Homebuyer Protections To Reduce Risk From Overheated Market

With out-of-control bidding wars and no-condition offers putting people at risk, the BC New Democrat government's plan for homebuyer protection, sometimes referred to as a cooling-off period, will give people peace of mind in the overheated housing market.

‘No surprise’ BC Liberals side with those making windfall profits, says MLA Coulter

CHILLIWACK – With out-of-control bidding wars and no-condition offers putting people at risk, the BC New Democrat government’s plan for homebuyer protection, sometimes referred to as a cooling-off period, will give people peace of mind in the overheated housing market.

Upwards of 70% of offers may be without conditions, according to some industry sources. This puts enormous pressure on people to waive standard conditions such as a home inspection or financing approval.

The BC Liberals have already come out against protecting homebuyers, and would make housing affordability even worse by canceling the speculation tax and eliminating the cap on rent increases.

“It’s no surprise Kevin Falcon is against this after he spent the last decade working for a big developer, who profited from an overheated housing market,” said Dan Coulter, MLA for Chilliwack. “We’ve heard horror stories of many people being pressured into waiving all conditions and taking dangerous risks. That’s a system that only works for the handful of those making a lot of money, not everyday people who want protection when buying a home.”

In one case, a B.C. family was told they needed to spend as much as $100,000 to repair the home they had purchased after being pressured to waive the home inspection on top of offering $440,000 over the asking price.

Legislation is expected to be introduced this spring that would provide a limited time in which buyers can ensure they have inspections completed and time to ensure they have appropriate financing, similar to measures already in place for pre-construction condominium sales.

“People deserve to be protected when buying a home, which is one of the biggest financial decisions of their lives,” said Coulter. “When this is introduced, it will turn down the pressure and give people the breathing room they need to make the right decision for them.”

This is just one part of the BC New Democrat government’s work to make up for 16 years of neglect and inaction on an out-of-control housing market. Other measures include:

  • Accelerating our record investments in building homes people can afford as part of a 10-year plan, with 32,000 homes already built or underway
  • Turning more than 18,000 empty condos in the Lower Mainland into homes for people through the speculation tax
  • Working with local governments to speed up approvals of new homes
  • More new rental homes registered since 2017 than the previous 15 years combined

“While the BC Liberals only want to look out for those at the top, we’re working to build a stronger province for everyone,” said Coulter. “There’s much more work to do, but our plan means building more homes, making it easier for people to find a place they can afford, and protecting people from being pressured into taking dangerous risks.”

 

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