Backup Offer

A backup offer is an offer to purchase a property that is submitted after the seller has already accepted another buyer's offer. Under BC's Real Estate Services Act (RESA) and common practice, the backup offer only becomes effective if the first accepted contract is terminated or the seller is no longer bound by it. Verify the specific terms and conditions of any backup offer with a BC lawyer or notary before signing.

A backup offer typically becomes a binding contract only if it is accepted by the seller and all conditions in the backup offer itself are satisfied, including the condition that the primary contract has ended. Until the primary contract fails or terminates, the backup offer is generally conditional and not yet fully enforceable. Verify the exact wording and legal effect of your backup offer with a BC lawyer or notary before acting.

Yes, a seller may accept multiple backup offers in BC, typically in a ranked or sequential order (first backup, second backup, etc.). The Real Estate Services Act (RESA) and BCFSA Rules require that all material facts, including the existence and priority of other backup offers, be disclosed to all parties in accordance with the disclosure obligations of licensed real estate professionals. Verify the disclosure and prioritization terms of any backup offer arrangement with a BC lawyer or notary.

If the primary buyer removes all subjects (conditions) and the contract becomes firm and unconditional, the backup offer typically does not become active unless that firm contract is later terminated or breached. The backup offer remains conditional on the termination of the primary contract. Verify the specific language in your backup offer agreement with a BC lawyer or notary, as terms vary.

The requirement for a deposit on a backup offer depends entirely on the terms negotiated between the buyer and seller and set out in the backup offer contract. There is no statutory requirement under the Real Estate Services Act (RESA) or other BC legislation mandating a deposit on a backup offer, but it is common practice. Verify the deposit terms and trust account handling with your BC real estate professional, lawyer, or notary before submitting.

Whether you can withdraw a backup offer depends on the specific terms of the backup offer contract and whether it contains an irrevocable period or expiry clause. Under general BC contract law, if the backup offer has not yet been accepted or if a withdrawal right is included, withdrawal may be possible; if it is irrevocable and accepted, withdrawal may constitute a breach. Verify your rights and obligations under the specific backup offer document with a BC lawyer or notary before attempting withdrawal.

No. If the primary contract completes and the property title transfers to the primary buyer, the backup offer does not become effective, and no transaction occurs under the backup offer. Under BC's Property Transfer Tax Act (PTTA), PTT is assessed only when a property interest is actually registered, so no PTT would be owing under a backup offer that never activates. Verify current PTT obligations with a BC lawyer, notary, or the BC Ministry of Finance before closing.

Under the Real Estate Services Act (RESA) and the BCFSA Rules, a real estate licensee owes duties of disclosure of material facts to their client; whether the existence of a backup offer is material depends on the circumstances and the agency relationship. The seller's representative typically discloses backup offers to the seller; the primary buyer's representative discloses material facts that affect the buyer's interests. Verify disclosure obligations in your specific transaction with a BC lawyer or your managing broker.

The right to conduct a home inspection depends entirely on the terms of the backup offer contract itself. A backup offer may include a home inspection condition, a financing condition, or no conditions at all (firm offer). Verify the inspection rights, condition removal timelines, and any other contingencies in your backup offer with a BC lawyer or notary before the offer becomes active.

Yes. A backup offer in BC can be made subject to any lawful conditions negotiated between the buyer and seller, including a condition that the buyer must first sell their current property. However, the seller may be less willing to accept a backup offer with multiple conditions, and the backup offer's priority and enforceability depend on the specific wording. Verify the legal effect and drafting of subject-to-sale clauses in a backup offer with a BC lawyer or notary before submitting.