Buying
How does a deposit work when you buy a home in BC?
In BC, your deposit is normally held in a real estate brokerage's trust account as a stakeholder for both you and the seller, not for one side alone, until the sale completes. There's no set deposit amount; it's whatever you and the seller agree to in the contract, along with the date it's due. Pay it on time and in a form the holding brokerage accepts. Ask about accepted payment types early: e-transfers can have daily limits, so check with your bank ahead of time or use a bank draft.
If a deposit arrives late or a cheque isn't honoured, the brokerage must notify the parties in writing. You and the seller can agree to have a lawyer or notary hold the deposit instead; if anyone other than a brokerage holds it, get legal advice. Remember that most residential purchases in BC also come with a three-business-day rescission period: if you rescind, you owe the seller 0.25% of the price.
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Is a verbally accepted offer binding in BC?
Generally no: under BC's Law and Equity Act, a contract about land isn't enforceable unless it's in writing and signed by the party being held to it, with only narrow exceptions. That means a seller saying “we'll take it” over the phone usually doesn't lock in a deal yet, which is why you want the terms written and signed quickly.
The exceptions apply where someone has acted on the deal in a way the law recognizes, such as paying and accepting a deposit, so don't count on them; get it in writing. Once a written offer on most residential properties is accepted, buyers also have a three-business-day rescission period, with a fee of 0.25% of the price if they rescind. If you're unsure where your deal stands, ask a lawyer.
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What's the difference between a mortgage pre-qualification and a pre-approval?
A pre-qualification is a quick estimate based on what you tell a lender or calculator about your income, debts and down payment; a pre-approval goes further, with a lender or mortgage broker reviewing your documents and credit and setting a maximum amount, often with a rate hold. Neither is a final mortgage approval. Even a pre-approval depends on your situation staying the same and on the lender accepting the specific property, which can include an appraisal.
The more thoroughly your income documents and credit were reviewed up front, the more you can rely on the number. Before you shop, ask how your pre-approval was done, gather recent pay stubs, tax documents and bank statements, and know your minimum down payment: 5% on the first $500,000 and 10% on the portion above that for insured mortgages on homes under $1.5 million. More in Getting mortgage-ready before you house-hunt.
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What's the difference between an insured and an uninsured mortgage?
An insured mortgage is one backed by mortgage loan insurance, which lenders usually require when your down payment is less than 20% of the purchase price; an uninsured (conventional) mortgage is for buyers putting down 20% or more. With insurance, you can buy with as little as 5% down on the first $500,000 and 10% on the portion above that, for homes priced under $1.5 million.
The trade-off is a one-time insurance premium. With less than 20% down, CMHC's premium is generally 2.80% to 4.00% of the loan depending on how much you put down (higher in some cases, such as longer amortizations). You can pay it up front or add it to your mortgage. With 20% or more down, insurance usually isn't required, so there's no premium. A mortgage professional can tell you which option fits your situation. See also pre-qualification vs. pre-approval.
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What's the difference between joint tenants and tenants in common in BC?
Joint tenants share ownership equally with a right of survivorship, so when one owner dies their interest passes to the surviving owner; tenants in common each own a share that passes to their own estate instead. Joint tenancy is common for spouses buying together. Tenancy in common suits buyers who want their share to go to their own heirs, such as friends or relatives buying together, and the shares don't have to be equal.
In BC, joint tenancy has to be stated on the transfer and on the title; if the title doesn't say joint tenants, the owners are tenants in common. When a joint tenant passes away, the survivor can apply to the Land Title and Survey Authority (LTSA) to update the title, using an original death certificate. How you hold title has legal and tax consequences, so ask your lawyer or notary before you complete. More in Joint tenants or tenants in common?
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Condos, townhomes and strata
What is a strata Form B, and how do I get one?
A Form B Information Certificate is a document from the strata corporation that sets out key facts about a specific strata lot and the strata, and in BC it must be provided within seven days of a request for a fee of no more than $35 plus up to 25 cents a page for copies. An owner, a buyer with an agreement to purchase, or someone they authorize (such as their real estate agent) can request it.
The Form B shows the monthly strata fees and anything the owner owes, upcoming special levies, the contingency reserve fund balance, unfiled bylaw amendments, pending legal proceedings, assigned parking and storage, and a summary of the strata's insurance. The strata's rules, current budget, most recent depreciation report and electrical planning reports must be attached. A rush fee may apply if you need it faster than seven days.
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What is a strata depreciation report, and why does it matter when you buy?
A depreciation report is a study of a strata corporation's common property and assets that projects what it will cost to maintain, repair and replace them over the next 30 years, and most BC stratas with five or more lots must get one. Strata corporations with five or more lots, including bare land stratas, have to get a report on a five-year cycle; stratas with four or fewer lots are exempt. Since July 1, 2024, stratas can no longer vote each year to skip it.
Stratas outside Metro Vancouver, the Fraser Valley and the Capital Regional District, including in the North Okanagan, that have no report, or whose last report was received before December 31, 2020, must get one by July 1, 2027. For buyers, the most recent report, if the strata has one, must be attached to the Form B, so you can compare the planned costs with the contingency reserve fund and spot possible special levies before you commit.
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Selling
Can a home in BC be sold using a power of attorney?
Yes, a home in BC can be sold by an attorney acting under a power of attorney, as long as the document gives authority over real estate, is still valid, and is accepted by the Land Title Office. An original or certified true copy has to be filed with the Land Title Office. Under section 56 of the Land Title Act, a power of attorney used for land generally expires three years after it was signed, unless it's an enduring power of attorney or that section has been excluded.
A general (non-enduring) power of attorney stops working if the person who granted it loses mental capacity. Any power of attorney ends when that person dies; from then on, the executor or administrator of the estate has to handle the sale. Powers of attorney made outside BC carry a higher risk of not being recognized here. Because the details matter, have a lawyer or notary review the document before you list, and allow extra time. More in Selling a parent's home with a power of attorney.
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Can a seller in BC refuse to sell to a buyer because of their race, religion or other protected characteristics?
Not for any reason the BC Human Rights Code protects. The Code protects buyers from discrimination when purchasing property, so a seller can't refuse to sell, or set different terms, because of a buyer's Indigenous identity, race, colour, ancestry, place of origin, religion, marital status, physical or mental disability, sex, sexual orientation, or gender identity or expression. The protection applies even if the seller only believes the buyer has one of those characteristics.
The BC Human Rights Tribunal notes that the person selling is usually the one named in a complaint, and that anyone else responsible for the discrimination could be named too. Sellers can still weigh offers on price, deposit, conditions and dates, for reasons unrelated to a protected characteristic. For questions about a specific situation, talk to a lawyer.
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General information only, not legal, tax or mortgage advice. Rules change; check the linked official source and talk to your lawyer, notary, accountant or mortgage professional about your situation.