What If the Buyer Wants to Delay Completion in British Columbia?

Completion is the day the sale actually finishes: the buyer pays and you hand over a registrable transfer. When a buyer asks for more time, often because financing or a move is not lining up, you may feel stuck between being flexible and protecting your own plans.

This article explains how to approach the request in British Columbia, how to record an extension if you agree, and what to think about before you refuse. It is general information, and the contract's exact wording matters a great deal.

This article covers the law of British Columbia.

Do you have to agree?

Start with your contract of purchase and sale. The completion date, any terms about time being important, and what happens if a date is missed are all set by what you and the buyer signed.

Because the answer turns on the contract and the facts, it is worth having a lawyer or notary read it before you reply, especially if you already have a purchase of your own depending on this sale.

Documenting an extension

If you agree, put it in writing. Under the Law and Equity Act, a contract respecting land is generally not enforceable unless it is in a writing signed by the party to be charged or their agent, or that party did an act or acquiesced in an act showing a contract was made, or the other party reasonably relied on it and changed position, and paying or accepting a deposit counts as such an act, though a lease of land for 3 years or less is excluded from the writing requirement. Relying on a casual phone call or text invites a later argument about what was agreed.

A written extension is usually best prepared by the lawyer or notary handling the sale. Your side of completion remains the same: the seller of land in fee simple must deliver a transfer registrable under the Land Title Act. A notary public in good standing, as well as a lawyer, can draw a registrable property instrument.

• The new completion date, stated clearly
• Whether other dates in the contract move too, such as possession
• Any extra amount the buyer will pay for the delay, if you negotiate one
• Signatures of both you and the buyer
• Confirmation that all other contract terms stay the same

Weighing the risks

Both choices carry risk, and neither is automatically safe.

If it ends in a dispute

If a buyer does not complete, sellers often ask about the deposit. The Law and Equity Act has no section expressly fixing deposit forfeiture, but it lets the court relieve against all penalties and forfeitures on terms it thinks fit, which is the basis on which a buyer may ask the court for relief. So keeping a deposit is not always straightforward.

A damages claim against a defaulting buyer is a court proceeding, and it generally must not be started more than 2 years after the day the claim is discovered. Discovery means when you knew or reasonably ought to have known that loss occurred, who caused it, and that a court proceeding is appropriate. Disputes about title are different: either party to a sale of land can apply summarily to the Supreme Court about a requisition or objection to title, except a question affecting the contract's existence or validity.

What to do next

• Read the completion and default terms in your contract
• Ask the buyer why more time is needed and for how long
• Check how a delay affects your own mortgage payout, purchase or move
• Do not agree informally; get any change in writing and signed
• Speak with a lawyer or notary before you refuse or threaten to end the contract

Frequently asked questions