A backup offer is an offer on a property that has already been accepted by another buyer, and it only becomes effective if the first accepted contract ends or the seller is no longer obligated under it.
A backup offer is a written offer submitted on a property that already has an accepted contract in place with a first buyer. The backup offer does not become binding on the seller until the first accepted contract is terminated or the seller is otherwise released from it. Once the first contract falls through, the backup offer can automatically move into first position and become the active, binding contract.
Yes. Under the Real Estate Services Act (RESA) and its Rules, a licensee representing a seller has a duty to present all offers to the seller promptly, including backup offers received while an existing contract is in place. The British Columbia Financial Services Authority (BCFSA) expects licensees to act in their client's best interests, and suppressing or failing to communicate a legitimate offer would be a breach of that duty. Licensees should document the presentation of any backup offer carefully.
Yes. BCFSA guidance under RESA requires licensees to provide accurate and timely disclosure of material facts to parties in a transaction. The existence of an already-accepted offer is material information that a prospective buyer needs before submitting a backup offer. A licensee who conceals this fact could face disciplinary action under RESA.
Yes, a backup offer in BC can include subject conditions, such as financing approval or a home inspection, just as any standard purchase contract can. However, the timelines for satisfying those conditions would typically begin running only once the backup offer becomes the active, binding contract. Buyers and their licensees should draft the backup offer carefully to specify exactly when subject removal periods are triggered.
When a backup offer involves a strata lot, the eventual active contract will still require the buyer to obtain and review strata documents such as the Form B Information Certificate, Form F Certificate of Payment, depreciation report, and meeting minutes, all governed by the Strata Property Act (SBC 1998, c. 43). Subject conditions related to strata document review should be clearly included in the backup offer so the buyer has adequate time once the offer becomes active. The Strata Property Act sets out specific timeframes and obligations for the strata corporation to provide these documents.
Once a backup offer becomes the active, binding purchase contract, Property Transfer Tax (PTT) obligations arise in the normal manner under the BC Property Transfer Tax Act. PTT is generally calculated at 1% on the first $200,000 of the fair market value, 2% on the portion between $200,000 and $3,000,000, and 3% on the portion above $3,000,000, with an additional 2% on the residential portion above $3,000,000. Exemptions such as the First-Time Home Buyers' Program (full exemption up to $835,000) or the Newly Built Home Exemption (up to $1,100,000) may apply if the backup buyer meets the eligibility criteria under the Act.
A seller may receive and acknowledge multiple backup offers, but care must be taken to rank or prioritize them clearly to avoid conflicting obligations. BC licensees acting for sellers should advise clients to work with legal counsel to structure backup offer agreements so that the priority of each backup position is unambiguous. BCFSA expects licensees to handle multiple-offer situations transparently and in accordance with their duties under RESA.
Yes. When a licensee collects personal information from a backup buyer — such as name, contact details, or financial information — that collection, use, and disclosure is governed by BC's Personal Information Protection Act (PIPA). Under PIPA, licensees must identify the purpose for collecting personal information, obtain consent, and protect that information appropriately. If a licensee sends follow-up commercial electronic messages to a backup buyer who does not proceed, Canada's Anti-Spam Legislation (CASL) may also apply to those communications.
Foreclosure in BC is a judicial process governed by the BC Supreme Court Civil Rules and the Law and Equity Act; there is no power-of-sale mechanism as exists in some other provinces. In a court-ordered sale, offers — including backup offers — may require court approval, and the court has discretion over which offer is ultimately accepted. A backup buyer in a foreclosure scenario should be aware that the process is governed by court oversight rather than standard contractual acceptance, and timelines can differ significantly from a conventional sale.
If a licensee or brokerage represents both the seller and a backup buyer, a limited dual agency or related conflict-of-interest situation arises that is strictly regulated under RESA and BCFSA rules. BC rules significantly restrict dual agency, and licensees must provide full written disclosure of any conflict and obtain informed consent from all parties before proceeding in any permitted limited circumstance. Licensees should consult current BCFSA guidance on dual agency restrictions to ensure compliance, as the rules in this area are strictly enforced.
Verify the specific statutory language, thresholds, deadlines and current guidance directly with the governing authority: