Just when real estate demand has fallen off a cliff, the provincial government has now given details to their mandatory cooling off period. It would be timelier, if this has to do with the hot weather, but it does not. This is to protect consumers in a hot real estate market where they are compelled to write a no-subject offer. Mandatory means that even if it were a no-subject offer, there is still the option to cancel your offer within 3 days but for a fee of 0.25% of the purchase price. That is, $250 for every $100,000. So for a million dollar home, it would cost you $2,500 to back out.
Of course, when the environment allows, stick with the traditional offers where you include all the conditions to protect yourself. Typically, have conditions set up to allow enough time for you to do the inspection, the appraisal and finalize financing.
This will be rolling out Jan 1, 2023. Click HERE to see the official release.
