Deadline to Sue Over a Hidden Property Defect in BC

You bought a home, and months or years later you find water damage, a failed foundation or something else no inspection revealed. The next question is how long you have to act. Missing a deadline can end a claim no matter how strong it was.

British Columbia's Limitation Act sets two overlapping clocks. This article explains both, when each starts, and the exceptions. Your own dates should be checked with a lawyer promptly.

This article covers the law of British Columbia.

Two clocks, not one

A court proceeding must not be started more than 2 years after the day the claim is discovered, which is the basic limitation period. Separately, a proceeding must not be started more than 15 years after the day of the act or omission the claim is based on, even if the 2-year period has not run. This is the ultimate limitation period.

Whichever expires first generally ends the claim, subject to the exceptions below.

When the 2-year clock starts

A claim is discovered on the first day you knew or reasonably ought to have known all of the following:

• That injury, loss or damage occurred.
• That it was caused or contributed to by an act or omission.
• That the act or omission was that of the defendant.
• That a court proceeding would be an appropriate means to seek a remedy.

The words "ought to have known" matter. A stain, a musty smell or a contractor's report can start the clock even if you did not yet understand the full cause. Keep dates for when each sign appeared and who told you what.

The 15-year limit and hidden defects

For a hidden defect, the 15 years run from the act or omission, not from when the buyer found the defect. A defect found late in that window can leave little or no time.

There is an important exception. If the defendant wilfully conceals that damage has occurred or that it was caused by an act or omission, or misleads you about whether a court proceeding is appropriate, the act or omission is treated as occurring on the discovery day. That can extend the 15-year period, for example where a seller hid a defect. Proving concealment is a question of evidence, and a lawyer can assess it.

Other rules that can change the dates

• Minors and disability: for a minor, the claim is discovered on the later of the day the minor turns 19 and the ordinary discovery date, and the periods do not run while a person is under a disability.
• Acknowledgment: if a person acknowledges liability before a limitation period expires, the claim is treated as not discovered before the acknowledgment day. Generally the acknowledgment must be in writing, signed, and made to the claimant or their agent.
• Counterclaims: if a proceeding is started within the basic period, a related claim can be raised by counterclaim, third-party proceedings or set-off even if its own period has expired.
• Other statutes: the Act does not apply to a claim for which another enactment has set a limitation period, except as that enactment provides.

A seller's casual comment such as "we will look into it" is unlikely to meet the acknowledgment requirements, so do not rely on informal assurances to hold your deadline.

What to do next

Treat the discovery date as the earliest day you might be said to have known, and count 2 years from there. The seller's disclosure also matters: sellers must disclose known latent defects, meaning defects a reasonable inspection would not reveal.

• Write down the date you first noticed any sign of the problem and each step since.
• Keep the purchase contract, any Property Disclosure Statement, inspection reports and photographs.
• Get a qualified inspection or engineer's report on the cause.
• Do not rely on verbal promises; ask a lawyer whether a signed written acknowledgment is possible.
• See a lawyer well before the second anniversary of your discovery date.

Frequently asked questions