BC introduced a “cooling-off period” for house purchases, which can unconditionally break the contract within 7 days

The BC provincial government recently introduced a new policy that has exploded the whole people.
The BC government will introduce legislation in 2022, requiring a cooling-off period for resale properties and newly built houses. The purpose is to cool down the real estate market, which has been artificially overheated and pushed up on prices.
According to data, housing prices in Metro Vancouver continue to soar. The benchmark price of all housing types is $1,199,400, which is nearly $1.2 million. The number of home sales in October was 3,494, which was about 22% higher than the historical average.

Apartments in good locations will attract a bunch of buyers who frantically grab offers when they are pre-sold. The cooling-off period set by the BC Provincial Government is to allow buyers time to calm down and think about their options. If you feel that you can’t afford it or are not so suitable, you can give up the offer within 7 days.

Finance Minister Selina Robinson said that the introduction of this new policy will be similar to the cooling-off period previously established for pre-sale apartment sales. At the same time, the government will also consult relevant people to find out other risks that may arise in the sale of houses in a timely manner, and implement protective measures. This includes alternatives to the hidden bidding system, as well as exemptions from conditions commonly found in quotations, and other practices that may pose risks to consumers.
“The decision of buyers to buy a house is undoubtedly the most important decision in their lives. Especially in the period of ups and downs in the real estate market, we must take effective measures to ensure that everyone makes the right choice.” Provincial Finance Minister Selina Robinson said in a statement.
“By introducing a cooling-off period for home buyers and taking other measures to ensure that effective safeguards are in place, people and their interests in the real estate market can be protected.”
The proposal will be provided to the government in early 2022 and is expected to be legislated in the spring of 2022.
Blair Morrison, CEO of the BC Financial Services Authority (BCFSA), said: “Ensuring a fair market and increasing public confidence in the province’s real estate market are our important missions.”
Due to the large amount of money involved in the purchase of a house, for most buyers, this is a major decision that families and individuals need to make. The “cooling-off period” is the power granted to the buyer by the law. The buyer can make full use of this time to repeatedly weigh and make the best decision for him.
Of course, any policy is a double-edged sword. The original intention of the government is to protect buyers, but for homeowners and real estate agents, this may not be so good.

With this “cooling-off period”, the interests of buyers may be guaranteed to a certain extent, but it may also cause a loss of trust between buyers and sellers. Instead of curbing housing prices, it will lead to a vicious circle and chaos in housing transactions.
The property market is booming, and listed real estate usually accepts one offer at the same time and accepts multiple backup offers. If a 7-day cooling-off period is implemented, the first buyer decides to abandon the transaction after the cooling-off period, and the second buyer may make up and enter the cooling-off period again after 7 days, and then abandon the transaction again.

The next buyer may subconsciously feel that the house has defects or problems, and it is very likely that they will not buy it. As a result, sellers have been stuck in the “cooling-off period” and are unable to sell their real estate, which is unfair to people who are eager to sell their houses to cash out or exchange houses.
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