Last week the provincial government announced the roll out of their Homebuyer Protection Plan (HPP).
This new measure will begin January 2023. The Victoria Real Estate Board, the other provincial boards and BCREA will continue to work with the BC Financial Services Authority preparing for the introduction and implementation of the HPP.
Please note that we do not have full information regarding the roll out and application of the HPP at this time.
Per BCREA, here are the details that are currently available:
Deposit
- if a deposit is held in trust, brokerages may release it upon rescission
- rescission fee amount is provided to the seller
- the balance (if any) is returned to the buyer, despite what may be provided in the contract.
Exemptions and waivers
The HPP cannot be waived. Narrow exemptions include:
- sales subject to a 21 of the Real Estate Development Marketing Act
- sales of residential real property located on leased land
- sales of leasehold interest in residential real estate
- sales at auction
- sales under a court order or supervision of a court
Defining residential real estate
The policy will apply to the following types of structures:
- detached homes,
- semi-detached homes,
- townhouses,
- apartments in a duplex or other multi-unit dwelling,
- residential strata lots,
- manufactured homes that are affixed to land, and
- cooperative interests that include a right of use or occupation of a dwelling.
The HPP does not apply to presale properties already subject to a rescission period under the Real Estate Development Marketing Act.
Requirements to Inform Consumers
Licensees must provide general information on the HPP to all consumers through the Disclosure of Representation in Trading Services (prescribed content).
Service of Notice
Homebuyers must serve rescission notice on the seller in one of the following forms:
- registered mail
- fax
- e-mail with read receipt
- Personal service
Rescission Notice Content
Rescission notice must contain:
- address, PID or description of the property
- names and signature of the purchaser
- name of the seller(s)
- date of notice
Additional Disclosure
Licensees must also provide an additional mandatory disclosure at the time of preparing an offer on behalf of presenting an offer to a client, containing the following information:
- the HPP cannot be waived,
- the rescission period,
- dollar amount of the rescission fee,
- deposit handling, and
- HPP exemptions.
Records Retention
Brokerages must retain a copy of a rescission notice that it prepares or receives (enables audit and reporting).
To learn more: