BC Residential Real Estate — Buyer's Guide
Buying a Home: Understanding Your Contract of Purchase and Sale
What every BC home buyer needs to know about writing offers, protecting your interests, and getting to a smooth closing.
This guide covers the key stages of a BC residential purchase — from writing and negotiating an offer, through conditions and subject removal, to completion and possession. It also covers deposits, inclusions, the Property Disclosure Statement, common costs, and Property Transfer Tax. Use the navigation above to jump to any section.
Section 01
What Is the Contract of Purchase and Sale?
The Contract of Purchase and Sale (CPS) is the legally binding document that governs every residential real estate transaction in British Columbia. As a buyer, understanding what you are signing — and what you are committing to — is essential before you put pen to paper.
Everything Must Be in Writing
Once both parties sign, the contract is legally enforceable. Verbal agreements — however well-intentioned — are not binding. If something is important to you, it needs to be written into the contract before you sign. If it's not in there, it doesn't exist as a legal obligation.
Your Right to Rescind
Under Section 42 of the Property Law Act, you have the right to cancel the contract within 3 business days of the final acceptance date by serving written notice to the seller. If you exercise this right, a rescission fee of 0.25% of the purchase price applies and is deducted from your deposit.
The rescission right is yours — but it costs you. It exists as a short cooling-off window, not a free exit. Once that 3-business-day period passes — and certainly once subjects are removed — you are fully committed. Plan accordingly.
Section 02
Key Dates — How a Deal Moves Forward
Every BC real estate transaction moves through a sequence of dates and deadlines. All of these are negotiated and written into the contract — the figures below are typical ranges, not fixed rules. Missing a deadline can cost you the deal or your deposit.
24–48h
Typical offer expiry window
5%
Typical deposit amount
Upon SR
Deposit typically due upon subject removal — or within 24hrs of acceptance on subject-free offers
7–10
Typical subject removal period (business days)
4–6 wks
Typical completion timeline after subject removal
1
Offer Submitted
You present your written offer with a clear expiry time — typically 24 to 48 hours. The seller can accept, counter, or let it expire. Be ready to respond quickly if they counter.
2
Final Acceptance Date
The last party signs and delivers the contract. Your 3-business-day rescission period begins from this date. All condition deadlines are measured from here — know your subject removal date the moment the deal is accepted.
3
Deposit Due
The deposit is most commonly due upon subject removal — once you have done your due diligence and are committed to the purchase. On subject-free offers, it is typically due within 24 hours of acceptance since there is no subject removal period. The exact timing is a negotiated term written into the contract — confirm it before the deal is accepted and have your bank draft ready. The deposit is paid to the brokerage and held in trust.
4
Subject Removal Deadline
All conditions must be waived or declared fulfilled in writing by the agreed deadline. If they are not, the contract typically terminates and the deposit is returned. The subject period is the window for completing due diligence — inspection, financing confirmation, document review — so starting early is common practice.
5
Completion Date
Title transfers at the Land Title Office. Funds need to be with your lawyer or notary well in advance — typically at least two business days prior. Avoid weekend completion dates, as lenders typically do not fund on Saturdays or Sundays.
6
Possession Date
You receive the keys. The possession time and date are negotiated and written into the contract. Noon is common but not universal — confirm exactly what your contract says. The seller will not allow access until sale proceeds are confirmed received.
Adjustment Date is typically the same as the Possession Date. This is when property taxes, strata fees, utilities, and other charges are prorated between buyer and seller. Your lawyer or notary prepares a Statement of Adjustments.
Section 03
Writing an Offer — What Goes In
An offer is more than just a price. Every term you put in writing becomes a negotiated position — and anything left vague becomes a potential dispute. Think through each element carefully before your offer is presented.
Purchase Price
The price you are willing to pay. Consider what the market supports, not just what you want to pay. A price that is too far below market value may not be taken seriously — or may prompt a seller to look at other offers instead of countering.
Deposit Amount
A larger deposit signals commitment and can strengthen your offer. It is typically 5% of the purchase price, paid by bank draft within 24 hours of acceptance — or upon subject removal. It is held in trust by the brokerage, not the seller.
Dates
Offer expiry, subject removal deadline, completion date, and possession date — all negotiated. Dates that work for the seller as well as you will make your offer more competitive. Know your own timeline before you write.
Inclusions & Exclusions
Specify everything you expect to be included — appliances, fixtures, outdoor structures. Do not assume. If it matters to you, name it explicitly. See the Inclusions section for more detail.
Conditions (Subjects)
The conditions you need to fulfill before you are legally committed. Financing, inspection, insurance, and title are the most common. See the Your Subjects section for a full breakdown.
Terms
A custom clause schedule attached to most offers for terms beyond the standard contract — specific inclusions, parking stall assignments, repair requirements, or additional protective clauses. Review it carefully. It is part of the legally binding contract.
Vague language in a contract is a common source of disputes. Once the contract is signed, both parties are bound by exactly what is written — including any ambiguity. Countering to clarify unclear terms before acceptance is common practice.
Section 04
Counter-Offers & Negotiation
It is rare for an offer to be accepted exactly as written. The seller may counter on price, dates, inclusions, or other terms. Understanding how counter-offers work helps you negotiate clearly without losing ground — or the deal.
A Counter Voids Your Original Offer
When a seller counters, your original offer is cancelled. The prior terms are no longer on the table for either party. You can accept the counter, counter again, or walk away — but you cannot revert to your original offer.
Every Counter Is a New Offer
Each counter-offer is a fresh proposal with its own expiry time. Multiple rounds are normal — do not be unsettled by back-and-forth. Stay focused on the terms that matter most to you.
Respond Within the Deadline
Counter-offers have firm expiry times. If you miss the deadline, the counter lapses and the seller is free to move on. Stay available and respond promptly — agility matters during negotiation.
Use Counters to Clarify, Not Just Negotiate Price
If a seller's counter includes vague language, an unclear inclusion, or a term that is difficult to interpret — countering back with clearer wording is common practice. Accepting terms that are open to interpretation can lead to disputes once the contract is firm.
The seller has every right to counter, decline, or accept any offer at their discretion — including yours. Their motivations may not be purely about price. Dates, certainty of closing, and fewer conditions can matter as much as the number on the page.
Section 05
Multiple Offer Situations
In competitive markets like Metro Vancouver and the Fraser Valley, you may find yourself competing against other buyers on the same property. Understanding how this works — and the rules around it — helps you make informed decisions under pressure.
Blind Bidding
In BC, you will not have access to the details of competing offers. You are bidding without knowing what others have proposed. Your offer needs to stand on its own merits — price, terms, and certainty of closing all count.
What Makes an Offer Competitive
Price is important but not everything. Sellers weigh deposit size, number of conditions, subject removal timeline, and flexibility on dates. A clean, well-structured offer at a slightly lower price can outperform a higher one that is heavily conditional.
Escalation Clauses
An escalation clause automatically increases your offer by a set amount above any competing offer, up to a stated cap. Not all sellers accept them, and they carry strategic risks — including revealing your maximum. Understand how they work before including one.
The Seller's Right to Choose
Sellers are not obligated to accept the highest offer — or any offer. They may choose based on terms, certainty, or timeline. Do not assume a higher price guarantees acceptance. And do not assume you have lost simply because you are not the highest price.
You will be told if competing offers exist — sellers in BC are required to disclose that multiple offers have been received. However, they are not required to share the number of offers or any details. Make your best offer based on what works for you, not on speculation about what others might be doing.
Section 06
Subject-Free Offers — Risks & Considerations
A subject-free offer has no conditions attached. No financing. No inspection. No PDS review. Sellers often prefer them — but "often" is not "always," and the risks to you as a buyer are real and need to be fully understood before you consider writing one.
Why Sellers Often Prefer Them
- The deal is firm on acceptance — no waiting period
- No risk of the deal collapsing due to failed conditions
- Deposit is at risk from acceptance — stronger commitment signal
- In a competitive market, can outweigh a higher conditional offer
The Risks to You
- No inspection — unknown defects become your problem after closing
- No financing condition — if your lender declines, you risk losing your deposit
- No way out — you are legally bound from the moment of acceptance
- Deposit is immediately at risk — no subject removal period to reconsider
- You still have the 3-business-day rescission right, but it costs 0.25%
Subjects can actually reassure a well-informed seller. A financing condition, for example, gives both sides confidence the buyer's lender has reviewed the property and the buyer can genuinely close. When subjects are removed, the seller knows you have done your homework. A subject-free offer from an underprepared buyer is a risk for the seller too — some sellers understand this and will look favourably on a conditional offer from someone clearly prepared over a subject-free offer that feels uncertain.
This is not a recommendation. Subject-free offers carry real financial and legal risk. They may be considered by experienced buyers with confirmed financing and strong familiarity with the property and property type. Always seek independent legal and financial advice before proceeding without conditions.
Section 07
Your Conditions (Subjects)
Conditions are written into the offer for your benefit — you alone decide whether to waive them or declare them fulfilled. They are your due diligence window. Use the time well. All conditions must be resolved in writing by the agreed deadline, or the contract terminates and your deposit is returned.
Standard Subjects
Financing
Securing satisfactory mortgage financing from your lender. Even with a pre-approval in hand, this condition protects you if the lender's appraisal comes in low or if something about the specific property affects their willingness to lend. The seller is typically required to allow appraiser access to the property under this condition.
Home Inspection
Obtaining and approving a home inspection report. This is the opportunity to understand the physical condition of the property before becoming committed. Inspectors are commonly booked early in the subject period rather than leaving it to the final days.
Insurance
Obtaining satisfactory fire and property insurance at acceptable rates. Some properties can be difficult or expensive to insure — older homes, properties with certain construction types, or those with a known history. Confirm insurability early, as this condition can fail even when everything else looks good.
Title Search
Reviewing and approving title to confirm there are no charges, encumbrances, or features that would affect the use or value of the property. Your lawyer or notary conducts this review. It is your responsibility to be satisfied with title before removing this condition.
Strata Properties
If purchasing a strata unit, additional conditions are commonly included on top of the standard ones above. The seller is typically required to deliver strata documents within a negotiated timeframe — if delivery is late, condition deadlines are typically extended by the same number of days.
Strata Documents
Reviewing Form B, the strata plan, by-laws, rules, financial statements, engineering reports, and meeting minutes — typically the past two years. Look carefully for outstanding levies, depreciation report concerns, pending special assessments, and any history of unresolved disputes. This review is one of the most important steps in a strata purchase.
Strata Insurance
Reviewing the strata corporation's insurance policy — premiums, deductibles, and coverage limits — and confirming the ability to obtain personal strata owner insurance. High deductibles in the strata policy can represent significant personal financial exposure and are worth factoring into a purchasing decision.
Other Conditions You May Include
Depending on your circumstances and the property, you may want to include additional conditions. This list is not exhaustive — any condition you and the seller agree to in writing becomes part of the contract.
Independent Legal Advice
Obtaining independent legal advice to your satisfaction before removing subjects. Particularly useful in strata purchases, complex transactions, or any deal where you want a lawyer's review of the full contract before committing.
Subject to Sale
Making your purchase conditional on the successful sale of your current home. This condition gives you an exit if your existing property does not sell in time — but be aware that sellers may be less willing to accept it, or may insist on the right to continue marketing the property while your condition is in place.
Property Transfer Tax Advice
Obtaining professional advice on your PTT obligations before removing subjects — particularly relevant for first-time buyers or those purchasing newly built homes where exemptions may apply. See the PTT section for more detail.
Review of Tenancy Agreement
If the property is tenanted, include a condition to review the full tenancy agreement before committing. Tenant rights survive the sale — you need to know exactly what you are purchasing. See the Tenanted Properties section for more detail.
Subject removal is the point of no return.
Once subjects are removed in writing, the buyer is legally committed to completing the purchase. There is no further right to cancel without financial and legal consequences. Financing confirmation, due diligence completion, and readiness to close are typically in place before subjects are removed.
