An accepted offer feels like the finish line. In British Columbia it is closer to the halfway mark. Here is what actually happens between “they accepted” and the day you get the keys, in the order it happens, so nothing lands as a surprise.
1. The rescission period starts immediately
British Columbia has a Home Buyer Rescission Period. For most residential resale purchases, a buyer can back out within three business days of the seller accepting the offer, and pay a rescission fee calculated as a percentage of the purchase price. It applies whether or not your contract has subject conditions in it.
It does not apply to every transaction, and it is not a free look. Ask your REALTOR® whether it applies to the property you are buying, and what the fee would be, before you rely on it as a safety net. It is a last resort, not a plan.
2. Your deposit goes into a trust account
The deposit is not paid to the seller. It goes into the brokerage’s trust account and sits there until completion, when it forms part of what you pay for the home. If the deal collapses, what happens to the deposit depends on why it collapsed and what your contract says. That is one of several reasons the wording of your subject clauses matters more than most people realise.
3. The subject removal window – the busiest days of the whole process
Most offers are written with conditions, called subjects, that have to be satisfied before the deal becomes firm. The common ones:
- Subject to financing. A pre-approval is not final approval. Your lender now needs the actual property, and it may want an appraisal. If the appraisal comes in under the purchase price, the lender lends against the lower number and the gap becomes yours to cover.
- Subject to inspection. Book it the day your offer is accepted, not three days later. Good inspectors are booked out, and the clock does not pause for you.
- Subject to reviewing documents. On a strata, this is the Form B Information Certificate, the depreciation report, the bylaws, the financial statements and at least two years of minutes. Read the minutes. Special levies and building problems are usually discussed there long before they appear anywhere else.
- Subject to sale. If you have to sell your own place first, expect the seller to want a time clause that lets them keep marketing.
These windows are typically short. Work backwards from the deadline, not forwards from today.
4. The Property Disclosure Statement is a starting point, not a warranty
The seller completes a Property Disclosure Statement covering what they know about the property. It is useful and you should read every line of it. But it records what the seller is aware of. It is not a guarantee, and it is not a substitute for an inspection.
5. Subject removal – the deal goes firm
Once you remove your subjects in writing, the deal is binding. This is the point of no return, and it is why nobody should ever remove subjects to “keep things moving” while a piece is still outstanding. If your financing is not confirmed in writing, your financing is not confirmed.
6. Three dates, not one
People talk about “closing” as though it is a single day. In a BC contract there are three:
- Completion date. The legal transfer. Money moves, title transfers.
- Possession date. When you can actually walk in. Usually the next day.
- Adjustment date. The date from which property taxes, strata fees and utilities become yours.
They are often a day or two apart, and confusing them is how people end up booking a moving truck for a day they cannot get in the door.
7. Your lawyer or notary, and the money you have not budgeted for
Around a week or two before completion you will meet your lawyer or notary to sign the transfer and mortgage documents. Bring photo identification and be ready for the costs that sit outside your down payment:
- Property Transfer Tax. There are exemptions, including one for qualifying first-time buyers and one for certain newly built homes, and the thresholds are adjusted from time to time. Have your agent or lawyer confirm what applies to you rather than relying on what a friend paid two years ago.
- Legal fees and disbursements.
- GST, if the home is newly built.
- Property tax and strata fee adjustments, which can go either direction depending on what the seller has already paid.
- Home insurance, which your lender will want in place before it funds.
8. The final walkthrough
Do it, and do it after the seller has moved out rather than before. You are checking that what was included is still there, that nothing was damaged during the move, and that the appliances still run. It is a lot easier to raise something the day before completion than the week after.
The short version
The pressure points are the subject removal window and the days around completion. Everything else is administration. If you know what is coming and you have booked the inspector, the lender and the lawyer early, the whole thing is manageable.
If you are in the middle of this and something does not sit right, ask. That is what your agent is for, and no question at this stage is a stupid one.