What Is a Contract of Purchase and Sale in British Columbia?

A contract of purchase and sale is the document that turns an accepted offer into a binding agreement to buy a home. In British Columbia most buyers sign a standard form, often with a realtor guiding them through the blanks.

Because the form moves quickly and the stakes are high, it helps to know what each part does before you sign. This article explains the basics in plain words and points out where you should slow down and ask questions.

This article covers the law of British Columbia.

What the contract does and why writing matters

The contract records the deal between you and the seller: the property, the price, the deposit, the conditions you must satisfy, and the dates for completion and possession. Once both sides sign and the offer is accepted, it is the document a court would look at if there were a dispute.

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. Two alternatives exist: acts by the party to be charged that indicate a contract was made, and reasonable reliance that would make it unfair not to enforce the deal. These are fallback routes, so do not plan around them.

There is an exception. The writing requirement does not apply to a lease of land for a term of 3 years or less, or to a contract to grant such a lease.

The parts of the form worth reading slowly

Every line of the form matters, but a few parts decide most of the risk. Read each one aloud with your realtor or lawyer until you can explain it in your own words.

• Price and deposit: the amount you agree to pay and the money you hand over to show good faith.
• Subject clauses: conditions written into the offer, such as financing, an inspection or a review of strata documents. How each one works, and what happens if it is not met, depends on the wording of your contract, so ask about it before you sign.
• Completion, possession and adjustment dates: the dates the contract sets for the key steps of the sale. What each date means depends on the wording of your form, so confirm it with your realtor or lawyer.
• Inclusions and exclusions: which appliances, fixtures and other items stay with the home.
• Any extra terms added to the form: these can change the standard wording, so read them most carefully.

If you are buying a strata lot, the strata corporation must give an Information Certificate within one week of a request by an owner, a purchaser, or a person they authorize. Buyers use it to review the strata's finances and rules, and it is commonly made a subject condition.

Costs that sit outside the price

The price on the form is not your full cost. Property transfer tax is charged on fair market value at 1% on the portion up to $200,000, 2% on the portion above $200,000 up to $2,000,000, and 3% on the portion above $2,000,000. A further 2% applies to the residential value above $3,000,000, and for mixed-class property only the residential portion is counted.

The buyer, called the transferee, must pay the tax and file a return when applying to register the transfer. In practice your legal professional files the return and the tax is normally paid through them on completion.

The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act restricts non-Canadians from buying residential property in urban centres. It was extended from January 1, 2025 to January 1, 2027, with a $10,000 fine for contraventions. Because that date is close, its current status is worth confirming. If any of this might apply to you, raise it before you sign.

Who prepares and registers the paperwork

A notary public who is enrolled and in good standing may draw instruments relating to property that are meant to be registered, so notaries can prepare transfers and mortgages. Lawyers can do this work as well, since drawing a registrable instrument falls within the practice of law.

An individual buyer acting without counsel solely on their own behalf is allowed to do so, although the registered documents are normally prepared and filed by a lawyer or notary. The registrar may refuse an application if there are reasonable grounds to believe the tax is unpaid or the return is incomplete or unfiled.

What to do before you sign

• Ask for the full contract, including every schedule and addendum, ahead of time.
• Write down each date and what must happen by then.
• Confirm the deposit amount, when it is due and who holds it.
• Budget for property transfer tax and other closing costs.
• Check whether any exemption or extra tax could apply to you.
• Have a lawyer review the contract if anything is unclear or has been changed from the standard wording.

Frequently asked questions