- You may rescind by serving written notice on the developer within 7 days after the later of the purchase agreement date and the date the developer obtained your written acknowledgment of the disclosure statement.
- Notice must be served by delivering a signed copy in person or by registered mail to the developer or its brokerage at the address in the disclosure statement or purchase agreement.
- On rescission the deposit holder must promptly return your deposit.
You signed a presale contract and now you are having second thoughts. The good news is that British Columbia gives presale buyers a short statutory window to cancel. The catch is that it is short, and the way you give notice matters.
This article walks through how long the period is, when the clock starts, how to cancel properly and what you can expect to get back. Because deadlines are strict, speak to a lawyer quickly if you are close to the end of the window.
This article covers the law of British Columbia.
How long the rescission period is
A purchaser may rescind (cancel) by serving written notice on the developer within 7 days after the later of two dates: the date of the purchase agreement, and the date the developer obtained your written acknowledgment that you received the disclosure statement.
The developer must give you the disclosure statement and obtain that written acknowledgment before the purchase agreement is signed. If the acknowledgment was in fact obtained after the agreement date, the later date is the one that starts your 7 days. How days are counted can matter, so confirm the exact last day with a lawyer.
How to cancel properly
Rescission is by written notice. It is served by delivering a signed copy in person or by registered mail to the developer or the developer's brokerage, at the address in the disclosure statement or the purchase agreement.
- Put the notice in writing and sign it.
- Identify the unit, the project and the purchase agreement.
- Use the address in the disclosure statement or purchase agreement, not a general sales office email.
- Keep proof of delivery, such as the registered mail receipt.
- Do not wait until the last day, because notice has to be served within the period.
What you get back
When you rescind, the developer must immediately inform the person holding the deposit, and the deposit holder must promptly return the deposit to you. A developer who receives a deposit must place it with a brokerage, lawyer, notary public or prescribed person, who holds it in trust in a B.C. savings institution.
Interest on a refunded deposit may not be payable unless the contract says so. Check your contract for any wording on interest.
When the 7-day rule does not apply
| Situation | Rescission right |
|---|---|
| Normal case, disclosure statement received before signing | Within 7 days after the later of the agreement date and the date of your written acknowledgment |
| Entitled to a disclosure statement but never received one | At any time, even after title has transferred |
| Did not receive a required amendment about a material fact reasonably relevant to your decision | Up to one year after transfer of title |
| Received an amendment only, having already received a disclosure statement | No rescission right from the amendment alone |
If you rescind after title has transferred, the developer may apply to court for an order that you pay market rent for occupying the unit.
What to do next
If you want out, act now. If you are past the 7 days, your options depend on the facts, such as whether you received a disclosure statement and whether the developer breached the Act. A purchase agreement is not enforceable against you by a developer who has breached any provision of Part 2 of REDMA, subject to exceptions.
- Find your purchase agreement and the date you signed it.
- Find the written acknowledgment of receipt of the disclosure statement and note its date.
- Calculate the last day of the 7-day window and get advice that same day if you can.
- Prepare a signed written notice and serve it in person or by registered mail.
- Confirm who holds your deposit and ask for it to be returned.
- If you cannot cancel under the statutory period, ask whether the developer has breached the Act or whether you and the developer can jointly certify that the agreement has ended and how the deposit is split.
Frequently asked questions
Is the rescission period 7 days from signing?
Not always. It is 7 days after the later of the date of the purchase agreement and the date the developer obtained your written acknowledgment of receiving the disclosure statement.
Can I cancel by email?
The rules call for written notice served by delivering a signed copy in person or by registered mail to the developer or its brokerage at the address in the disclosure statement or purchase agreement. Relying on email alone is risky.
Will I get my deposit back if I rescind?
The developer must immediately inform the deposit holder, and the deposit holder must promptly return the deposit to you. Interest may not be payable unless your contract says so.
What if I missed the 7-day window?
Your options depend on the facts. You may still have rights if you never received a disclosure statement or a required amendment, or if the developer breached the Act. A lawyer can review your documents.
Sources
- Real Estate Development Marketing Act (BC Laws) — bclaws.gov.bc.ca
- Real Estate Development Marketing Regulation, B.C. Reg. 505/2004 — bclaws.gov.bc.ca
- gov.bc.ca – Assignors of pre-sale condos (CSAIR) — www2.gov.bc.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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