BCREA Advocates for Homebuyers: Key Changes to Notice Periods for Home Purchasers and Tenants in B.C.
Source: BC Government News August 2nd 2024
To read the full statement from the BC Government, click here.
To read CBC coverage of these latest developments, click here.
To read BCREA’s letter to the BC Government, click here.
To read BCREA and CMBA-BC’s joint press release, click here.
In response to concerns raised by the BC Real Estate Association (BCREA) and industry partners, the BC Government has made significant amendments to recent changes in the Residential Tenancy Act (RTA) regarding the purchase of tenanted properties.
Key Changes to Notice Periods:
- Notice Period Adjustments:
- Previous Requirement: As of July 18, 2024, landlords and homebuyers had to give tenants four months’ notice when evicting for personal or caretaker use.
- New Amendment: Effective August 21, 2024, the notice period has been reduced to three months, specifically for when a landlord issues a notice to end tenancy on behalf of a purchaser.
- Dispute Periods: The period for tenants to dispute a Notice to End Tenancy (NTE) has been shortened from 30 days to 21 days for the three-month notice.
- Rationale for the Change:
- Impact on First-Time Homebuyers: The initial four-month notice period created challenges for first-time buyers, especially those using CMHC programs that require the property to be vacant at possession. The extended notice period also misaligned with mortgage commitments, risking financing disqualification.
- Feedback from Stakeholders: Feedback from the BCREA and other industry stakeholders indicated the need for a shorter notice period to facilitate smoother transactions and align with CMHC requirements.
- Specifics for Landlords:
- Landlords who personally move into a property or have a close family member move in must still provide four months’ notice and a 30-day dispute period for tenants.
- The new occupant must live in the property for at least 12 months. Evictions conducted in bad faith may result in the landlord paying the displaced tenant 12 months’ rent.
BCREA’s Role and Advocacy:
- Industry Feedback: The BCREA, alongside partners like the Canadian Mortgage Brokers Association – BC (CMBA-BC), was instrumental in voicing concerns about the impact of the extended notice periods on first-time homebuyers.
- Government Response: The BC Government’s prompt amendment of the RTA changes demonstrates the effectiveness of BCREA’s advocacy in supporting homebuyers. Trevor Hargreaves, BCREA Senior VP of Government Relations, noted that the initial legislation caused confusion among REALTORS® and the public.
- Call for Collaboration: In its advocacy efforts, the BCREA emphasized the need for a permanent housing roundtable, allowing stakeholders to provide input before new legislation is enacted.
Additional Actions by the Province:
- Support for Renters and Landlords: Recent changes aim to prevent bad-faith evictions and improve rental conditions.
- RTB Improvements: The Residential Tenancy Branch (RTB) has reduced wait times by 54% since November 2022 through staff increases and service improvements. Dispute resolution for unpaid rent or utilities has seen wait times reduced from 10.5 weeks to just over four weeks.
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