In British Columbia, court-ordered sales can present a chance to buy property at a competitive price, but the process is different from a typical real estate transaction and carries certain risks. Here's a straightforward explanation of what you can expect.A court-ordered sale happens when a property is sold under the direction of the court, usually because the lender has foreclosed on it due to unpaid debts. The court oversees the process, and the property is sold “as-is, where-is.” This means you’re buying it in its current condition with no guarantees—any damage or outstanding fees are your responsibility.Since these sales follow a unique legal process, it’s important to work with a knowledgeable realtor and a lawyer. They can help you understand the rules, evaluate the property, and support you through each step.
When you submit an offer, you can include subjects like financing or inspection, and you don’t need to provide a deposit right away. If your offer is accepted, that’s when you begin your due diligence. This could involve a property inspection (if permitted), a title search to check for liens or debts, and reviewing strata documents if it’s a condo. Once you’ve completed these checks and removed any conditions, your offer becomes firm, and you’ll need to provide a deposit—usually by bank draft. That deposit is only refundable if the court doesn’t approve the sale.
Once your offer is firm, the process moves to a court hearing. These hearings are public, and other buyers can attend and submit their own bids. Competing offers must be unconditional and include a deposit. The judge will review all offers and select the one they believe is best, usually the highest bid. The judge’s decision is final. If your offer is accepted, the sale proceeds. If not, another buyer will get the property.
After court approval, the legal paperwork is completed (typically in one to two weeks), financing is finalized, and possession of the property is transferred to you.
It’s important to be financially prepared in advance, as the process moves quickly once your offer is accepted. You should also understand that buying “as-is” means you’re taking on all the risks, including any repairs or legal issues that arise later. Having a lawyer involved is highly recommended, especially to help you understand the fine print and terms of the sale.
Here are some common questions and answers:
- “As-is, where-is” means the property comes with no promises—what you see is what you get, and you’re responsible for anything that comes with it.
- The deposit is refundable only if the court doesn’t approve the sale. Once approved, it’s non-refundable.
- You can’t back out after court approval without legal consequences.
- You submit an offer with conditions, complete your checks if it’s accepted, then remove conditions and provide a deposit.
- Other buyers can outbid you during the court hearing.
- The full process can take several weeks, with the court and paperwork usually wrapping up in one to two weeks after subjects are removed.
- If multiple bids are submitted in court, the judge chooses the best one, often the highest.
- A lawyer isn’t required but is strongly advised to help you manage the legal side of the deal.