Below are answers to common questions buyers have about the legal process, timing, and costs involved in purchasing a home in British Columbia.
Buying a home involves several legal and financial steps, often within short timelines. Understanding the basics early can help you avoid delays, reduce stress, and make informed decisions throughout the purchase process.
Do I need a written contract?
Yes. In British Columbia, a contract dealing with land must be in writing to be legally enforceable. Verbal agreements are not sufficient. The Contract of Purchase and Sale sets out the agreed purchase price, key dates, subject conditions, included items, and the responsibilities of both the buyer and the seller.
Before signing, buyers should ensure they understand all terms of the contract, including deadlines for subject removal and any financial obligations created by the agreement.
What does “subject to” mean?
A “subject to” clause is a condition that must be satisfied before the contract becomes firm. Common subject conditions include financing approval, a home inspection, or review of property documents.
If a subject condition is not satisfied or formally waived in writing by the deadline set out in the contract, the buyer may be able to withdraw from the purchase without penalty. Once all subject conditions are removed or waived in writing, the contract generally becomes binding.
When does a contract become legally binding?
A contract is generally considered binding once it has been properly signed and accepted by all parties. In many transactions, the contract includes subject conditions, and buyers typically treat the purchase as fully committed once all subject conditions have been removed or waived in writing.
After subject removal, the buyer is normally obligated to complete the purchase on the completion date. Failing to do so may result in legal consequences, including the potential loss of the deposit and other claims.
Is a deposit required to make a contract binding?
A deposit is not strictly required for a Contract of Purchase and Sale to be legally binding. A contract can still be enforceable once it has been properly signed and accepted by all parties.
However, if the contract does call for a deposit, the deposit must be paid in accordance with the contract terms. Failing to pay a required deposit by the deadline set out in the contract may allow the seller to treat the contract as breached or to terminate the agreement.
What is a deposit and who holds it?
A deposit is money paid shortly after an offer is accepted, in the amount and by the deadline specified in the Contract of Purchase and Sale. In most transactions where a real estate agent is involved, the deposit is commonly held in trust by the listing real estate brokerage.
If there is no real estate agent involved, the contract may provide that the deposit is held in trust by the buyer’s Notary or lawyer. The specific arrangements for holding the deposit are determined by the contract terms.
On completion, the deposit is credited toward the purchase price. The deposit forms part of your total funds toward the purchase but is not the same as your down payment, which is the total amount you contribute from your own resources.
What is the difference between the completion date and the possession date?
The completion date is the day ownership of the property transfers and the purchase funds are exchanged and registered at the Land Title Office. This is the date the buyer becomes the legal owner of the property.
The possession date is the day the buyer receives the keys and can take physical possession of the property. Possession often occurs on the day after completion, but the dates can be the same or different depending on what the contract provides.
When should I contact a Notary?
You should contact your Notary as soon as you have an accepted offer. Early involvement allows your Notary to review the contract, request mortgage instructions if applicable, and identify any issues that could affect completion.
If you require assistance with preparing a Contract of Purchase and Sale, you may also contact your Notary before an offer is made. In some circumstances, the buyer’s Notary can prepare the contract on the buyer’s behalf, particularly where no real estate agent is involved.
Providing information promptly helps ensure documents can be prepared and signed on time and reduces the risk of last-minute delays.
Choosing a Notary early in the buying process helps ensure your transaction stays on track and that important deadlines are met. Your Notary plays a key role in coordinating the legal work required to complete your purchase.
Do I need to choose my own Notary?
Yes. As a buyer, you choose the Notary or lawyer who will act for you on your purchase. Your Notary represents your interests and is responsible for completing the legal conveyancing work required to transfer ownership to you.
If you are working with a real estate agent or lender, they may ask for your Notary’s contact information once an offer is accepted so instructions can be sent promptly.
What does the buyer’s Notary do in a purchase?
The buyer’s Notary reviews the Contract of Purchase and Sale and prepares the legal documents required to complete the purchase. This includes preparing transfer and mortgage documents (if applicable), calculating adjustments, handling trust funds, and registering documents at the Land Title Office.
Your Notary also reviews title and coordinates with lenders, real estate professionals, and the seller’s legal representative to ensure the transaction completes on time.
