What Is a Foreclosure in BC?

Foreclosure in British Columbia is a legal process where a lender reclaims ownership of a property after the borrower defaults on their mortgage. BC uses a judicial foreclosure process, meaning court involvement is required, and all offers must receive approval from the BC Supreme Court.

Foreclosure properties are often sold below market value—but with important conditions, including the fact that they are sold “as-is, where-is.”

What Does “As-Is, Where-Is” Mean?

When a property is sold “as-is, where-is”, the buyer accepts the property in its current condition, with no warranties or guarantees from the seller (typically the lender). That means:

• No repairs or cleaning will be done.

• The buyer assumes all risks, including structural issues, unpermitted renovations, or damage.

• The seller won’t provide disclosures typically required in standard home sales.

Buyers must do their own due diligence, including inspections and title searches before making an offer. Once submitted, the offer is typically subject-free by the time of court approval.

Foreclosure Process in BC: Step-by-Step

Here’s a breakdown of how foreclosure works in British Columbia:

1. Petition Filed: The lender files a foreclosure petition with the BC Supreme Court.

2. Order Nisi Issued: The court grants an Order Nisi and may allow the borrower a redemption period (usually six months) to repay the debt.

3. Conduct of Sale Granted: If the borrower cannot repay, the lender gets permission to list the home for sale via a real estate agent.

4. Offer Made: A buyer submits a conditional offer, often with subjects like inspection or financing.

5. Subject Removal & Court Date Set: Once conditions are removed, a court date is scheduled for final approval.

6. Court Hearing: Competing buyers may submit sealed bids on the court date.

7. Court Decision: The judge reviews all bids and approves the best one.

What the First Offer Buyer Needs to Do

If you're the first buyer submitting an offer:

• Understand the Risks: You're buying “as-is, where-is.” There may be unknown issues like damage, tenancies, or unpaid property taxes.

• Remove Subjects: Before the court date, you’ll need to remove all conditions (inspection, financing, etc.) and make your offer subject-free.

• Deposit: Include a 5% deposit (typically by bank draft) payable to the listing brokerage upon subject removal.

• Financing: Foreclosures often require cash offers or mortgage pre-approval. Traditional lenders may be cautious due to property condition, so have financing secured early.

• Attend Court: You or your agent must be present at the court date, as overbidders can still outbid your offer.

How Bidding Buyers Should Prepare for the Court Date

If you’re planning to submit a competing bid on the court date:

1. Do Your Research: View the property ahead of time. Perform due diligence just as you would with any other home.

2. Arrive Early: Show up to court early to register your interest with the listing agent or lawyer.

3. Bring a Sealed Bid: Your offer must be in writing, sealed in an envelope, with no conditions—just the price and terms.

4. Include a Deposit: A certified bank draft for at least 5% of the offer price, made out to the listing agent’s brokerage, must be included.

5. Be Financially Ready: Offers must be subject-free and often cash or pre-approved mortgages only. You won’t get time to secure financing after the court date.

6. Judge Makes Final Decision: The judge will open all bids and select the most favorable one, often the highest price with clean terms.

Final Tips for Buying a Foreclosure in BC

• ✅ Hire a Realtor familiar with BC foreclosures. They’ll help you prepare a legally sound offer. You can click HERE.

• ✅ Get Legal Advice to review title issues, liens, or charges that may not be cleared before closing.

• ✅ Secure Financing Early – Many lenders require appraisals and won't fund damaged or vacant properties.

• ✅ Expect Delays – Court dates can be rescheduled or delayed based on legal issues or backlogs.
  

🧾 Foreclosure Process and Legal Information

1. Law Society of BC – Foreclosure Procedure Checklist
   https://www.lawsociety.bc.ca/Website/media/Shared/docs/practice/checklists/e-1.pdf

2. Legal Aid BC – Foreclosures and Residential Tenancies
   https://legalaid.bc.ca/document/185

3. BC Supreme Court Civil Rules
   https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/168_2009_00

🏛 Court Practice Directions

4. Practice Direction 66 – Foreclosure Proceedings (Mar 2025 update)
   https://www.courthouselibrary.ca/how-we-can-help/new-notable-legal-news/supreme-court-announcement-practice-direction-66-foreclosure

5. Practice Direction 62 – Sealed Bid Process for Foreclosures
   https://www.bccourts.ca/supreme_court/practice_and_procedure/practice_directions/civil/PD-62_Sealed_Bid_Procedures_for_Foreclosures_and_other_Matters_Involving_Sales_of_Land.pdf

🧑‍⚖️ Government and Court Tools

6. BC Court Services Online (Case Search)
   https://justice.gov.bc.ca/cso/esearch/civil/partySearch.do

7. Court Bailiffs – Government of BC
   https://www2.gov.bc.ca/gov/content/justice/courthouse-services/bailiffs

Conclusion

Buying a foreclosure in BC can be a valuable opportunity—but only with the right knowledge, preparation, and financing. Consult legal resources, understand your obligations, and be ready for court with a clean, competitive offer.