Section 08
The Property Disclosure Statement
The Property Disclosure Statement (PDS) is a document completed by the seller disclosing what they know about the property. Reviewing it carefully is an important part of your due diligence — but it has limits you need to understand.
What It Covers
The PDS asks the seller to disclose what they know about the property — things like water issues, structural concerns, unpermitted work, or prior use. If the seller approves it as a condition and you accept it, it becomes part of the contract.
What It Does Not Cover
The PDS only reflects what the seller knows and chooses to disclose. It is not a substitute for a home inspection — sellers may genuinely be unaware of defects, and the PDS does not guarantee the property's condition. Read it carefully, but do not rely on it alone.
Changes Before Acceptance
If the seller becomes aware of something new between preparing the PDS and accepting your offer, they should disclose it in writing before acceptance. If you receive an updated disclosure or a written addendum, review it carefully before signing anything.
"I Don't Know" Is a Valid Answer
Sellers are permitted to answer "I don't know" to questions on the PDS. This is not necessarily a red flag — but it is worth noting. If there are several unknowns in areas that concern you, factor that into your decision about whether and how to proceed.
The PDS is a starting point, not an endpoint. It is typically reviewed alongside the inspection, title search, and — for strata properties — the strata document review. Questions answered "I don't know" are commonly followed up on during the subject period rather than after conditions are removed.
Section 09
The Deposit — What It Means for You
The deposit is your show of financial commitment. It is held in trust by the brokerage — not by the seller — and it is the primary financial protection the seller has if you default. Understanding exactly when it is at risk is important.
Held in Trust
The deposit is held by the brokerage as a stakeholder — not on behalf of either party. It is not the seller's money until completion. It is typically paid by bank draft within 24 hours of acceptance, or upon subject removal.
While Conditions Are in Place
If your conditions are not met and the contract terminates, your deposit is returned in full. The deposit is only truly at risk once subjects are removed — or from the moment of acceptance in a subject-free offer.
After Subject Removal
Once subjects are removed, the deposit is at risk. If you fail to complete the purchase, it is typically forfeited to the seller as liquidated damages. This is not a technicality — it is a real financial consequence of not completing a firm deal.
If There Is a Dispute
If a deal collapses and the parties disagree on who is entitled to the deposit, the brokerage requires written consent from both parties to release it. If no agreement is reached, the matter may proceed to court.
Rescission fee: If you exercise your 3-business-day rescission right, the rescission fee of 0.25% of the purchase price is deducted from your deposit and paid to the seller. The remainder is returned to you. This is not a free cancellation.
Section 10
Inclusions, Exclusions & Schedule A
What stays with the home and what the seller takes with them needs to be clearly stated in writing. Disputes over inclusions are one of the most common sources of conflict at closing — and they are almost always avoidable.
Generally Included
- All buildings, improvements, and fixtures
- Blinds, curtains, and window coverings
- Fixed carpeting
- Electrical, plumbing, and heating fixtures
- Built-in cabinetry
- TV wall mounts (not the TV itself)
- Garage door openers and remotes
Not Automatically Included
- Fridge, stove, washer, dryer — list them by name
- Hot tubs, sheds, outdoor structures
- Specialty light fixtures or chandeliers
- Any item the seller has specifically excluded in writing
- Items that were not present during viewings
Name it specifically — or expect a dispute. "All appliances" is vague. List the fridge, stove, washer, and dryer individually. If you saw something during a viewing and expect it to be there on possession day, it needs to be in the contract. Vague inclusion language is one of the most common possession-day disputes. If the seller's counter uses unclear language on inclusions, counter back with specific wording before accepting.
Schedule A
Schedule A is a custom clause schedule attached to most BC offers. It is where specific inclusions, parking stall or storage locker assignments, repair requirements, and any additional terms beyond the standard contract are written. It forms part of the legally binding contract — read it as carefully as the main contract.
Section 11
Buying a Tenanted Property
When you purchase a home with an existing tenant, you acquire both the property and the tenancy agreement. Tenant rights under BC's Residential Tenancy Act are not affected by a sale — and they affect your plans for the property in ways you need to understand before removing subjects.
