​(BCFSA) Today, the Government of B.C. announced changes to legislation that will remove rental restrictions in strata properties and introduced the new Housing Supply Act which will provide select municipalities with increased powers to address housing development. These changes will have implications for consumers, real estate licensees, and real estate developers in our province. 

Amendments to the Strata Property Act will end all strata rental-restriction bylaws and limit age-restriction bylaws so that the only permitted age restriction is to preserve and promote seniors’ housing through the “55 and over” rule in strata housing. Moving forward, it will not be permissible for a strata to have 19-plus age restrictions; however, “seniors only” strata will still be allowed. 

If approved, the changes to the Strata Property Act would take effect immediately. Bylaws restricting short-term rentals, such as AirBnB, will continue to be allowed. 
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These actions are new steps to deliver homes in B.C., building on B.C.’s 10-year, $7-billion Homes for B.C. plan.

Office of the Premier
News Release
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​To help deliver more good homes for people, the Province is introducing new laws to build the homes people need, make it possible for homes that are vacant to be rented and remove discriminatory age and rental restrictions in stratas that hurt young families.

“B.C.’s housing crisis is stressing out and hurting people while it holds back our economy,” said Premier David Eby. “As a first step in my 100-day plan, we are making changes to deliver more homes for British Columbians, faster. We will work with municipalities to set housing targets and make sure the homes people need get built. For those searching for a home today, there's good news. We're making it possible for thousands of condos that are vacant to be rented out as soon as these new laws pass. For those worried about the future, we're setting out a new way to co-ordinate the efforts of our cities and the Province to build the homes people need quickly.”

The first piece of legislation, the housing supply act, will help speed up housing development and increase supply by giving the Province the power to set housing targets in municipalities with the greatest need and highest projected growth. Targets will be based on information provided by and in consultation with municipalities. The new housing targets will encourage municipalities to address local barriers to construction so that housing can get built faster, including updating zoning bylaws and streamlining local development approval processes.

“I had a good job lined up and even I had a hard time finding a home,” said Omama Shoib, a health-care worker who moved from Alberta to Victoria. “We need more housing options across the board urgently. Some people aren’t as lucky as I was and have to turn down job opportunities or schooling because they can’t find suitable housing. I’m relieved the government is doing more to increase housing so people don’t have to give up on pursuing their goals just because they can’t find a place to live.”

The Province will monitor progress and work with municipalities to help address barriers to meeting housing targets and to support the increased community needs associated with targeted growth. The act enables compliance options as a last resort, should municipalities with the highest need struggle to create the conditions that are necessary to ensure housing gets built.

If passed, the housing supply act is scheduled to be brought into force in mid-2023. To support implementation, the Province will continue to help local governments speed up local approval processes through the continued implementation of the Development Approvals Process Review and work underway to accelerate provincial approvals. 

In addition, the Province is making amendments to the Strata Property Act to end all strata rental-restriction bylaws and to limit age-restriction bylaws so that the only permitted age restriction is to preserve and promote seniors' housing through the “55 and over” rule in strata housing. Some buildings have “19+ only” age restrictions that mean couples starting a family have to plan to move out as soon as they become pregnant. Stratas will be able to appear at the Residential Tenancy Branch to evict problem tenants and recover costs of those appearances. 

“There’s a lot of things on your mind when you are getting ready to start a family. It can be a very stressful time,” said Sarah Arnold, an expectant mother and condo owner in Victoria. “The last thing you need to think about when you’re preparing to welcome a newborn is finding a new place to live. These unjust age restrictions have hurt a lot of families, and I am pleased to see the Province is taking action to make sure no more couples have to uproot their lives and leave their homes if they decide to start a family.”

In areas where government has data through the Speculation and Vacancy Tax, there are approximately 2,900 empty condos that cannot be rented out because strata rules prevent them from renting out their condo, and government expects there are more empty units in strata buildings in other parts of the province. This amendment will enable owners to rent out these badly needed homes immediately. Government also expects that some owners in strata buildings would choose to rent out a room in their condo if they were given the opportunity to do so.

“Rules that prevent families with children from living in a home or prevent people from renting the unit they own are no longer acceptable in our current housing market,” said Murray Rankin, Attorney General and Minister Responsible for Housing. “These amendments will open up more rental and homeownership options for people at a time when they’re needed the most.”

If approved, the changes to the Strata Property Act would take effect immediately. Bylaws restricting short-term rentals, such as AirBnBs, will continue to be allowed.
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These actions are new steps to deliver homes in B.C., building on B.C.’s 10-year, $7-billion Homes for B.C. plan.

Royal Bank, CIBC, TD, Laurentian and more raise rate

FINANCIAL POST / CANADIAN PRESS - Canada’s commercial banks began announcing hikes to their prime rateWednesday after the Bank of Canada raised its key interest rate by half a percentage point.

