Sale and Purchase of Real Estate | By Lawyers
Skip to main content

Sale and Purchase of Real Estate

BC

A complete matter management solution for practitioners running a busy conveyancing practice in British Columbia.

2 Matter Plans

Overview

The sale and purchase of real estate commentaries cover all common and less frequent issues that arise in conveyancing matters. Each step of the transaction is outlined in sequential order, with all required precedents conveniently located, along with links to the relevant sections of the comprehensive commentary.

The Reference materials folder includes guidance on electronic signing and remote witnessing, and the Getting the matter underway folder contains essential compliance and client engagement documents. The comprehensive Retainer Instructions ensure that all necessary information is gathered from the client at the outset of the matter.

Precedents in this publication include:

  • A full suite of letters to:
    • clients;
    • real estate agents; and
    • lenders.
  • Library of additional clauses;
  • Declaration of trust for a purchaser;
  • Mutual termination agreement.
Icon

2 Matter Plans Included

  • Folder icon Letters & Documents
    • Item icon Goods and Services Tax Certificate
    • Item icon Letter to Lender enclosing mortgage payout funds
    • Item icon Letter to Lender requesting discharge statement
    • Item icon Letter to Listing Realtor Paying or Releasing Commission
    • Item icon Letter to Municipality re Payment of Utilities
    • Item icon Letter to Municipality re Special Meter Reading
    • Item icon Letter to Purchaser's Representative Undertaking
    • Item icon Vendor BC Speculation and Vacancy Tax Act Declaration
    • Item icon Vendor Income Tax Declaration
  • Item icon ALERTS - Nil
  • Item icon Full Commentary - Sale of Real Estate (BC)
  • Folder icon Reference materials
    • Item icon AI Prompts
    • Item icon Electronic Signing and Remote Witnessing
    • Item icon Further information
  • Item icon Overview
    The purpose of a real estate transaction is to transfer the title and use of real property from one party to another. Despite the trend toward making it so, the purchase and sale of real estate is not adversarial. This is due mainly to warranties and the practice of satisfying all enquiries on ...

    This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

  • Item icon Summary of the process
    The usual steps in a sale of real estate matter are:

    This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

  • Folder icon A. Getting the matter underway
    • Item icon File cover sheet - Sale of real estate
    • Item icon To do list - Sale of real estate
    • Item icon First steps
    • Item icon Client details, verification, and source of funds
    • Item icon Retainer instructions - Sale of real estate
    • Item icon Conflict of interest check
    • Item icon Initial letter to client enclosing retainer agreement and authority
    • Item icon Initial letter to client enclosing retainer agreement and authority precontract
    • Item icon Retainer agreement - British Columbia
    • Item icon Scope of work - Sale of real estate
    • Item icon Authority for records
    • Item icon Time and costs estimates
    • Folder icon If required - Costs disclosure update and a non-engagement letter
      • Item icon Letter to client updating costs disclosure
      • Item icon Non-engagement letter
    • Folder icon General deeds, agreements, execution clauses, and statutory declarations
      • Item icon Deeds and Agreements
      • Folder icon Deeds
        • Item icon Confidentiality deed
        • Item icon Deed for general use
        • Item icon Deed of assignment of agreement
        • Item icon Deed of gift
        • Item icon Deed of guarantee
        • Item icon Deed of release
        • Item icon General deed of indemnity
        • Folder icon Library of standard clauses for deeds
          • Item icon Amendment clause
          • Item icon Confidentiality clause for defined information - All parties
          • Item icon Confidentiality clause for defined information - One party
          • Item icon Confidentiality clause for terms of agreement - All parties
          • Item icon Confidentiality clause for terms of agreement - One party
          • Item icon Costs clause
          • Item icon Counterparts clause
          • Item icon Dispute resolution clause
          • Item icon Events beyond control clause
          • Item icon Governing law and jurisdiction clause
          • Item icon Interpretation clause
          • Item icon No assignment clause
          • Item icon Notices clause
          • Item icon Severance clause
          • Item icon Waiver clause
          • Item icon Whole agreement clause
      • Folder icon Agreements
        • Item icon Agreement for general use
        • Item icon Heads of agreement
        • Item icon Non-disclosure agreement - Formal
        • Item icon Non-disclosure agreement - Informal
        • Folder icon Library of standard clauses for agreements
          • Item icon Amendment clause
          • Item icon Confidentiality clause for defined information - All parties
          • Item icon Confidentiality clause for defined information - One party
          • Item icon Confidentiality clause for terms of agreement - All parties
          • Item icon Confidentiality clause for terms of agreement - One party
          • Item icon Costs clause
          • Item icon Counterparts clause
          • Item icon Dispute resolution clause
          • Item icon Events beyond control clause
          • Item icon Governing law and jurisdiction clause
          • Item icon Interpretation clause
          • Item icon No assignment clause
          • Item icon Notices clause
          • Item icon Severance clause
          • Item icon Waiver clause
          • Item icon Whole agreement clause
      • Folder icon Execution clauses
        • Item icon Execution clauses - Agreements and contracts
        • Item icon Execution clauses - Deeds
      • Folder icon Statutory declaration
        • Item icon Statutory declaration
      • Item icon Standard annexure note for documents
  • Folder icon B. Contract considerations
    • Item icon Contract considerations
      The contract between a vendor and purchaser is the primary document setting out the parties’ obligations. It is an executory document, meaning it establishes the rights and obligations of the parties. Most contracts for the sale of property in British Columbia use a British Columbia Real Estate ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Considerations for commercial properties
      Building condition assessment A building condition assessment is usually done as part of due diligence before finalizing the transaction. It assesses the property's general condition, including structural and non-structural components and electrical and plumbing systems. This allows a purchaser to ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Tax considerations
      The tax consequences need to be considered with each sale.

