Both Buyers & Sellers need to be aware that effective January 3rd of 2023, there is a Home Buyer 3 day Rescission period. This will be a part of all listing & sales contracts from now on.
Why? This idea was started during our lengthy Sellers' market when Buyers had to make quick decisions under pressure when buying a property. We're no longer in a Sellers' market but this legislation is now in place.
What does it mean? This clause is over & above the standard subjects which are included in almost all offers now. Buyers will be given 3 business days following final acceptance of a contract of purchase & sale to change their minds. If they choose to do so, a fee of .25% of the agreed upon purchase price is payable by the Buyer to the Seller. On a $1million property, that charge is $2500.
I don't see this impacting the market as Buyers have more than enough time to do their due diligence & aren't under any extra pressure in most cases, to write an offer. There will always be exceptions but for the most part this is an FYI that we now have an extra step in the Buying & Selling process.