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BC Residential Real Estate — Seller's Guide

Selling Your Home: Understanding Your Contract of Purchase and Sale

What every BC home seller needs to know about reviewing offers, protecting their interests, and getting to a smooth closing.

This guide covers the key stages of a BC residential sale — from reviewing and negotiating offers, through conditions and subject removal, to completion and possession. It also covers common costs, warranty clauses, tenanted properties, and non-resident obligations. 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 the seller, understanding what you are signing — and what obligations you are taking on — is essential before you accept any offer.

Every Term Must Be in Writing

Once both parties sign, the contract is legally enforceable. Verbal agreements — even if made in good faith between agents — are not binding. If it is not written into the contract, it does not exist as a legal obligation.

The Buyer's Rescission Right

Under Section 42 of the Property Law Act, buyers have 3 business days from the final acceptance date to cancel the contract in writing. If they exercise this right, you are entitled to a rescission fee of 0.25% of the purchase price, paid from the buyer's deposit.

Important: The rescission period is buyer-initiated only. As a seller, you cannot cancel the contract during this period simply because you received a better offer or changed your mind. Once you have signed, you are bound by the terms of the accepted offer.

Section 02

Reviewing an Offer — What to Look For

When an offer arrives, price is the first thing most sellers look at — but it is far from the only factor. A lower offer with fewer conditions and a clean closing timeline can often be more valuable than a higher-priced offer that is likely to fall apart.

Purchase Price

Is the price acceptable? A consideration is whether it is supported by recent sales, and what the net proceeds will be after commission, legal fees, and any outstanding mortgage costs.

Deposit Amount

A larger deposit typically signals a more committed buyer. Deposits commonly range around 5% of the purchase price. A low deposit on a high-priced offer can be a consideration — the deposit is the seller's first form of protection if the buyer defaults.

Conditions & Timelines

How many conditions are attached, and how long does the buyer have to remove them? More conditions and longer subject removal periods mean more time the property is effectively off the market, with no guarantee of closing.

Completion & Possession Dates

Do the proposed dates work for the seller's situation? If there is a purchase completing on a specific date or a move-out deadline, mismatched dates can create bridging costs or logistical pressure — countering on dates is common practice when the proposed timeline does not align.

Inclusions & Exclusions

Has the buyer requested specific items? Reviewing whether anything is listed that was intended to be kept or excluded is an important step before acceptance.

Offer Expiry

Offers have a firm expiry time. To keep the offer alive, the seller needs to accept, counter, or decline before that deadline — once it lapses, the offer is gone. Expiry deadlines are worth confirming before seeking advice to avoid accidentally letting an offer lapse.

You are never obligated to accept any offer. As a seller, you have the right to accept, counter, or decline any offer at your discretion — including the highest-priced one. However, once you sign an acceptance, you are legally bound.

Vague language in a contract is a common source of disputes. Once an offer is accepted, both parties are bound by exactly what is written — including any ambiguity. Countering to clarify unclear terms before signing is common practice. Terms that are open to interpretation tend to become problems at the point when options are most limited.

Section 03

Counter-Offers & Negotiation

A counter-offer is not just a tool for negotiating price — it is an opportunity to address anything in an offer that is unclear, incomplete, or open to interpretation. Once you accept, the contract is binding exactly as written.

What Happens When You Counter

A counter-offer immediately cancels the buyer's original offer. They are no longer bound by it, and you cannot revert to the original terms if they decline your counter. Each counter is a fresh proposal — a considered approach before each exchange is common practice.

What You Can Counter On

Any term is negotiable: purchase price, deposit amount, completion or possession dates, subject removal timeline, inclusions, exclusions, and the specific wording of any clause. If a term is not clear enough, rewriting it in the counter so it is unambiguous is an option available to the seller.

Expiry Times Matter

A counter-offer needs a clear expiry time. Allowing enough time for a response while not being locked out of other opportunities for too long is a balance sellers commonly consider. 24 hours is typical in most markets.

Multiple Rounds Are Normal

It is common for negotiations to involve several rounds before reaching agreement. Each new counter is a fresh proposal — being clear on what is and is not acceptable before each exchange is common practice.

Vague language tends to become a problem at the worst possible time.

If a term in an offer could reasonably be interpreted two different ways, disputes commonly surface after subjects are removed, on possession day, or at the Land Title Office. Countering to clarify uncertain terms before acceptance is common practice — once the contract is firm, options to address ambiguity are limited.

Section 04

Handling Multiple Offers

Receiving more than one offer at the same time is a strong position to be in — but it comes with obligations and decisions that require careful handling.

Disclosure Obligations

In BC, you are required to inform all offering parties that competing offers exist — but you are not required to disclose the number of offers or their details. All buyers are bidding blind. Breaching this obligation can create legal exposure.

You Are Not Obligated to Accept the Highest Price

You may choose the offer that best meets your needs — whether that is price, terms, certainty of closing, or timeline. A clean subject-free offer at a lower price may provide more certainty than a higher conditional offer.

Signing Multiple Acceptances

Only one offer can be accepted at a time. Once an acceptance is signed and delivered to a buyer, that contract is binding. Accepting a second offer simultaneously — even inadvertently — creates serious legal liability.

Escalation Clauses

Some buyers may include escalation clauses that automatically increase their offer above competing bids up to a cap. You are not required to accept these. Any escalation clause warrants careful review — including what proof of competing offers, if any, is required under its terms.

Timing and delivery matter. An acceptance is only binding once it has been signed and delivered to the buyer or their agent within the offer's expiry window. Working with a legal professional to confirm the mechanics of acceptance are handled correctly in a multiple offer situation is common practice.

Section 05

Subject-Free Offers — What They Mean for You

A subject-free offer is often described as the best type of offer for a seller — and in many cases it is. But it is not automatically better than a conditional offer, and accepting one from an unprepared buyer carries real risk. The absence of conditions does not mean the buyer is ready to close.

When Subject-Free Works in Your Favour

The buyer has confirmed financing and is genuinely prepared to close
The deal is firm on acceptance — no waiting period, no condition failures
Deposit is fully at risk from acceptance — stronger financial commitment
Property is off the market immediately with certainty
Can outweigh a higher conditional offer when the buyer is clearly prepared

When Subject-Free Can Work Against You

A buyer who cannot secure financing after accepting subject-free may default — leaving you with the deposit but no completed sale, and the cost and delay of relisting
Conditions like financing and insurance confirm the buyer is actually prepared — their absence does not
A firm deal that falls apart is often worse than a conditional one that closes cleanly
Your disclosure obligations remain fully in force regardless of whether the buyer waived inspection

Subjects can protect sellers too. A financing condition, for example, gives the buyer's lender the opportunity to confirm the property and the buyer's ability to close. When that condition is removed, there is more confidence the buyer is genuinely ready. A subject-free offer from an underprepared buyer skips that step entirely — and the seller bears the consequences if they cannot complete.

Your disclosure obligations do not change. Even if a buyer purchases subject-free and waives their right to inspect, your duty to disclose known defects remains fully in force. Accepting a subject-free offer does not protect you from liability for things you knew about and did not disclose.

Section 06

Subjects & Timelines — What Buyers Typically Include

When a buyer includes conditions, the contract is conditional until those subjects are removed in writing by the agreed deadline. Understanding what each condition typically involves helps sellers cooperate appropriately — and avoid inadvertently putting the deal at risk.

Standard Subjects

Financing

The buyer secures satisfactory mortgage financing from their lender. If the contract includes this condition, the buyer's lender or appraiser will typically need access to the property. Being available and cooperative is standard practice — limiting or obstructing access once you have agreed to the condition can put the seller in breach of the agreed terms.

Home Inspection

The buyer obtains and approves a home inspection report. If this condition is included, the inspector will need reasonable access to all areas and systems of the property. It is common practice to have the property accessible and to not limit access once the condition has been agreed to.

Insurance

The buyer obtains satisfactory fire and property insurance on terms acceptable to them. This condition is largely outside the seller's control — but properties with certain histories, materials, or conditions can be difficult to insure. This condition can fail even when everything else is in order.

Title Search

The buyer reviews and approves title, confirming there are no charges, encumbrances, or features that would affect the use or value of the property. Having a lawyer or notary aware of any existing charges on title in advance helps avoid surprises during this review.

Strata Properties

If you are selling a strata unit, buyers will typically add the following conditions on top of the standard ones above. The timeline for delivering strata documents is a negotiated term — what is agreed in the contract governs, and late delivery can extend the buyer's subject removal deadline.

Strata Documents

The buyer reviews Form B, the strata plan, by-laws, rules, financial statements, engineering reports, and meeting minutes — typically from the past two years. Knowing in advance where to obtain these documents promptly once an offer is accepted is a common consideration for strata sellers.

Strata Insurance

The buyer reviews the strata corporation's insurance policy — including premiums, deductibles, and coverage limits — and confirms their ability to obtain personal strata owner insurance. High deductibles in the strata policy are increasingly common and can be a concern for buyers.

Other Conditions You May See

Buyers may include a range of other conditions depending on their circumstances and the property. This list is not exhaustive — any condition agreed to in writing becomes part of the contract.

Independent Legal Advice

The buyer obtains independent legal advice to their satisfaction before removing subjects. Common in strata purchases and more complex transactions.

Subject to Sale

The buyer's purchase is conditional on the sale of their existing home. This is a significant condition from a seller's perspective — it introduces a second transaction outside the seller's control. The terms, including whether the seller retains the right to continue marketing the property, are worth reviewing carefully.

Property Transfer Tax Advice

The buyer obtains professional advice on their PTT obligations, including whether the Additional Property Transfer Tax applies. This is a buyer-side condition and does not typically affect the seller directly.

Review of Tenancy Agreement

If the property is tenanted, the buyer will typically include a condition to review the full tenancy agreement. Delivering it promptly and completely is standard practice — see the Tenanted Properties section for more detail.

Do not accept other offers once subjects are in play. Once you have accepted a conditional offer, the property is effectively under contract. Taking a backup offer is possible in some circumstances but must be handled carefully and transparently to avoid legal issues. Independent legal advice is commonly sought before doing so.

Section 07

The Property Disclosure Statement

Your Property Disclosure Statement (PDS) is typically prepared and reviewed with your agent before your home goes to market. By the time offers arrive, it should already reflect everything you are aware of about the property.

Already Part of the Process

The PDS is typically prepared and reviewed with a licensed real estate professional as part of the listing process. It is not something sellers need to navigate alone — any questions about what to include or how to answer a question are best handled in that conversation before going to market.

If Something Changes Before Acceptance

If you become aware of something new — a leak, a repair, a change to the property — after the PDS is prepared but before an offer is accepted, disclosing it in writing before accepting is common practice. A clear paper trail before acceptance provides better protection than a conversation after the fact. Raising any changes with a licensed professional promptly is the standard approach.

The PDS Becomes Part of the Contract

If the buyer approves the PDS as a condition, it is incorporated into the contract. What you have stated in it becomes a representation you are bound by. If anything in it is no longer accurate by the time of acceptance, consulting a licensed professional is the appropriate step.

"I Don't Know" Is a Valid Answer

If you genuinely do not know the answer to a question on the PDS, saying so is acceptable. Do not guess. A licensed real estate professional can help work through any questions where you are uncertain before the document is finalized.

When in doubt, disclosing in writing before acceptance is common practice.

Disclosing something uncertain is generally a safer approach than not disclosing it. A brief written disclosure before an offer is accepted creates a clear paper trail — buyers who are fully informed before removing subjects have more limited recourse after the fact.

Section 08

The Deposit — What It Means for You

The deposit is the buyer's show of financial commitment. It is held in trust by the buyer's brokerage — not by you — until completion or contract termination. Understanding how it works protects you if things go wrong.

Held in Trust

The deposit is not yours until completion. It is held by the brokerage as a stakeholder — not on behalf of either party. You cannot access it during the transaction, regardless of what happens.

Conditional Deals: Deposit Is Returned

If the buyer's conditions are not met and the contract terminates, the deposit is returned to the buyer in full. This is standard — the deposit is only at risk once subjects are removed or in a subject-free offer.

After Subject Removal: You Are Protected

Once subjects are removed, the buyer is fully committed. If they fail to complete, the deposit is forfeited to you as liquidated damages. This is the seller's primary financial protection against buyer default.

Releasing the Deposit

If a deal collapses after subject removal and the parties disagree on the deposit, the brokerage requires written consent from both parties to release it. If there is a dispute, the matter may proceed to court or arbitration.

Rescission fee: If the buyer exercises their 3-business-day rescission right, the rescission fee of 0.25% of the purchase price is deducted from their deposit and paid to you. The remainder of the deposit is returned to the buyer.

Section 09

Inclusions, Exclusions & What Stays With the Home

Disputes over what stays and what goes are among the most common sources of conflict at closing. Being explicit about exclusions before and during the offer process is a common way sellers protect against last-minute disputes.

Automatically Included

All buildings, improvements, and fixtures
Blinds, curtains, and window coverings
Fixed carpeting
Electrical, plumbing, and heating fixtures
Built-in cabinetry and appliances
TV wall mounts (not the TV itself)
Garage door openers and remotes

Items Sellers Commonly Protect

Any fixture intended to be kept is typically listed as an exclusion in the contract before signing
Common exclusions: chandeliers, specialty light fixtures, built-in bookshelves, custom window coverings
If a buyer has seen an item and expects it to stay, removing it without prior disclosure can create a claim
Replacing excluded fixtures before viewings where possible is a common approach to reduce possession-day disputes

Items a seller intends to keep are typically listed as exclusions in the contract before signing. Adding exclusions after acceptance requires a formal amendment signed by both parties. Vague inclusion language — such as "all appliances" without specifying which — is one of the most common sources of possession-day disputes. Countering to get specific items named before accepting is common practice.

Section 10

Selling a Tenanted Property

Selling a property with a tenant in place adds complexity. Your tenant's rights under the Residential Tenancy Act are not suspended by a sale — and the obligations to both the tenant and the buyer need to be carefully managed.

Disclose the Tenancy

Disclosing to prospective buyers that a tenancy exists is common practice before acceptance. Failing to do so — or misrepresenting the tenancy terms — can expose the seller to legal liability and give a buyer grounds to terminate the contract.

Provide the Tenancy Agreement

Buyers will typically include a condition to review the full tenancy agreement. Delivering it promptly and completely — including any addendums, rent amounts, and lease term details — is standard practice. Incomplete disclosure here can delay or collapse the deal.

Owner's Use Notice

If a buyer wants vacant possession, a notice for personal use can only be served after the sale completes — not before. The required notice period is at least 2 months. Tenants have the right to dispute this with the Residential Tenancy Branch.

Fixed-Term Leases

If the tenancy is fixed-term, the buyer takes subject to that lease. Vacant possession cannot be offered before the lease expires. Being transparent about the lease end date when marketing the property is common practice.

Tenancy law is complex and changes frequently. The BC Residential Tenancy Branch (rtb.gov.bc.ca) is a useful reference, and independent legal advice is commonly sought before making representations to buyers about tenancy end dates, notice periods, or vacant possession timelines.

Section 11

Completion & Possession — What the Contract Typically Requires

Completion is the day title transfers to the buyer. Possession is when they get the keys. The specific terms around each — including timelines, condition of the property, and possession time — are all negotiated and written into the contract. What follows reflects what is commonly included, but every deal is different.

Deliver Signed Transfer Documents

Your lawyer or notary will need to deliver signed transfer documents in advance of the Completion Date. The timeline is coordinated between legal counsel on both sides — late delivery can delay title transfer and put the transaction at risk.

Clear Title

Contracts typically require the seller to deliver title free and clear of financial encumbrances, except those specifically agreed to. Existing mortgages, liens, or charges are generally discharged at or before completion. Your lawyer or notary coordinates this with your lender.

Property Condition on Possession Day

The condition the property is expected to be in at possession — including cleaning, working order of fixtures and appliances, and what is included — is determined by what is written into the contract. These are negotiated terms, not fixed requirements. Reviewing exactly what your accepted offer says before possession day is common practice.

Vacant Possession

The possession time and date are negotiated and written into the contract — noon is common but not universal. Whatever time is agreed to, the commonly expected standard is that belongings are removed and access items are ready for handover by that time. Confirming the exact terms in your accepted offer is important.

Wait for Confirmation of Proceeds

Waiting for confirmation that sale proceeds have been received before allowing possession is standard practice. Providing early access before funds are confirmed carries risk for the seller.