Updated February 20, 2026 by Mike Stewart Vancouver Realtor
BC Home Buyer Rescission Period: The 3-Day Cooling Off Period Explained
The BC Home Buyer Rescission Period or HBPR, also known as the “3 Day Cooling Off Period,” is a new regulation introduced in British Columbia effective from January 3, 2023.
This regulation provides homebuyers with a three-day window to reconsider their decision after signing a subject free contract to purchase residential real estate. If a buyer decides to rescind their offer within this period, they are required to pay a rescission fee of 0.25% of the agreed-upon sale price to the seller.
This “Cooling Off Period” Period begins the next business day after the final acceptance of an offer and lasts for three business days. During this period, homebuyers can legally withdraw from the purchase without justification, albeit at the cost of the rescission fee.
When Does the 3-Day Rescission Period Start?
The three-day period starts the first day after the accepted offer and does not include weekends or recognized holidays. For example, if an offer is accepted on a Wednesday, the 3 -day rescission Period starts on Thursday and ends at 11:59:59 pm on the following Monday, assuming none of these days is a holiday.
How Much is the Rescission Fee for the BC Home Buyer Rescission Period?
The fee for a buyer to cancel or back out of the deal during the rescission period for existing homes is 0.25% of the agreed-upon sale price of the home. If the buyer exercises their right of rescission during the HBPR and the buyer has paid a deposit, then the seller will be paid their portion of the rescission fee from the deposit by the holding brokerage before the remainder is returned to the buyer.
Calculate How Much You Owe?
Please see our Home Buyer Rescission Calculator to calculate exactly how much you would need to pay a seller to rescind an accepted subject free offer in BC.
What Types of Properties Does the BC Home Buyer Rescission Period Apply To?
The rescission right applies to various types of residential real property, including:
- Detached homes
- Semi-detached homes
- Townhouses
- Apartments in a duplex or multi-unit/family dwelling
- Residential strata lots (i.e., condos)
- Manufactured homes that are affixed to land
- Cooperative interests that include a right of use or occupation of a dwelling
What Types of Properties are Exempt from the BC Home Buyer Rescission Period?
Certain properties are exempt from the three-day BC HBPR. These include:
- Leasehold land (e.g., SFU, Indigenous Lands, parts of False Creek, etc.)
- Property sold at auction
- Foreclosures or under court order/supervision of a court
- Presales or properties under Section 21 of the Real Estate Development Marketing Act (REDMA) which are subject to the 7 day rescission period.
How Does the BC Home Buyer Rescission Period Impact Buyers and Sellers?
For buyers, this 3-day cooling off period provides an opportunity to reconsider their decision after signing a contract. This period is particularly beneficial for those who have made a subject-free offer or have a subject removal period of less than three days.
For sellers, the BC HBPR can impact their ability to accept subject-free offers as all buyers will have an automatic right to a three-day period after a subject free offer is accepted.
Some critics argue that the 3 day cooling off period disadvantages sellers and can be abused by buyers who make offers on multiple homes, locking up scarce housing inventory.
BC Home Buyer Rescission Period FAQ
What is the BC Home Buyer Rescission Period?
The BC Home Buyer Rescission Period (HBRP), also known as the 3-day cooling off period, is a regulation that gives homebuyers in British Columbia three business days to cancel an accepted contract to purchase residential real estate. If the buyer rescinds within this period, they must pay a rescission fee of 0.25% of the purchase price to the seller. The HBRP took effect on January 3, 2023 and applies to all residential property sales in BC, including private sales.
How much is the rescission fee?
The rescission fee is 0.25% of the agreed-upon sale price. For example, on a $800,000 home, the rescission fee would be $2,000. On a $1,500,000 home, the fee would be $3,750. This fee is fixed by regulation and cannot be negotiated higher or lower by either party. Use our Home Buyer Rescission Calculator to calculate exactly how much you would need to pay.
When does the 3-day rescission period start?
The three-day rescission period starts the first business day after the final acceptance of the offer. Business days are Monday through Friday and do not include weekends or holidays as defined under BC’s Interpretation Act. For example, if an offer is accepted on a Wednesday, the rescission period starts Thursday and ends at 11:59 PM the following Monday (assuming no holidays fall in between).
Is the rescission period 3 business days or 3 calendar days?
The BC Home Buyer Rescission Period is 3 business days, not calendar days. Business days exclude Saturdays, Sundays, and holidays as defined in BC’s Interpretation Act. This is different from the 7-day rescission period for presales, which counts calendar days including weekends.
Can the BC Home Buyer Rescission Period be waived?
No. The BC Home Buyer Rescission Period cannot be waived by the buyer, the seller, or their representatives. It is an automatic statutory right that applies to every qualifying residential real estate transaction in British Columbia, regardless of what the contract says.
What happens if I have subjects on my contract? Do I still owe the rescission fee?
