Otherwise known as a cooling off period.

This is for consumer/ buyer protection. However, sellers need to be just as aware of this as buyers and also adopt new strategies and practices. 

What you need to know: 
* A 3 day mandatory rescission period on residential sales. This gives the buyer 3 days to withdrawal from a purchase outside of any conditions a buyer may have. 
* Effective January 3, 2023 
* There is a penalty if you exercise your right of rescission. The penalty is 0.25% of the purchase price. ($2,500.00 on a $1M purchase)
* Exemptions: residential property on leased land, properties sold at auction, properties sold under court order or the supervision of a court, assignment of contracts, new development as they already have a 7 day rescission period.
* The rescission period starts the day after acceptance. Your offer is accepted Monday afternoon. 12:00am Tuesday the clock starts ticking and stops at 11:59pm Thursday night.
* Deposits are still negotiable on when they are due.
* How to pay the penalty; if you paid a deposit upon acceptance, your Realtor’s brokerage can submit the payment from that and return the balance to you, if any. If no deposit was paid you can pay your realtor’s brokerage and they will pay the seller or you can pay the seller directly. This is where strategy and new practices will need to be adopted. 
* If the buyer does not pay the penalty the seller needs to take legal action. 
* To rescind your offer it must be done via letter in mail, fax or the easiest and quickest via email. 
* A buyer cannot waive this in a contract. This is new law and you can not eliminate or cross it out of the contract.