Multiple Offers in BC: How the Rules Work for Buyers

When several buyers want the same home, things move fast. You may have little time to think, and you may not know what the other offers look like.

This article explains how the process generally works in British Columbia and where regulator guidance fits. Because practices can differ by area, ask your realtor to explain exactly what applies to your situation.

This article covers the law of British Columbia.

How multiple offers generally work

The seller, usually through their agent, receives your offer along with others and decides how to respond. The seller can accept one, reject them, or counter. BCFSA's offers guidance sets minimum requirements for licensees and recommends that only one offer be countered at a time.

An offer is a legal document. A contract respecting land is generally not enforceable unless there is a signed writing showing the contract was made and giving a reasonable indication of its subject matter. Read what you sign, even under time pressure.

What realtors must disclose

BCFSA may make rules about licensees' trust accounts, disclosures in relation to real estate services, and standard forms that licensees must use. It may also require disclosures to parties to a trade who are not represented by a licensee.

Whether you will be told how many offers have been made can depend on current rules, local real estate board practice and the facts. Do not assume you will be told. Ask your realtor in writing what information they can and will share, and what they are obliged to disclose.

Protecting your deposit and your position

A buyer usually makes a deposit with the offer or after the offer is accepted, and it is usually held in the licensee's brokerage trust account, with the brokerage holding it as stakeholder. Licensees must pay money received into a trust account, and withdrawals are controlled by the Real Estate Services Act.

Some offers provide for no deposit until after subjects are removed. BCFSA advises that a seller's agent should discuss the risk of not receiving a deposit at acceptance, and the seller can counter-offer to increase the deposit or require it before subject removal. Expect that a seller may push back on a late deposit.

For new developments, developers must hold buyers' deposits in trust under the Real Estate Development Marketing Act, and BCFSA can investigate if they did not.

Balancing subjects against competitiveness

In a competitive situation, buyers sometimes shorten or drop subjects to make an offer more attractive. That can save a deal, but it also removes your protection. If you drop a financing or inspection subject and a problem appears later, you may still be bound.

• Do your homework before the offer date, such as arranging a pre-inspection if the seller allows it.
• Confirm your financing in advance so a financing subject is less necessary.
• For a strata lot, review the documents early, noting that the Information Certificate must be provided within one week of a request.
• Decide your walk-away price before the negotiation begins.

What to do next

• Ask your realtor how competing offers will be handled and what will be disclosed.
• Get written confirmation of how and when your deposit will be paid and held.
• Have a lawyer or notary review your offer wording, especially if you remove subjects.
• Set a firm budget, including closing costs, before you start.
• Keep copies of every signed offer, counter-offer and change.

Frequently asked questions