You Inherit the Tenancy
The sale does not end the tenancy. You step into the seller's shoes as landlord — with all the same obligations. The tenant's existing lease terms, rent amount, and rights remain fully in force after the sale completes.
Vacant Possession Is Not Automatic
If you want to occupy the property yourself, you can serve notice for owner's use — but only after the sale completes, and only with a minimum of 2 months' written notice using the official RTB form. The tenant has the right to dispute this with the Residential Tenancy Branch.
Fixed-Term Leases
If the tenancy is fixed-term, you cannot end it early simply because you bought the property. Know the lease end date before you commit — it directly affects when you can occupy or redevelop the property.
Review the Full Tenancy Agreement
Include a condition to review the complete tenancy agreement before removing subjects — including rent amount, lease term, any addendums, and the payment history. What you are inheriting needs to be fully understood before you are committed.
Tenancy law is complex and changes frequently. Before making decisions about a tenanted purchase — including what representations a seller may have made about vacant possession — consult a lawyer or the BC Residential Tenancy Branch at rtb.gov.bc.ca.
Section 12
Completion & Possession
Completion is the day title transfers into your name. Possession is when you get the keys. All terms around both dates are negotiated — here is what to expect and how to prepare.
1
Deposit Funds Early
Get your funds to your lawyer or notary well before the Completion Date — typically at least two business days prior. Last-minute wire transfers can fail or be delayed. Late funds can delay or derail completion entirely.
2
Documents Signed and Exchanged
Your lawyer or notary will prepare transfer documents for signing. The seller's legal team delivers their signed documents in advance. Both sides need to be prepared and responsive — delays on either side affect the entire timeline.
3
Title Transfers
Your lawyer or notary lodges the transfer documents at the Land Title Office. Title officially moves into your name on the Completion Date. Insurance should be in place from this date — risk transfers to you at 12:01 a.m. on Completion Day.
4
Proceeds Released to Seller
Once title is confirmed, funds are released to the seller. Possession typically follows on the agreed date and time — the seller will not hand over keys until proceeds are confirmed. Confirm the exact possession time written into your contract.
Avoid weekend completion dates. Lenders typically will not fund mortgages on Saturdays or Sundays. If funds cannot be advanced, completion cannot happen — and you may be in breach. Choose a midweek completion date wherever possible.
Section 13
Default — What Happens If Something Goes Wrong
Both buyers and sellers have obligations once a deal is firm. Understanding what happens if either side fails to complete helps you protect yourself — and know your options if things go sideways.
If You Default as the Buyer
If you fail to complete after subjects are removed, your deposit is typically forfeited to the seller as liquidated damages. Beyond that, if the seller suffers additional losses — having to relist at a lower price, carrying costs, legal fees — they may have grounds to pursue you for the difference. BC courts have awarded damages exceeding the original deposit in buyer default cases.
If the Seller Defaults
If the seller refuses to complete a firm deal, you have legal remedies. You can apply to the BC Supreme Court for specific performance — an order compelling them to complete the sale at the agreed price. Courts regularly grant this in real estate transactions. You may also be entitled to sue for financial losses. If a seller is refusing to complete, seek legal advice immediately.
A firm deal is a legal commitment — for both sides.
Once subjects are removed, neither party can simply walk away without consequences. Concerns arising after subject removal — about financing, the inspection, or other matters — are typically addressed through legal counsel rather than by stopping communication or assuming the deal will resolve itself.
Section 14
Common Protective Clauses
The following clauses are not part of the standard BC contract — they are additions commonly included in Schedule A or the contract terms. Not every offer includes them, and their inclusion depends on how the offer is written and what the parties agree to.
These are additions only — not standard terms. Their inclusion depends on how the offer is written. A licensed legal professional can help clarify which clauses may be appropriate for a specific transaction.
No Unpermitted Work
A warranty from the seller that no work requiring permits was done without proper approvals. If unpermitted work is discovered after closing, the seller may be required to obtain permits and remedy deficiencies at their expense. Only meaningful if the seller agrees to it — and only enforceable if it is in writing.
