Key takeaways:
- Compulsory three days will give possible homebuyers time to organize an inspection and secure financing.
- B.C. Finance Minister Selina Robinson has declared the province will introduce a three-day cooling course to save people from feeling pressured into high-risk property purchases.
British Columbia has declared a three-day course to let homebuyers time to arrange an inspection and take other essential measures like assuring financing in the region’s high-pressure real estate market.
Finance Minister Selina Robinson says the customer protection policy, effective Jan. 1, is sought to provide people with peace of mind as total offers are common and could later cost buyers thousands of dollars in restorations.
Robinson says the first of its sort policy in Canada has a revocation fee of 0.25 percent of the purchase cost, or $250 for every $100,000, for those who back out of a deal, balancing the demands of customers and sellers.
Buyers can still make offers conditional on home inspections or financing at any time, the region said in a statement.
Also read: Hot, dry climate approaches, B.C. citizens advised preparing
Robinson says the homebuyer protection course is based on talks with the B.C. Financial Services Authority and buyers’ experiences who hopped into deals they subsequently regretted.
Elaine Spilos, a homebuyer who joined Robinson at a press conference Thursday, says she got the finance minister after she and her husband were ensured by their Realtor that the “premium” home they bought had already been inspected and made to code.
Spilos says the past couple endured a “harrowing experience” three weeks after their investment when a sewer backed up, with similar damage nine months after.
Industry experts unsure about the effectiveness
In March, the British Columbia Real Estate Association released a white paper that made 34 proposals to manage current concerns with the region’s housing market, the real estate transaction process, and consumer protection.
Source – CBC News