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Property
      Identification Those who cannot imagine a mistake in this area easily overlook the need to identify the property. It may seem inconceivable that a contract can relate to a property other than the one inspected by the purchaser, but it has happened.

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Forming the contract
      Form of contract While the form of contract is not prescribed by law, various requirements are. There are implied conditions for entering an enforceable contract. Provided the contract complies with these various conditions and the other formality requirements discussed below, the contract will be ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon British Columbia Real Estate Association Contract of Purchase and Sale – Residential
      The BCREA Contract of Purchase and Sale first page includes the contract date, the parties’ particulars, the property address, its legal description and parcel identifier number (PID), and the brokerage and realtor’s name and contact information. The parties initial each page. On the last page, the ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon British Columbia Real Estate Association Contract of Purchase and Sale – Commercial
      The BCREA Contract of Purchase and Sale for Commercial Real Estate is divided into 2 parts. Part 1 is a contract information summary. Part 2 sets out the terms of the contract.

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Representations and warranties
      The BCREA Contract of Purchase and Sale is clear that only the representations, warranties, guarantees, promises or agreements set out in the contract and contained in the property disclosure statement form part of the contract when incorporated into the contract. A representation is a statement ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Inclusions
      In the Contract of Purchase and Sale, all inclusions and any items that a purchaser might consider included and which are not identified as exclusions should be stated. Improvements encompass all things attached to the land and the buildings. A purchaser expects to receive all improvements, and the ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Terms and conditions
      A Library of additional clauses is included on the matter plan to deal with the many less common issues that might be relevant.

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Initial letter to purchaser's lawyer seeking amendment to contract
    • Item icon Initial letter to purchaser's lawyer enclosing property survey
    • Folder icon If required - Corporate resolutions
      • Item icon Corporate resolution for vendor - Commercial real estate sale
    • Folder icon If required - Library of additional clauses
      • Item icon Development clauses
      • Item icon Board approvals
      • Item icon Competition Act approval
      • Item icon Planning Act consents
      • Item icon Representations and warranties
      • Item icon Rezoning condition
      • Item icon Severance condition
    • Folder icon Library of other contracts, deeds and agreements
      • Item icon Agreement to assign contracts
      • Item icon Agreement to assign due diligence material
      • Item icon Agreement to assign encumbrances
      • Item icon Agreement to assign leases
      • Item icon Agreement to assign rights and warranties
      • Item icon Agreement to assume existing agreements
      • Item icon Agreement to assign contract of purchase and sale
      • Item icon Amendment to contract of purchase and sale
      • Item icon Assumption of covenant
      • Item icon Consent to assignment of agreement
      • Item icon Non-merger agreement
      • Item icon Realty tax agreement
      • Item icon Reconveyance agreement
      • Item icon Restrictive covenant agreement
      • Item icon Agreement for sale of chattels and fixtures
    • Item icon Letter to client requesting appointment to sign contract and bring loan number
    • Item icon Deposit
      The deposit is a show of good faith and commitment to the transaction and demonstrates to the vendor that the purchaser is serious about the purchase. The timing of the deposit payment can vary depending on the terms negotiated between the parties. Typically, the deposit is paid within ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Method of offering and accepting contract
      In person, by courier, fax, or email Offering and accepting a contract can be effected personally, by courier, fax, or email, as is common when the parties’ lawyers or realtors are distant. The lawyers or realtors email each other copies of the executed contract, refer to any special conditions, ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Execution including electronic signatures and power of attorney
      Section 59 of the Law and Equity Act [RSBC 1996] c. 253 requires contracts to be signed by the parties or their duly authorized agents. Electronic contracts and electronic signatures are acceptable: Electronic Transactions Act [SBC 2001] c. 10.

