The British Columbia Real Estate Association (BCREA) published a white paper making a series of recommendations for the BC government regarding the province’s housing market, the real estate transaction process, and consumer protection..The paper, titled A Better Way Home, is a response to the government’s plans to introduce a mandatory “cooling-off period” in real estate transactions, which the association says it is “deeply concerned” by..In November 2021 the province proposed legislation allowing home-buyers to back out of a property deal with “no or diminished legal consequences,” referring to the policy as a cooling-off period. The province plans to implement the practice this spring..“People looking to buy a home need to know they are protected as they make one of the biggest financial decisions of their lives,” said Selina Robinson, minister of finance..“With this step, we’re moving ahead to protect people and their interests in the real estate market by bringing in a cooling-off period for home-buyers and looking at additional measures to ensure effective safeguards are in place.”.BCREA says it supports measures to increase consumer protection in real estate transactions, however the association says measures must be built on an evidentiary foundation..“A ‘cooling off period’ is not the answer to alleviating the stresses consumers are currently facing in real estate transactions,” said BCREA CEO Darlene K. Hyde..“It won’t stand the test of changing market conditions, regional market differences and doesn’t equally serve buyers and sellers. It also does nothing to address the root of BC’s housing affordability problem; namely, lack of supply.”.The association claims cooling-off periods have been ineffectual at best in other global jurisdictions, doing nothing to alleviate a lack of supply. Instead, BCREA recommends a mandatory “pre-offer period,” preventing offers from being made for a minimum of five business days after a property is listed..BCREA also highlights the importance of helping buyers make informed decisions by ensuring relevant property information is disclosed upon listing as well as raising entry qualification standards for new licensees. Moreover, the association recommends collaboration with real estate sector stakeholders to “establish a process that balances offer transparency for buyers with privacy concerns.”.“If we are to achieve a long-term solution, we require a coordinated, collaborative approach, one that includes all stakeholders — regulators, realtors, builders, and local governments — as equal partners,” said Larry Anderson, president of the Fraser Valley Real Estate Board..Seven day cooling off periods for pre-construction sales of multi-unit development properties, such as condominiums, are currently in place under the Real Estate Development and Marketing Act..BC’s real estate markets experienced significant volatility in 2021..Reid Small is a BC-based reporter for the Western Standard.,rsmall@westernstandardonline.com,.Twitter.com/reidsmall
The British Columbia Real Estate Association (BCREA) published a white paper making a series of recommendations for the BC government regarding the province’s housing market, the real estate transaction process, and consumer protection..The paper, titled A Better Way Home, is a response to the government’s plans to introduce a mandatory “cooling-off period” in real estate transactions, which the association says it is “deeply concerned” by..In November 2021 the province proposed legislation allowing home-buyers to back out of a property deal with “no or diminished legal consequences,” referring to the policy as a cooling-off period. The province plans to implement the practice this spring..“People looking to buy a home need to know they are protected as they make one of the biggest financial decisions of their lives,” said Selina Robinson, minister of finance..“With this step, we’re moving ahead to protect people and their interests in the real estate market by bringing in a cooling-off period for home-buyers and looking at additional measures to ensure effective safeguards are in place.”.BCREA says it supports measures to increase consumer protection in real estate transactions, however the association says measures must be built on an evidentiary foundation..“A ‘cooling off period’ is not the answer to alleviating the stresses consumers are currently facing in real estate transactions,” said BCREA CEO Darlene K. Hyde..“It won’t stand the test of changing market conditions, regional market differences and doesn’t equally serve buyers and sellers. It also does nothing to address the root of BC’s housing affordability problem; namely, lack of supply.”.The association claims cooling-off periods have been ineffectual at best in other global jurisdictions, doing nothing to alleviate a lack of supply. Instead, BCREA recommends a mandatory “pre-offer period,” preventing offers from being made for a minimum of five business days after a property is listed..BCREA also highlights the importance of helping buyers make informed decisions by ensuring relevant property information is disclosed upon listing as well as raising entry qualification standards for new licensees. Moreover, the association recommends collaboration with real estate sector stakeholders to “establish a process that balances offer transparency for buyers with privacy concerns.”.“If we are to achieve a long-term solution, we require a coordinated, collaborative approach, one that includes all stakeholders — regulators, realtors, builders, and local governments — as equal partners,” said Larry Anderson, president of the Fraser Valley Real Estate Board..Seven day cooling off periods for pre-construction sales of multi-unit development properties, such as condominiums, are currently in place under the Real Estate Development and Marketing Act..BC’s real estate markets experienced significant volatility in 2021..Reid Small is a BC-based reporter for the Western Standard.,rsmall@westernstandardonline.com,.Twitter.com/reidsmall
