On the contract of purchase and sale, you might have noticed a few new sections regarding the home buyer rescission period which rolled out in January 2023. 

A rescission period gives a buyer an option to get out of a fully accepted offer within three business days. So that means if it’s a cash offer or a subject free offer, a buyer can still get out of the contract without giving the seller a reason. They would only need to notify the seller in writing before the period expires within three days of the acceptance. So if any reason a buyer chooses to back out of the offer, they would have to pay the seller a rescission fee, which is .25% of the offer price. 

Whereas before we didn’t have this option, we didn’t have a cooling down period. 

So if a buyer had a subject free offer that’s accepted, they were obligated to fully move forward and purchase the property without any room for reconsideration. 

There is a calculator that will calculate the fee and actual date of expiry, so there’s no confusion. Send us a message if you want that calculator. 

Remember, the rescission period is designed to protect you, the buyers, and to give you time to reconsider your decision. It’s always a good idea to fully read and understand the terms and conditions of any purchase or contract before committing.