What Searches Should You Run Before Buying a Business in British Columbia?

This answer covers the law of British Columbia.

Before buying a business in British Columbia, you should generally search the Personal Property Registry, the corporate registry, land title if land is involved, the federal bankruptcy records and PST status. The Personal Property Registry records security agreements and commercial liens, but it does not show builders' or family maintenance liens, which are filed elsewhere. A staff search costs $10, and direct online access is limited to professionals. Registrations can last up to 25 years or indefinitely, so check the term.

A prior lender's registration can rank ahead of your claim, though a purchase money lender may rank first. The ordinary-course buyer protection covers customers, not someone buying the whole business. If the seller's lender is registered against the assets, a person with an interest in that property can give a written demand, and the lender must then register a change within 40 days, generally without a fee.

A corporate search shows current directors. A title search costs $11.06 plus an electronic fee. The federal bankruptcy search has a minimum fee of $8, worth re-checking. Without a PST clearance certificate, you can be liable for the seller's unpaid PST. Also confirm WorkSafeBC clearance separately.