Real Estate Law
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Signing a contract to buy a home is a big step, and in a fast market buyers can feel pressure to decide quickly. British Columbia gives most buyers of residential property a short legal window to change their mind after the seller accepts the offer. This is the home buyer rescission period, often called the cooling-off period. This guide explains where the right comes from, which homes it covers, how to count the three business days, how to give a valid notice, what cancelling costs, and the mistakes that can cause problems.
Last updated: November 4, 2026
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Under section 42(1) of the Property Law Act, a purchaser of residential real property in British Columbia may rescind (cancel) the contract of purchase and sale by serving written notice of rescission on the seller within the prescribed number of days after the date the acceptance of the offer was signed.
The details are in the Home Buyer Rescission Period Regulation, B.C. Reg. 175/2022. It sets the length of the period, what the notice must say, how it is served, and what the buyer must pay. The right belongs to the buyer. Sellers are affected too, because a signed deal can be cancelled by the buyer during the period.
Section 2 of the Regulation defines residential real property for this purpose. It includes:
Commercial-only property is not on this list, so it is not covered.
Section 3 of the Regulation exempts residential property located on leased land, a leasehold interest in residential property, property sold at auction, and property sold under a court order or the supervision of a court.
Section 42(2) of the Property Law Act also excludes contracts covered by section 21 of the Real Estate Development Marketing Act. That section gives buyers of qualifying development units (often called presales) a separate right to rescind within 7 days after the later of the date the purchase agreement was made and the date the developer obtained the buyer’s written acknowledgment of receiving the disclosure statement. You can read more in our guide to buying a presale home in BC.
Finally, under section 42(3) of the Property Law Act, the right does not apply once title has been transferred to the buyer.
Section 4 of the Regulation sets the period at three business days. A business day is any day other than a Saturday or a holiday. Under the Interpretation Act, holidays include Sundays and statutory holidays such as New Year’s Day, Family Day, Good Friday, Easter Monday, Victoria Day, Canada Day, British Columbia Day, Labour Day, the National Day for Truth and Reconciliation, Thanksgiving Day, Remembrance Day, Christmas Day and December 26.
The count starts the day after the acceptance was signed. The day of acceptance does not count. For example, if the acceptance is signed on a Friday and the following Monday is not a holiday, the three business days are Monday, Tuesday and Wednesday. The law sets the final day; it does not set a particular time of day, so it is safer not to leave the notice until the last moment.
Under section 6 of the Regulation, a buyer who rescinds must promptly pay the seller an amount equal to 0.25 percent of the purchase price set out in the contract. It is 0.25 percent of the price, not of the deposit. For example, on a purchase price of $1,000,000, the amount is $2,500.
If the seller received a deposit, the amount is paid to the seller from the deposit, and the rest of the deposit must be returned promptly to the buyer.
Section 7 of the Regulation says the right of rescission cannot be waived. A clause in the contract that tries to take the right away does not remove it.
The rescission period and subject clauses (for example, subject to financing or subject to inspection) are different things. The law on the rescission period does not mention subject clauses. The period runs from the date the acceptance was signed, and a subject clause does not pause or restart the three business days. Whether a buyer can end a deal under a subject clause depends on the wording of that clause. For a wider look at the options, see our article on backing out of a real estate contract in BC.
A buyer who is unsure can use the period to arrange financing, an inspection or legal advice. A buyer who decides to cancel can rescind within the period and pay 0.25 percent of the purchase price. A buyer who wants more protection can negotiate subject clauses before signing. A seller can plan for the possibility that a buyer may rescind during the period.
Speak with a lawyer if you are close to the deadline, if you are unsure whether your property is covered, if the contract involves a presale, leased land, an auction or a court-ordered sale, if there is a dispute about the deposit, or if you want help preparing and serving a notice.
Pax Law Corporation helps buyers and sellers with residential real estate purchases, sales, refinances and mortgages in British Columbia from its North Vancouver office. You may also find our guide to BC property transfer tax useful.
It is a legal right under section 42 of the Property Law Act that lets most buyers of residential property cancel a contract of purchase and sale within three business days after the acceptance is signed.
Three business days. Saturdays, Sundays and statutory holidays do not count, and the day the acceptance was signed does not count.
The day after the acceptance of the offer was signed.
The buyer must promptly pay the seller 0.25 percent of the purchase price. On a $1,000,000 purchase price, that is $2,500.
No. It is based on the purchase price set out in the contract. If there is a deposit, the amount comes out of the deposit and the rest is returned to the buyer.
The property's address, parcel identifier or description; the name and signature of the buyer who is rescinding; the name of each seller; and the date the right is exercised.
By registered mail to the seller's address in the contract, by fax to the seller's fax number in the contract, or by email with a read receipt requested to the seller's email address in the contract.
No. Section 7 of the Regulation says the right cannot be waived, so a contract clause that tries to remove it does not take it away.
No. Presales covered by section 21 of the Real Estate Development Marketing Act have their own 7-day rescission right.
No. Property sold at auction or under a court order or court supervision is exempt.
No. The period runs from the date the acceptance was signed, whether or not the contract has subject clauses.
No. The right does not apply once title has been transferred to the buyer.
If you are buying or selling a home in British Columbia and have questions about the rescission period, Pax Law Corporation can review your situation with you.
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Disclaimer: This article is general information only, not legal advice. It reflects British Columbia’s Property Law Act and Home Buyer Rescission Period Regulation as of the date above. Rules change and every situation is different. Reading this article does not create a lawyer-client relationship. Speak with a lawyer about your own circumstances before you act.
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