. The first is made to all consumers in the Disclosure of Representation in Trading Services form, which touches on general information on the HBRP and where to go for more information. The second is made only to clients at the time of preparing or presenting an offer, this detailed information on the HBRP includes that the rescission period cannot be waived, provides information about the period during which a buyer can rescind, details the calculation of the rescission fee and when it must be paid, explains how deposits are dealt with, and highlights the exceptions to the right of rescission.