ICYMI: January 2023 - Homebuyer Protection Plan

Last week the provincial government announced the roll out of their Homebuyer Protection Plan (HPP). This new measure will begin January 2023. Your 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:

Ministry of Finance public announcement

Home Buyer Rescission Period Regulation Order in Council

Disclosure of certain clients of the right of rescission Order in Council

 

Source: Victoria Real Estate Board