What is the Bulk Sales Act and does it apply when I buy a small business's real property?

The Bulk Sales Act was an older Ontario law that required a business selling most of its stock or assets outside the ordinary course of business to give notice to its creditors, so those creditors couldn't be left unpaid while the owner walked away with sale proceeds. It doesn't apply anymore — the Bulk Sales Act was repealed in Ontario in 2017, so there's no statutory notice-to-creditors requirement tied to buying a small business's real property or assets today.

That doesn't mean creditor risk has disappeared; it just moved to other tools. A buyer purchasing real property connected to a small business should still confirm there are no unpaid property taxes, unregistered liens, or writs of execution attached to the land, and should build appropriate representations, warranties, and indemnities into the purchase agreement to protect against undisclosed seller debts. If the deal also involves buying the business itself, not just the real property, separate due diligence on the company's liabilities becomes relevant too.

In short, don't rely on an old rule that no longer exists. A lawyer reviewing title, encumbrances, and the purchase agreement's protective language is the modern substitute for what the Bulk Sales Act used to do.