No. If you have subjects on a contract (such as financing or inspection) and are backing out because you could not satisfy a condition, you do not owe the rescission fee to the seller, even if you are backing out within the three-day rescission period. The rescission fee only applies when a buyer uses the HBRP to cancel a subject-free or already-firm deal.
Does the rescission period start after subject removal?
No. The rescission period starts the business day after final acceptance of the offer, not after subject removal. This means the rescission period runs concurrently with any subject conditions in the contract. For example, if you have a 5-day subject removal period and a 3-day rescission period, both timelines begin at the same time — the rescission period does not add extra days on top of your subjects.
How is the rescission fee paid to the seller?
If the buyer has already paid a deposit, the rescission fee (0.25% of the sale price) is deducted from the deposit by the holding brokerage and paid to the seller. The remaining balance of the deposit is returned to the buyer. If the buyer has not yet paid a deposit, the buyer is required to pay the rescission fee to the seller promptly, and in any event within 14 days of exercising their rescission right.
How do I rescind a home purchase during the cooling off period?
To rescind a purchase during the 3-day cooling off period, the buyer or their real estate agent must deliver a written notice of rescission to the seller within the three business day window. The notice can be sent by registered mail, fax, or email with a read receipt requested. The notice must include the property address or parcel identifier, and the buyer’s name and signature. The rescission is effective on the date the notice is sent.
Does the rescission period apply to presale condos?
No. Presale condos and new construction properties are exempt from the 3-day Home Buyer Rescission Period. Instead, presales are covered by a separate 7-day rescission period under the Real Estate Development Marketing Act (REDMA). The 7-day presale rescission period is longer, counts calendar days (not business days), and carries no penalty fee. For a detailed comparison, see our article on the 7-day rescission period for presales.
What properties are exempt from the BC rescission period?
The following property types are exempt from the 3-day Home Buyer Rescission Period: leasehold properties (such as those on SFU land, Indigenous lands, or parts of False Creek), properties sold at auction, properties sold under court order or foreclosure, and presale or new construction properties that fall under REDMA’s 7-day rescission period. All other residential property sales in BC, including private sales, are subject to the HBRP.
Can the seller accept other offers during the rescission period?
The contract is considered binding during the rescission period, so the property is effectively off the market. The seller cannot accept another offer while the existing contract is in place. If the buyer rescinds and pays the 0.25% fee, the contract is cancelled and the seller is free to accept other offers. This is one of the main criticisms of the HBRP from sellers — their property can be tied up for three business days with no certainty the deal will proceed.
What happens if I back out after the 3-day rescission period?
Once the 3-day rescission period has passed, you are legally bound by the contract. If you want to back out after the rescission period and you do not have subject conditions to rely on, you would be in breach of contract. The seller could pursue legal remedies including keeping your deposit and potentially suing for damages. This is why it is critical to use the rescission period wisely if you have any doubts about proceeding with the purchase.
Does the rescission period apply to private sales?
Yes. The BC Home Buyer Rescission Period applies to all residential real estate transactions in British Columbia, including private sales where no real estate agent is involved. The HBRP is a statutory right under the Property Law Act and cannot be contracted out of, regardless of how the sale is conducted.
Can the rescission fee be negotiated?
No. The rescission fee is fixed at 0.25% of the purchase price by the Home Buyer Rescission Period Regulation. Neither the buyer nor the seller can negotiate a higher or lower fee. This ensures consistency and predictability for all parties in BC residential real estate transactions.
Thinking about exercising your right of rescission?
Thinking about exercising your right of rescission?If yes, please be sure to check in with your Realtor and/or lawyer to get best result.
3 Day Rescission Right BC – Pro Tips
- Buyers should take advantage of the HBPR to conduct due diligence, such as securing financing or arranging home inspections.
- Sellers should be aware of the 3-day period after an accepted offer and its potential impact on their ability to accept subject-free offers.
- Buyers should be aware of the rescission fee and ensure they are prepared to pay it if they decide to rescind their offer within the cooling off period
- Both buyers and sellers should consult with their real estate agents to understand the requirements of the BC HBPR.
My Opinion – Is the 3 Day Cooling Off Period Necessary for the BC Real Estate Market?
It depends who you ask.
For the current provincial government with an eye to winning the next election by saying they are “doing something” about the real estate market in BC, then maybe it is necessary for them electorally.
In my professional experience and the experience for the vast majority for our clients, both buyers and sellers, the answer would be no.
The policy is redundant, poorly thought out, and unnecessarily increases uncertainty, hassle, paperwork & wasted time for all involved. The net result of all of this is increased cost for home buyers and sellers putting upward pressure on housing costs in BC.
In sum, the 3 day cooling off period has caused confusion for our clients both buyers and sellers (see FAQ’s) as well as increased costs due to heightened uncertainty with home purchases.
The 3 Day Rescission Period in BC Summed Up
The BC HBPR or “Cooling Off Period” in BC is a significant change in the real estate market. While it provides buyers with a safety net, it also introduces new considerations for both buyers and sellers. As with any major decision, it’s essential to consult with a professional to understand the implications fully.