Will the seller have a separate Notary or lawyer?
In many transactions, the seller retains their own Notary or lawyer to act on their behalf. This allows each party to receive independent legal advice and helps avoid potential conflicts of interest.
In some straightforward transactions, the buyer’s Notary may act in a limited capacity to assist with clearing title for the seller. This can include obtaining mortgage payout statements and registering discharges of registered financial charges. Acting in this limited capacity does not involve representing the seller and does not require consent from both parties.
Can the same Notary act for both the buyer and the seller?
In certain transactions, the same Notary may be asked to act for both the buyer and the seller. This is different from acting in a limited capacity and requires that both parties provide informed consent to the joint representation.
Where a Notary acts for both parties, both the buyer and the seller must agree to the arrangement and acknowledge that if a conflict of interest arises that cannot be resolved, the Notary must stop acting for both parties.
Some lenders require separate legal representation regardless of the circumstances. Where separate representation is required, the buyer and seller must each retain their own Notary or lawyer.
What information will my Notary need from me?
Your Notary will ask for personal identification, contact information, and details about how you are taking title to the property. If you are obtaining a mortgage, your Notary will also require lender instructions and related documentation.
Providing information promptly helps avoid delays and allows documents to be prepared and reviewed well in advance of signing and completion.
When will I meet with my Notary?
Most buyers meet with their Notary shortly before completion to review and sign documents. The timing depends on when mortgage instructions are received and when documents are ready for signing.
Your Notary will contact you to arrange an appointment and will explain the documents you are signing and the funds required to complete your purchase.
Purchasing a property that is tenanted involves additional legal considerations. Buyers should understand how existing tenancies affect possession, timelines, and their obligations after completion.
What happens if there are tenants in the property?
If a property is tenanted at the time of purchase, the tenancy does not automatically end because of the sale. In most cases, the buyer assumes the rights and obligations of the landlord after completion unless the tenancy is properly ended in accordance with residential tenancy laws.
Buyers should review the tenancy terms carefully and understand whether they intend to occupy the property themselves or continue renting it after completion.
Can a buyer require vacant possession?
Yes. A buyer can require vacant possession as a condition of the purchase, but it must be clearly stated in the Contract of Purchase and Sale. Vacant possession means the tenants have moved out and the property is empty on the possession date.
Where vacant possession is required, buyers should ensure the contract timelines allow sufficient time for the tenancy to be legally ended.
When can notice be given to end a tenancy?
In British Columbia, notice to end a tenancy for purchaser occupancy generally requires at least three months’ notice and can only be given once the Contract of Purchase and Sale is unconditional. This means all subject conditions must be removed or waived before notice can be served.
Serving notice too early, or without proper authority, may be invalid and can delay possession or expose the buyer to ongoing landlord obligations.
What if the tenancy is for a fixed term?
If the tenancy is for a fixed term, it does not automatically end at the end of the term unless the agreement includes a valid vacate clause. Without a valid vacate clause, a fixed-term tenancy typically continues on a month-to-month basis once the term expires.
Buyers should confirm whether a fixed-term tenancy includes a valid vacate clause and whether that clause is enforceable. This can significantly affect when vacant possession can be obtained.
What is the difference between completion date and possession date?
The completion date is the day ownership transfers and the purchase is registered at the Land Title Office. This is when the buyer becomes the legal owner of the property.
The possession date is the day the buyer receives the keys and can take physical possession of the property. Possession often occurs on the day after completion but may vary depending on the contract terms and whether the property is tenanted.
What if vacant possession is not achieved?
If vacant possession is required under the contract but the tenants have not vacated by the possession date, this can create legal and practical complications. Buyers should obtain legal advice promptly if this situation arises.
Understanding tenancy rules and structuring contract dates carefully helps reduce the risk of delays, disputes, or unexpected landlord responsibilities after completion.
Understanding when funds are required and how money moves through the transaction helps avoid last-minute stress and delays. Timing is especially important where mortgage financing is involved.
What funds will I need to complete my purchase?
In addition to your deposit, buyers are required to provide the balance of funds needed to complete the purchase. This typically includes the remaining purchase price after the deposit, property transfer tax (if applicable), legal fees and disbursements, and any adjustments for items such as property taxes, strata fees, or utilities.
