What is the Home Buyer Rescission Period (HBRP)?
The HBRP, commonly known as a “rescission period,” gives buyers the right to withdraw from a purchase agreement within a specified period of time after an offer is accepted. Without a rescission period, if a buyer wishes to terminate an unconditional contract, they would need to negotiate with the seller and would typically face significant financial penalties or legal ramifications.
How much is the rescission fee? Buyers who exercise their right to rescind will have to pay a fee of 0.25% of the purchase price. For a $1,000,000 home, this would result in a $2,500 fee paid to the seller.
What is meant by “three business days?” The HBRP provides that the buyer must exercise their rescission right within three clear business days. Business days do not include Saturdays, Sundays or holidays.
Are there any exemptions? There are narrow exemptions, including: sales of residential real property located on leased land, sales of leasehold interest in residential real estate, sales at auction, sales by way of an Assignment of Contract, pre-construction sales of multi-unit development properties, which are already subject to a seven-day rescission period, and sales under a court order of supervision of a court.
You’ll need a deposit in hand when writing an offer.
Read More in the Consumer Guide