By Baldev S. Gill, Chief Executive Officer
At mid-day yesterday, the B.C. Government, via Minister of Finance Selina Robinson’s office, issued its intent to introduce legislation requiring cooling off periods for real estate transactions involving residential resale and newly built homes. This change is expected to be similar to the cooling off period in place for pre-construction condominium sales and will be introduced in spring 2022.
This surprise announcement was made without broad consultation with industry stakeholders and experts. As BCREA indicated in a news release issued today, this announcement is premature and lacks a clear understanding of how this proposed cooling off period will improve homebuyer protection.
We echo what BCREA has indicated, in that we believe policies addressing market conditions should consider the following: interests of all parties in a transaction; changing market trends; regional impacts, while considering any potential unintended consequences; and should also include a defined process to monitor efficacy of the newly proposed measures. Without these details, it’s not clear whether the purpose of improving homebuyer protection will be achieved.
FVREB has already started a dialogue and discussion with BCREA, and we will be working closely with them, not only to express our dissatisfaction assertively and constructively with the manner in which this announcement was made, but also to provide the necessary context, insights and information needed for government to consider, prior to any next steps on this proposed legislation.
We will also be working through our Government Relations Committee to proactively reach out to MLAs using soon-to-be prepared speaking points and collateral, to emphasize the pitfalls, drawbacks, and possible unintended consequences of this proposed legislation, from a boots-on-the-ground perspective.
At any time, please feel free to share your thoughts and perspectives by emailing us at: communications@fvreb.bc.ca.
Please continue to stay safe, be kind, and be well.
Resources
- BC Government news release
- BCFSA’s Real Estate Enhanced Consumer Protection Terms Of Reference
- BCFSA’s Cooling Off Periods and Consumer Protection FAQ
- BCFSA’s consultation webpage