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Folder icon If required - Power of attorney
      • Item icon Enduring power of attorney for client 1
      • Item icon Enduring power of attorney for client 2
      • Item icon General power of attorney for client 1
      • Item icon General power of attorney for client 2
      • Item icon General power of attorney by a corporation
      • Folder icon Library of clauses for powers of attorney
        • Item icon Access to will
        • Item icon Compensation for attorney
        • Item icon Compensation for attorney excluded
        • Item icon Compensation for attorney greater than prescribed fee scale
        • Item icon Corporation appointing attorney to conduct the business of the corporation
        • Item icon Corporation appointing attorney to execute documents
        • Item icon Discharge of mortgage
        • Item icon Mortgage
        • Item icon Purchase of real estate - General
        • Item icon Purchase of real estate - Specific
        • Item icon Sale of real estate
    • Item icon Letter to purchaser's lawyer enclosing signed contract
    • Item icon Right of rescission
      British Columbia has introduced a statutory right of rescission for purchasers. It is the first jurisdiction to enact a cooling-off period for purchasers of certain types of residential real property. The right does not apply to auction sales or sales under a court order. Residential properties to ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Auctions, family transfers, partition, pre-construction, and liens
      Auction contract Auction contracts are no different from any other type of contract. Until a party signs the contract, it is not enforceable against that party.

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Home builder liability
      BC Housing BC Housing has responsibility for all registration, licensing, and regulation of companies and people who build and sell new homes in British Columbia.

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Folder icon If required - Options
      • Item icon Options and rights of first refusal
        Right of first refusal An owner of land may grant a right of first refusal, which imposes an obligation on the vendor to give a person the first chance to buy the property on the same terms and conditions as offered to the market. A right of first refusal is an equitable interest in land: s 9 ...

        This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

      • Item icon Put and call option agreement
      • Item icon Option to purchase agreement
      • Item icon Option notice
      • Item icon Nomination notice
  • Folder icon C. Mid transaction
    • Item icon Notice and caveats
      The cornerstone of the Torrens system is the principle of indefeasibility of title. The government guarantees that the property register is accurate, and that the registered owner has the title as shown, subject to the encumbrances described. The register sets out the state of title, and a ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Vendor's authorization to government authorities to provide information
    • Item icon Caveat
    • Item icon Application
    • Item icon BC Land Title & Survey
    • Item icon Assignment of mortgage
    • Item icon Requisitions and objections
      Requisitions are written requests by the purchaser to the vendor about the property and its title. An objection is an assertion by the purchaser that they cannot complete the contract due to a defect in title or the property. Requisitions and objections should be made within a reasonable time.

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Letter to purchaser's lawyer replying to requisitions
    • Folder icon If required - Discharging mortgages
      • Item icon Discharging mortgages
        It is standard procedure to write to mortgagees to arrange the discharge of the mortgage they hold on title. The BCREA contracts give the vendor until immediately after receipt of the purchase price to pay and discharge an existing mortgage. The purchaser’s lawyer pays the purchase price to the ...

        This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

      • Item icon Letter to lender requesting mortgage statement for discharge
      • Item icon BC Land Title & Survey
    • Item icon Insurance and risk
      Historically, the common law held that risk passed on signature of the Contract of Purchase and Sale and that, while the vendor was in the position of a trustee for the purchaser during the contract period, the risk of any deterioration to the property during that period fell on the purchaser. The ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Variations, nomination, assignment, novation, and default by nominee
      Variation of contract Parties to a contract may agree to vary or amend the contract. They might also authorize an agent, like their lawyer, to agree to a contract variation. Any representative seeking to vary a contract must exercise caution the authority may not extend to the variation of ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Folder icon If required - Disposition of taxable Canadian property by non-residents
      • Item icon Request by a Non-Resident of Canada for a Certificate of Compliance Related to the Disposition of Taxable Canadian Property
      • Item icon T2062A Request by a Non-resident of Canada for a Certificate of Compliance Related to the Disposition of Canadian Resource or Timber Resource Property, Canadian Real Property (Other Than Capital Property), or Depreciable Taxable Canadian Property
      • Item icon Letter to Canada Revenue Agency requesting comfort letter
  • Folder icon D. Claims and disputes
    • Item icon Claims
      When a purchaser breaches the Contract of Purchase and Sale, the vendor may institute proceedings to recover from the purchaser the shortfall from a resale. The deposit may be forfeited without proof of damages.