By Wednesday afternoon Royal Bank of Canada, CIBC, TD Canada Trust, Laurentian Bank of Canada, Bank of Nova Scotia, Bank of Montreal, Equitable Bank and HSBC Bank Canada had all announced they were increasing the prime rate by 50 basis points to 5.95 per cent from 5.45 per cent, effective Oct. 27.

The central bank surprised markets by hiking less than expected Wednesday and signalled it was drawing closer to the end of what’s been one of the fastest rate hike cycles in its history.
However, it also made it clear more hikes are to come as inflation stays hot.

“We are getting closer to the end of this tightening phase but we’re not there yet,” Bank of Canada governor Tiff Macklem said during the news conference Wednesday.

Since March, the central bank has raised its key interest rate six consecutive times, bringing it from 0.25 per cent to 3.75 per cent, and Canadian banks’ prime rate has risen too.

Royal Bank, CIBC, TD, Laurentian and more raise rate

BFSA (NEWS RELEASE) - In January 2023 the B.C. government will implement changes to the Property Law Act to make the Home Buyer Rescission Period (“HBRP”) or ‘cooling-off period’ mandatory for residential real estate transactions. 

In the months leading up to the HBRP, BCFSA’s role as the provincial regulator for the sector is to provide real estate licensees with the details they need to understand HBRP and navigate this new process with clients. Updated regulatory information, practice guidelines, and FAQs will accompany newsletter articles, e-mails, and targeted webinars for trading services licensees so they can help consumers to be informed during a sale. 

We’re also developing materials to inform buyers, sellers, and the public about how the HBRP will work and what they can expect. Resources including updated buyer and seller guides will help consumers understand how the HBRP will impact home sales and will be made available on BCFSA’s website to improve consumer awareness. 

The HBRP will allow homebuyers to rescind a contract to purchase residential real estate within the set period, even if the contract does not include conditions. It will begin the next business day after the final acceptance of an offer. The rescission period will be in effect for three business days and cannot be waived by either the seller, buyer, or their representatives. During this period, homebuyers can still legally withdraw from the purchase without justification at the cost of a rescission fee equal to 0.25 per cent of the purchase price. 

The HBRP and any subject conditions in the contract of sale both start counting down at the same time and run concurrently if subject conditions have been included in the contract of sale. 
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BCFSA recommends that homebuyers speak with their real estate licensees to understand the requirements of the HBRP, so ensure you keep up to date with information as we provide it.

(REBGV - Aug 9 ,2022)
Key facts
The homebuyer protection period basics

• The period will be effective January 1, 2023.
• Buyers will have three business days to back out of a residential purchase after signing the contract.
• This applies to all contracts, regardless of subjects. We’re asking the government for clarity on what constitutes a “rescission” (cancellation).
• The period is mandatory and can’t be waived.
• Buyers who back out of a contract within this three-day period will have to pay a rescission fee of 0.25%. For example, if the purchaser exercises the right of rescission on a $1-million home, they’d be required to pay the seller $2,500.
• The rescission fee is paid to the seller.
• The enforcement mechanism for the rescission fee, and for any deposits that may need to be returned, is unclear at this time.
• Realtors must provide general information on the period to all clients through the Disclosure of Representation in Trading Services.

​Deposits

• If a deposit is held in trust, brokerages may release it upon rescission.
• If there’s a balance, it’s returned to the buyer, regardless of what’s provided in the contract.

Exemptions and waivers
While the period can’t be waived, there are narrow exemptions, including sales:

• Subject to section 21 of the Real Estate Development Marketing Act.
• Of residential real estate located on leased land.
• Of leasehold interest in residential real estate.
• At auction.
• Under a court order or supervision of a court.

Residential real estate defined
The homebuyer protection period will apply to:

• detached homes;
• semi-detached homes;
• townhouses;
• apartments in a duplex, triplex or other multi-unit dwelling;
• residential strata lots;
• manufactured homes that are affixed to land; and
• cooperative interests that include a right of use or occupation of a dwelling.

The new period doesn’t apply to presale properties, which already subject to a rescission period under the Real Estate Development Marketing Act.

The notice of rescission

• Homebuyers must serve rescission notice to the seller through registered mail, fax, email with read receipt, or personal service.
• The notice must contain the address, PID or description of the property, the names and signature of the buyer(s), name of the seller(s), and the date of notice.

Additional Disclosure
Realtors must also provide an additional mandatory disclosure when presenting an offer to a client, outlining:

• that the protection period can’t be waived,
• the rescission period,
• the dollar amount of the rescission fee,
• deposit handling, and
• the homebuyer protection period exemptions.