Your Notary will calculate the exact amount required and provide you with a statement showing how the final figures are determined.
What is the Statement of Adjustments?
The Statement of Adjustments is a financial summary prepared as part of the conveyancing process. It sets out how costs and expenses related to the property are shared between the buyer and the seller as of the completion date.
Adjustments commonly include property taxes, strata fees, and other prepaid or outstanding charges. The statement ensures that each party pays their fair share as of the date ownership transfers.
When do I need to provide the balance of funds?
The balance of funds is usually required shortly before the completion date. Your Notary will advise you of the deadline and acceptable methods of payment.
Funds must be provided in certified funds, such as a bank draft or certified cheque, or by another method approved by your Notary. Delays in providing funds can delay registration and may put the transaction at risk.
How does mortgage financing affect timing?
If you are obtaining a mortgage, your lender must provide mortgage instructions to your Notary before documents can be finalized. Lenders often have internal processing timelines and funding cut-off times.
Providing lender contact information early and responding promptly to requests for documents helps ensure mortgage funds are advanced on time for completion.
When does completion occur?
Completion occurs on the completion date set out in the Contract of Purchase and Sale. On that date, purchase funds are exchanged, documents are registered at the Land Title Office, and ownership transfers from the seller to the buyer.
Completion typically takes place during normal business hours and is subject to banking and registration cut-off times.
When do I receive the keys?
Keys are provided on the possession date, not the completion date. Possession often occurs the day after completion, unless the contract provides otherwise.
Once possession occurs, the buyer is entitled to occupy the property and assumes responsibility for it as the new owner.
What happens if funds or documents are delayed?
If required funds or documents are not available on time, completion may be delayed. This can result in additional costs or other consequences under the contract.
Staying in close contact with your Notary, lender, and real estate representative and responding promptly to requests helps reduce the risk of delays.
In addition to the purchase price, buyers should budget for certain taxes and government charges associated with purchasing real estate. These costs are separate from legal fees and are payable as part of the completion process.
What is Property Transfer Tax?
Property Transfer Tax is a one-time provincial tax payable by the buyer when a property is registered in their name at the Land Title Office. It is paid on the completion date and is based on the fair market value of the property.
Your Notary calculates the Property Transfer Tax payable and arranges for it to be paid to the provincial government as part of the registration process.
Property Transfer Tax vs. annual property taxes
Property Transfer Tax and annual property taxes are two different charges, and they are often confused.
Property Transfer Tax is a one-time tax paid only when ownership of a property changes. It does not recur after completion.
Annual property taxes are ongoing municipal taxes charged each year by the local government to help fund services such as roads, schools, and emergency services. These taxes continue for as long as you own the property.
As part of the purchase, annual property taxes are adjusted between the buyer and the seller as of the completion date so that each party pays their share for the portion of the year they own the property.
Are there any exemptions or reductions?
Certain buyers may qualify for exemptions or reductions of Property Transfer Tax, such as first-time home buyers or purchasers of newly built homes. Eligibility depends on specific criteria set out in provincial legislation.
Your Notary can advise whether you may qualify for an exemption, but buyers should be aware that strict requirements apply. Providing incorrect or incomplete information can result in reassessment, interest, and penalties.
When does GST apply?
GST does not apply to most resale residential properties. However, GST may apply to newly built or substantially renovated homes, certain vacant land, or properties used to earn rental or business income.
Where GST applies, buyers may be eligible for a rebate depending on the purchase price and how the property will be used. GST rebates are governed by federal rules and eligibility requirements.
Are there other government charges?
In addition to Property Transfer Tax and GST (if applicable), buyers should budget for government registration fees charged by the Land Title Office. These fees are payable when documents are registered and are separate from legal fees.
What about utilities and local charges?
Utility charges and similar local expenses are adjusted between the buyer and the seller as of the completion date. Depending on what has already been paid, the buyer may need to reimburse the seller for prepaid amounts or pay outstanding charges.
These adjustments are included in the Statement of Adjustments prepared as part of the conveyancing process.
Should I obtain tax advice?
While your Notary can explain how taxes and government charges are calculated and collected as part of the transaction, they do not provide tax planning advice. Buyers with questions about their specific tax situation should speak with an accountant or tax advisor.
Not all properties are treated the same from a legal and practical perspective. The type of property you are purchasing affects the documents involved, your ongoing obligations, and the due diligence you should complete before removing subject conditions.
Why does the type of property matter?
Different property types are governed by different legislation and may involve additional documents, restrictions, or risks. Understanding the type of property you are buying helps ensure you know what you are purchasing and what obligations come with ownership.
Your Notary can explain the legal structure of the property, but buyers are responsible for completing appropriate due diligence before the contract becomes unconditional.
Strata properties
Strata properties involve shared ownership of common property and are governed by the Strata Property Act. Owners are required to comply with strata bylaws and rules and to contribute to strata fees and special levies.
Buyers should carefully review strata documents, including bylaws, financial statements, meeting minutes, and depreciation reports where available, to understand the strata’s financial health and any upcoming expenses.
Freehold (non-strata) properties
Freehold properties are owned outright and are not part of a strata corporation. While there are no strata fees or bylaws, owners are still subject to municipal bylaws, zoning regulations, and other restrictions registered on title.
Buyers should review title and any registered charges, easements, or covenants that may affect use of the property.
Manufactured homes
Manufactured homes can be located on owned land or within a manufactured home park. The legal treatment differs depending on whether the home is registered in the Land Title Office or under the Manufactured Home Act.
Buyers should confirm how the home is registered and understand any pad rental agreements, park rules, or restrictions that may apply.
Vacant land and rural properties
Purchasing vacant land or rural property often involves additional considerations such as access, water supply, sewage disposal, zoning, and permitted uses.
Buyers should investigate whether the property is serviced by municipal utilities or relies on wells, septic systems, or other arrangements, and whether required permits or approvals are in place.
What is due diligence?
Due diligence refers to the investigations and inquiries a buyer completes before committing to the purchase. This may include reviewing property documents, obtaining inspections, confirming zoning and permitted use, and understanding any legal or practical limitations affecting the property.
Most due diligence is completed during the subject condition period. Once subject conditions are removed, buyers generally proceed with the purchase as agreed.
How can my Notary help?
Your Notary can explain title, registered charges, and the legal structure of the property and can help identify issues that may affect completion. However, Notaries do not conduct inspections or provide advice on the physical condition or value of the property.
Buyers should ensure they obtain appropriate professional advice where needed before removing subject conditions.
Once all subject conditions have been removed and financing is in place, the transaction moves into the final legal stage. This is when documents are prepared, funds are arranged, and ownership is formally transferred.
What happens once my contract is unconditional?
After all subject conditions have been removed or waived in writing, the Contract of Purchase and Sale becomes firm. At this stage, both the buyer and the seller are legally committed to completing the transaction on the agreed completion date.
Your Notary will begin preparing the final conveyancing documents and coordinating with the lender, real estate professionals, and the seller’s representative.
When will I sign my documents?
Buyers typically sign their documents shortly before the completion date. This includes transfer documents, mortgage documents (if applicable), and related affidavits and acknowledgements.
Your Notary will explain the documents you are signing and confirm the funds required to complete your purchase.
What funds are required at this stage?
Before completion, buyers must provide the balance of funds required to complete the purchase. This includes the remaining purchase price after the deposit, applicable taxes, legal fees and disbursements, and any adjustments.
Funds must be provided in certified funds, such as a bank draft or certified cheque, or by another method approved by your Notary.
What happens on the completion date?
On the completion date, your Notary exchanges purchase funds and registers the transfer of ownership at the Land Title Office. Once registration is complete, legal ownership of the property transfers from the seller to the buyer.
Completion typically occurs during regular business hours and is subject to banking and Land Title Office cut-off times.
When do I receive possession of the property?
Possession occurs on the possession date set out in the contract, not on the completion date. Possession often takes place the day after completion, unless the contract provides otherwise.
Keys are usually released through the real estate brokerage once possession occurs.
What happens after completion?
After completion, your Notary will provide you with a reporting package confirming registration and summarizing the transaction. You will also receive information about property tax billing and other post-completion matters.
Buyers should arrange home insurance to be in place as of the completion date and ensure utilities and services are transferred into their name effective on the possession date.