From Offer to Keys: The Home Buying Timeline in BC

Having your offer accepted is exciting, and then the questions start. When is the deposit due? What does removing subjects mean? When do I actually get the keys? Here is how a typical resale purchase unfolds in BC, step by step, so you know what is coming and what to do at each stage.

The short version

Before you make an offer

The smoothest purchases start well before the offer. Get pre-approved for a mortgage so you know your budget, set aside money for closing costs on top of your down payment, and line up a lawyer or notary and a home inspector, so you are not scrambling once the clock starts. In BC, home inspectors must be licensed by Consumer Protection BC.

Step 1: Your offer is accepted

In BC, an offer is written on a Contract of Purchase and Sale. It sets out the price, the deposit, any subjects (conditions) and the date they must be removed by, what is included with the home, and three key dates. Once you and the seller have both signed, you have an accepted offer. If it includes subjects, it is not firm yet.

Step 2: The deposit

The standard BC contract calls for the deposit to be paid within 24 hours of acceptance, unless the contract says otherwise. It is held in trust and credited toward your purchase price on completion. The amount is negotiable, and I will advise you on what makes sense for the property. Have the funds ready to move when you write the offer.

Step 3: The home buyer rescission period

Most residential purchases in BC come with a three-business-day home buyer rescission period. It starts on the next full business day after your offer is accepted and ends at 11:59 p.m. on the third business day. Weekends and statutory holidays do not count, so for an offer accepted on a Friday, the period would normally run from Monday to Wednesday.

If you change your mind during that window, you can cancel by giving the seller written notice and paying a fee of 0.25% of the purchase price, which is $2,000 on an $800,000 home. The rescission period cannot be waived. It does not apply to properties on leased land, leasehold interests, sales at auction or court-ordered sales, and presales follow their own rules.

Step 4: Working through your subjects

Subjects give you time to confirm what you need to before you commit. The most common are:

• Financing. Your lender confirms your mortgage, often after an appraisal of the property.
• Inspection. A licensed home inspector checks the home's condition and flags any concerns.
• Strata documents. For condos and townhouses, you review the Form B, minutes, depreciation report, bylaws and financial statements.
• Insurance. You confirm you can insure the home at a reasonable cost.
• Sale of your current home. Sometimes included if you need to sell first, although sellers tend to prefer offers without it.

Subject periods are often about a week, but they are negotiable. If something turns up, such as an issue in the inspection, we can negotiate a price adjustment or a repair, or you can choose not to remove subjects, which ends the contract.

Step 5: Subject removal, and the deal is firm

When you are satisfied, you sign a subject removal and the contract becomes firm. From this point, backing out can cost you your deposit and leave you open to a claim for the seller's losses, so do not remove subjects until your financing is confirmed and you are comfortable with everything you have reviewed.

Step 6: Getting ready for completion

Between subject removal and completion, a few things happen behind the scenes:

• Your lawyer or notary receives the contract, searches title, prepares the transfer documents and the property transfer tax return, and works with your lender on the mortgage.
• You arrange home insurance starting on the completion date. Your lender will ask for proof of it.
• You sign your documents and provide your down payment and closing costs to your lawyer or notary, usually a few days before completion.
• You book your move for possession day, not before.

Step 7: Completion day

On the completion date, your lawyer or notary registers the transfer at the Land Title Office, your mortgage funds are released and the seller is paid. Property transfer tax is due when the transfer is registered, unless you qualify for an exemption, such as the ones for first-time buyers and newly built homes.

Step 8: Possession, and keys in hand

You get vacant possession on the date and at the time set out in your contract, commonly the day after completion. Keys are usually passed along through the REALTORS® involved. Once you are in, it is a good idea to test the smoke alarms, change the locks or entry codes, and confirm your utilities are in your name.

Costs to budget for besides your down payment

• Property transfer tax. 1% on the first $200,000 and 2% on the portion up to $2 million, with higher rates above that, unless you qualify for an exemption. On an $800,000 home, that is $14,000.
• Legal or notary fees, including title insurance and search costs.
• A home inspection, and sometimes an appraisal.
• Adjustments for property taxes or strata fees the seller has already paid.
• Mortgage default insurance, if your down payment is under 20%. The premium is usually added to your mortgage.
• Moving costs, home insurance and utility hookups.

Questions buyers often ask me

How long does it take to buy a home in BC?

It depends on the dates you negotiate. Subject periods are often about a week, and completion is commonly set several weeks after that, so many purchases take one to two months from accepted offer to keys. Your timeline can be shorter or longer to suit you and the seller.

Can I back out after my offer is accepted?

During the three-business-day rescission period, you can cancel by giving written notice and paying 0.25% of the purchase price. You can also choose not to remove your subjects by the deadline, which ends the contract. Once subjects are removed, the deal is firm, and backing out can cost you your deposit and more.

What is the difference between completion and possession?

Completion is when the transfer is registered and the seller is paid. Possession is when you get the keys and can move in, commonly the day after completion.

When is property transfer tax paid?

It is paid when your lawyer or notary registers the transfer on the completion date. First-time buyers and buyers of newly built homes may qualify for a full or partial exemption.

Does the rescission period apply to presales?

No. Presales are covered by separate rules under BC's Real Estate Development Marketing Act, which include their own right to cancel.

Getting ready to buy? Try my mortgage calculator to estimate your payments, read what interest rates mean for buyers in Greater Vancouver and the Fraser Valley, and browse my current listings.

This article is general information, not legal advice. Your contract sets the terms of your purchase. For details on the rescission period, see the BC Financial Services Authority's Home Buyer Rescission Period guide.