Presales - 7 Day Rescission Period

When it comes to real estate in BC, the time given for buyers to do their due diligence is referred to differently in resale and pre-sale situations. In resale, it's called subject removal, while in pre-sale, it's the 7 day rescission period.

One key difference is that with subject removal, backing out should be related to the subjects, while with pre-sale, buyers have the right to walk away for any reason within the 7 days.

However, it's crucial to give written notice within the 7 days to avoid being contractually obligated to provide the deposit. During the 7 day rescission period, buyers should talk to a mortgage broker (if a mortgage is needed to complete on the property), read the disclosure statement, review the final contract with their realtor and lawyer, talk to their accountant, and get their deposit ready.

It's important to work with a realtor to ensure proper due diligence and protection of your best interests.

Sidenote:

There will be a new policy implimented in the new year for buyers of resale properties to also walk away for any reason. However, the buyer would have to pay 0.25% of the agreed purchase price in penalties if the reason used were not covered in the subjects of your contract. We will discuss this new policy in an upcoming blog.