British Columbia is the first province to implement a 3-day cooling off period where homebuyers can walk away from a property purchase if they choose to. The cooling off period begins at midnight after an agreement of offer is accepted.

The government said the purpose is to allow the homeowners to arrange finance, conduct a home inspection or have a few extra days to think about the purchase once a deal has been agreed upon. In a red-hot property market, these finer details are sometimes neglected, which can result in buyer’s remorse.

"Housing remains a top concern for people in British Columbia and a top priority for this government. Buying a home is one of the biggest decisions of people's lives. This is an important milestone as we lead the way in protecting people and strengthening public confidence in the real estate market,” Finance Minister Katrine Conroy said in a news release.

However, some realtors are more cynical in their opinion and feel this opens the door for more sophisticated buyers to play the market, "The problem with the three-day rescission period that I see is, for sophisticated buyers, it provides an option value,” said UBC Sauder School of Business professor Tom Davidoff. “The right to bid on a home and then see what else is happening in the market and potentially walk away if you don't like the signals you're seeing over those three days has value."

However, the government has implemented measures to combat buyers abusing the system. For every deal a buyer backs out from, they will be liable to pay the seller of the property a cancellation fee of $250 per $100 000 of the property’s value. For example, if a property is valued at $ 1 000 000 and the buyer pulls out of the deal, the buyer will be liable to pay a cancellation fee of $2500.

Realtors must inform clients of the new provision when engaging with them throughout the buying process. The new cooling-off regulation applies to detached homes, townhouses, and condos. It does not apply to homes on auction or homes on leased land.

Trevor Koot, CEO of the B.C. Real Estate Association expects the new law to have minimal impact on the current market, "Every transaction now has conditions on it, and home inspections, and appraisals, and we're back to a balanced market where buyers can come in and be rational and be reasonable,'' he said.