What is the rescission fee a buyer must pay to the seller when exercising the Homebuyer Rescission Period right in BC?
Correct Answer
D) 0.25% of the purchase price
Under the Property Law Act, a buyer who rescinds during the Homebuyer Rescission Period must pay 0.25% of the purchase price to the seller as a rescission fee. This amount is intended to discourage frivolous offers while preserving the buyer's right to reconsider.
Why This Is the Correct Answer
Option D is correct because under the Property Law Act amendments establishing the HRP, a buyer who exercises their right to rescind during the 3-business-day rescission period must pay the seller a rescission fee equal to 0.25% of the purchase price. This fee compensates the seller for the disruption and discourages frivolous offers while preserving the buyer's right to reconsider their purchase decision.
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