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Deterioration
      A Contract of Purchase and Sale is an executory contract, meaning that the parties will complete the contract some time after the agreement is made. This is contrasted with an agreement to purchase an ice cream, which is completed when the agreement is made. This time delay creates the possibility ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Notices
      Ownership of land requires the owner to have a relationship with many other people and organizations in relation to the land, for example, neighbours, and local and other authorities. These relationships may result in these third parties taking a particular interest in the property and may even ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Letter to other side with notice of waiver or satisfaction of condition
    • Item icon Letter to other side giving notice of termination
    • Item icon Mutual termination agreement
  • Folder icon E. Closing
    • Item icon Closing documents
      Vendor’s documents The following documents may need to be provided by the vendor at closing:

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Adjustments
      The usual adjustments in residential transactions are made for property taxes and monthly common expenses in the case of strata properties. Sometimes, there will be adjustments for tenant rent, oil, and flat-rate water. The vendor pays for these costs until closing, and the purchaser is responsible ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Letter to client enclosing statement of adjustments
    • Item icon Vendor's undertaking to readjust
    • Item icon Freehold Transfer
    • Item icon Schedule
    • Item icon Declaration
    • Item icon Vendor's document acknowledgement and direction
    • Item icon Sale closing declaration and undertaking
    • Item icon Direction by vendor regarding proceeds of sale
    • Item icon Acknowledgement by vendor regarding utilities
    • Item icon Letter to client enclosing closing documents for signing
    • Item icon Letter to other side's lawyer confirming extension of closing date
    • Folder icon If required - Statutory declarations
      • Item icon Statutory declaration
      • Item icon Clause - Statutory declaration of vendor - BC Registry land
      • Item icon Clause - Statutory declaration of vendor - BC Writ of execution
      • Item icon Clause - Statutory declaration of vendor - BC Ownership, survey and GST
      • Item icon Clause - Statutory declaration of vendor - BC Corporation director declaration
      • Item icon Clause - Statutory declaration of vendor - BC Underused Housing Tax
    • Folder icon If required - Undertakings and indemnities
      • Item icon Letter to other side's lawyer enclosing undertakings
      • Item icon Undertaking by vendor's lawyer - Discharging charges
      • Item icon Undertaking by purchaser's lawyer - Section 116 Certificate
      • Item icon Purchaser's certificate and indemnity - Goods and Services Tax
    • Folder icon Closing
      • Item icon Closing process
        Pre-closing inspection Usually, the Contract of Purchase and Sale includes a provision allowing the purchaser a limited number of visits to view the property before closing to arrange for bank appraisals, to take measurements, or generally check that the property is in the same condition as at the ...

        This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

      • Item icon Closing instructions - Sale
      • Item icon Direction for payment of funds and undertaking
      • Item icon Electronic registration
        Electronic registration in British Columbia typically refers to the process of registering important legal documents related to property ownership and transactions electronically instead of through paper-based processes. The British Columbia Land Title and Survey Authority (LTSA) is responsible for ...

        This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

      • Item icon Delayed closing
        If closing cannot be effected on time, the options are to arrange an escrow closing or extend the completion date.

        This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

      • Item icon Delayed closing escrow agreement
      • Item icon Holdback agreement
      • Item icon Letter to purchaser's lawyer enclosing closing package
      • Item icon BC Land Title & Survey
    • Item icon Completion and merger
      The common law doctrine of merger grew out of the principle that when a lesser estate was vested in the same person as a greater estate, the lesser estate merged into the greater estate and was extinguished. A common example of this principle is where the dominant and servient tenements in an ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Post-closing and reporting
      If a mortgage was registered on title, the vendor’s lawyer has 5 days from completion to provide evidence of payout as per the CBA standard undertaking. A state of title certificate can be applied for once the discharge of mortgage has been registered to show the mortgage is no longer ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Folder icon Post closing letters
      • Item icon Acknowledgement - Receipt of closing funds
      • Item icon Letter to real estate broker after closing to account for deposit
      • Item icon Letter to purchaser's lawyer confirming discharge of mortgage registered
      • Item icon Letter to bank enclosing cheque deposit
      • Item icon Letter to lender enclosing mortgage payout
      • Item icon Letter to lender following up discharge of mortgage
      • Item icon Letter to municipal office advising change of ownership
      • Item icon Letter to tenant with notification of sale
  • Folder icon F. Finalizing the matter
    • Item icon Letter to client finalizing the matter
    • Item icon Invoice recital - Sale of real estate
    • Item icon Closing the file
    • Item icon File closing checklist
  • Item icon Comments and suggestions for By Lawyers

Our Authors

A team of legal professionals contribute to By Lawyers' publications, all helping to ensure that content is updated regularly to reflect changes in legislation, practice, and procedure.
Meet Our Authors
Authors