BC Residential Contract of Purchase & Sale: a Plain-English Walkthrough
BC Residential Contract of Purchase & Sale: a Plain-English Walkthrough
The Contract of Purchase & Sale is the legal document that makes a BC home purchase official, and most buyers sign it without fully understanding what's in it. This walkthrough covers every major section, from deposit and subjects to the rescission period and assignment clause, so you know exactly what you're agreeing to.
What the Contract Actually Covers
The BC Residential Contract of Purchase & Sale is longer than most buyers expect. Part of the form summarises customary costs for each side for information only; the binding terms are the numbered sections that follow.
From the seller's side, the biggest closing costs are lawyer or notary fees and real estate commissions, which include GST. Buyers carry their own lawyer or notary fees, land title registration fees, and potentially a survey certificate. Mortgage broker fees are typically paid by the lender. Property Transfer Tax and, on new construction, GST are buyer responsibilities and are disclosed in the contract so there are no surprises at closing.
The contract is the same form whether you are buying a detached home or a strata property. Strata purchases include additional pages covering strata documents, but the core structure is identical. The BC Real Estate Association maintains and updates this form, and it has been revised multiple times in recent years, so the version your agent uses may look slightly different from older templates you find online.
Deposit, Purchase Price & the Rescission Period
The purchase price appears in both numeric and written form to eliminate ambiguity. If a counter-offer changes the price, the original figures are crossed out and initialled by both parties.
The standard form makes the deposit due within 24 hours of acceptance unless the parties agree otherwise, and many BC offers change that to within 24 hours of subject removal. It is held in trust by whoever the contract names. The amount is negotiable. It forms part of the eventual down payment and signals to the seller that you intend to complete.
The rescission period, in force since January 3, 2023, applies to most residential purchases whether or not the offer has subjects. If a buyer rescinds within those three business days, they owe the seller 0.25% of the purchase price. Weekends and holidays do not count. It runs at the same time as any subjects, not after them, and the buyer cannot waive it.
Every initial box needs every buyer and seller. A missing initial box can create a legal vulnerability, so confirm every box is signed before the contract leaves your hands.
Subjects & Conditions: Your Due-Diligence Window
Subjects are the conditions that must be satisfied before the deal becomes firm, and they are the most important protective tool a buyer has. Common subjects include financing, home inspection, fire and property insurance, the Property Disclosure Statement, title search, and for strata purchases, review of strata documents.
The length of the subject period is negotiated in each offer. On a strata purchase, due diligence means reviewing Form B, two years of meeting minutes including AGMs and any SGMs, bylaws, rules, and the depreciation report. A special levy already in place or proposed is one of the most important things to identify: the contract can be written so the seller is responsible for any levy originating before completion.
A specific, detailed financing clause holds up better legally than a vague one. Fire and property insurance is worth confirming early: certain strata buildings with specific piping types or prior insurance claims can be difficult or expensive to insure.
The BC Government's real estate consumer information is a useful reference for your rights during the subject period. A competent agent will also have you initial off the title search and Property Disclosure Statement before presenting the offer, showing the other side you have already reviewed them.
Inclusions, Exclusions & Completion Dates
Completion is when title transfers and funds move to the seller. Possession is when you get the keys. The adjustment date, usually the same as possession, is when property taxes, strata fees, and similar costs are prorated between buyer and seller. Your lawyer or notary handles the calculation on the statement of adjustment.
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Included items listed in the contract cover blinds, curtain rods, fixed mirrors, fixed carpeting, heating and air conditioning fixtures, and appliances. Write in anything you want to confirm stays: washer, dryer, fridge, stove, dishwasher, microwave, window coverings, and all keys, fobs, and remotes. If something matters to the seller and they want to take it, it goes in the exclusions section. Knowing this before writing the offer, by having your agent speak with the listing agent beforehand, can prevent a counter-offer over a built-in item.
The contract states the property and all included items must be in substantially the same condition at possession as when last viewed. The seller warrants there is no concealed damage behind rugs, wall hangings, or coverings. Professional cleaning with proof of receipt is a standard condition, though expectations on both sides of what "clean" means do not always align.
Before and After
| Section | Who It Protects | Key Detail |
|---|---|---|
| Rescission Period | Buyer | 3 business days; 0.25% penalty to exit |
| Subjects & Conditions | Buyer | Length negotiated; covers financing, inspection, strata docs |
| Deposit | Seller | Form default 24 hours of acceptance, often amended; amount negotiable |
| Assignment Clause | Seller | Parts A & B restrict contract resale without seller consent |
| Completion / Possession / Adjustment | Both | Three separate dates; prorations handled at lawyer's office |
Assignment, Agency & Final Signatures
The assignment clause restricts the buyer from transferring the contract to another party without the seller's written consent. Part B also states the seller is entitled to any profit if the buyer assigns the contract. Both sections are sometimes crossed out, which means a buyer could resell the contract for a profit before completion without sharing any of that gain with the original seller. If you are a seller and you see both parts struck through, understand what you may be agreeing to.
Agency disclosure confirms in writing who represents whom. Each party signs off on their designated agent and brokerage. Dual agency is effectively banned in BC. If a buyer is unrepresented, a separate disclosure of risks to unrepresented parties is included and must be signed.
The acceptance irrevocability clause confirms the offer is sealed once signed. The offer expiry time is equally critical: if the other party does not respond before that deadline, the offer is dead. Sending a counter-offer after expiry does not revive it.
The final acceptance date is the date the contract was fully executed after all negotiations. The three-day rescission period counts from the day after that date. Buyers and sellers each initial whether they are Canadian citizens or permanent residents.
Frequently Asked Questions
What is the rescission period and do I have to pay if I use it?
The rescission period gives buyers three business days after the final acceptance date to back out. If you exercise that right, you owe the seller 0.25% of the purchase price as compensation. Weekends and statutory holidays do not count toward the three days.
When is the deposit due in a BC home purchase?
The standard BC form makes it due within 24 hours of acceptance unless the contract says otherwise, and many offers change that to within 24 hours of subject removal. Check section 2 of your contract. The amount is negotiable.
What subjects should I include in my offer?
Most offers include financing, home inspection, fire and property insurance, title search, and the Property Disclosure Statement. Strata purchases also include review of strata documents such as Form B, two years of minutes, bylaws, and the depreciation report. Your agent can tailor this list to your situation.
What does the assignment clause mean for me as a seller?
The assignment clause restricts the buyer from transferring the contract without your written consent. Part B entitles you to any profit from such an assignment. If both parts are crossed out, the buyer could resell your contract at a profit before completion and you would not share in that gain.
What is the difference between the completion date and the possession date?
Completion is when funds transfer and title moves to the buyer. Possession is when you get the keys, typically one to a few days later. Property taxes and strata fees are prorated at the adjustment date, usually the same day as possession, and your lawyer or notary handles the math.
Alex Dunbar Personal Real Estate Corporation
REAL Broker BC Ltd. | Living in the Lower Mainland
Buying, selling or investing in the Lower Mainland? Whether you're new to the area or a longtime local, I'll help you make the right move. Book a 30-minute no-pressure call with me and we'll go over your goals, timeline and budget.
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