In British Columbia, a buyer waives their financing condition. After the three-business-day home buyer rescission period has passed, the buyer's pre-approved mortgage is revoked because of a change in employment that occurred after the waiver. What legal recourse does the buyer have?
Correct Answer
D) They remain bound by the contract and must complete or face legal consequences
Once the buyer waives the financing condition, the contract is firm and the risk of losing financing rests on the buyer. Loss of financing does not frustrate the contract, and the statutory rescission right under Property Law Act s. 42 has already expired. The buyer must complete or face the seller's remedies, such as loss of the deposit and a claim for damages.
Why This Is the Correct Answer
This answer is correct. After a waiver the agreement is unconditional. A change in the buyer's employment and the loss of a pre-approval are risks the buyer accepted by waiving, and the rescission period has ended. If the buyer fails to complete, the seller can pursue remedies such as keeping the deposit and claiming damages.
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