No Illegal Substances
A warranty that the property was not used for the growth or manufacture of illegal substances during the seller's ownership. Intended to provide recourse after closing if this turns out to be false. Not automatically part of the standard contract.
Speculation & Vacancy Tax Indemnity
A clause confirming the seller is responsible for any SVT obligations arising from their period of ownership. Protects you from inheriting a tax liability that predates your ownership.
Strata Communications
For strata purchases, a clause requiring the seller to forward all strata communications received between acceptance and completion. Ensures you are not blindsided by a special levy notice or significant strata decision made after you accepted the offer.
Section 15
Property Transfer Tax — What You'll Owe
Property Transfer Tax (PTT) is a provincial tax payable by the buyer on every real estate transaction in BC. It is calculated on the fair market value of the property and can be a significant closing cost — know what you owe before you write your offer.
| Purchase Price Portion | Tax Rate | Example: $900,000 Home |
|---|---|---|
| First $200,000 | 1% | $2,000 |
| $200,001 to $3,000,000 | 2% | $14,000 (on $700,000) |
| Above $3,000,000 | 3% | — |
| Residential portion above $3,000,000 | Additional 2% (5% total) | — |
| Total PTT on $900,000 | — | $16,000 |
Exemptions That Can Save You Thousands
Depending on your situation, you may qualify for a full or partial PTT exemption. These thresholds are subject to change — always confirm current eligibility with your lawyer or notary before closing.
First-Time Buyer Exemption
- Full exemption if purchase price is under $835,000
- Partial exemption between $835,000 and $860,000
- Property must be your principal residence
- Must be a Canadian citizen or permanent resident
- Must never have owned a principal residence anywhere in the world
Newly Built Home Exemption
- Full exemption on newly built homes up to $1,100,000
- Partial exemption between $1,100,000 and $1,150,000
- Property must be used as your principal residence
- Can save tens of thousands of dollars — confirm eligibility early
PTT thresholds and eligibility rules are set by the Province of BC and are subject to change. The Additional Property Transfer Tax may also apply depending on your residency status. Confirm all PTT obligations with your lawyer or notary well before your Completion Date.
Section 16
Your Costs as a Buyer
The purchase price is just the starting point. Budget for these additional costs before you write your offer — not after.
| Cost Item | Notes |
|---|---|
| Property Transfer Tax | Calculated on fair market value. Exemptions may apply — see PTT section above. |
| Lawyer or Notary Fees | For title search, transfer documents, and closing coordination. Typically $1,000–$2,000+ depending on complexity. |
| Mortgage Costs | Lender's legal fees, appraisal (if required), and any mortgage insurance premiums (CMHC if applicable). |
| Land Title Registration Fees | Fee to register the transfer and mortgage at the Land Title Office. |
| Home Inspection | If included as a condition. Typically $400–$700+ depending on property size and type. |
| Fire & Property Insurance | Must be in place from the Completion Date. Get a quote before removing subjects — some properties are harder to insure. |
| GST | Applies to newly built homes. Unless otherwise specified in writing, the purchase price is assumed to include any applicable GST. |
| Adjustment Credits / Debits | Property taxes, strata fees, and utilities are prorated to the Adjustment Date. You may owe or receive a credit depending on what the seller has prepaid. |
Survey Certificate: Some lenders require a survey certificate confirming the property boundaries and any encroachments. Confirm with your lender whether this is needed before your Completion Date.
Summary
Key Takeaways Before You Sign
Read Everything
Every term in the contract — including Schedule A — is legally binding once both parties sign.
Get It Specific
Vague language is your risk. Use counter-offers to clarify anything unclear before you accept.
Know Your Deadlines
Subject removal, deposit, completion, and possession all have firm timelines. Missing them can cost you the deal or your deposit.
Use Your Subject Period
Inspection, financing, insurance, title, strata documents — do not leave your due diligence to the last day.
Get Legal Advice
A lawyer or notary is essential to a smooth closing — especially for strata purchases or complex deals.
Budget All Costs
PTT, legal fees, inspection, insurance, and GST add up. Know your full cost before you write the offer.
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