Court Ordered Sale

A Court Ordered Sale in BC is governed by Rule 21-7 of the BC Supreme Court Civil Rules (B.C. Reg. 168/2009), which sets out the procedure for foreclosure actions conducted through the BC Supreme Court. Unlike some other Canadian provinces, BC does not use a power-of-sale process; foreclosure is exclusively judicial, a distinction also reflected in the Law and Equity Act (RSBC 1996, c. 253). The court retains supervisory control over the entire process, including ultimate approval of any accepted offer.

An Order Nisi is a court order issued by the BC Supreme Court that formally establishes the mortgagor's default and grants a redemption period during which the borrower may pay out the debt and reclaim the property. If the debt is not redeemed within that period, the lender may apply to the court for an Order Approving Sale, which is what enables the property to be listed and sold as a Court Ordered Sale under Rule 21-7 of the BC Supreme Court Civil Rules. The Order Nisi is therefore the procedural prerequisite to the Court Ordered Sale stage.

Once a buyer's offer has been accepted by the conduct-of-sale party (typically the mortgagee or a court-appointed receiver), the parties attend a scheduled approval-of-sale hearing before a BC Supreme Court judge or master. At that hearing, any person may tender a competing offer in open court, and the court may approve the highest acceptable offer regardless of which offer was originally accepted — meaning the original buyer's accepted offer is not guaranteed to succeed. The court's overriding concern is to obtain the best possible price for the property to protect all interested parties, including the mortgagor.

Because competing offers may be submitted in open court at the approval hearing, the court requires that any offer presented for approval be unconditional — meaning all subjects such as financing and inspection must already be waived or fulfilled before the hearing date. A conditional offer cannot practically compete in open court or be approved by the court, since the competing-offer process demands that all bids be firm and binding at the time they are tendered. Buyers should ensure their due diligence is fully completed prior to the hearing.

Deposits in BC Court Ordered Sales commonly range from five to ten percent of the purchase price, though the specific amount is set by the terms established in the conduct-of-sale order or the listing itself. The deposit is typically required to be paid and held in trust before or at the time subjects are removed, so that the offer presented at the approval hearing is fully unconditional and backed by funds. Licensees handling trust funds in connection with a Court Ordered Sale must comply with the trust account requirements under the Real Estate Services Act (RESA) and BCFSA's rules.

Yes, properties sold by Court Ordered Sale in BC are conveyed on an 'as-is, where-is' basis, meaning the selling mortgagee or receiver typically provides no representations or warranties about the property's condition. Because the selling party usually has no personal knowledge of the property's condition, standard seller disclosure documents such as a Property Disclosure Statement are generally not provided. Buyers are strongly encouraged to conduct their own thorough due diligence — including inspections — before removing subjects, as recourse after court approval is extremely limited.

A licensee representing a buyer in a Court Ordered Sale must comply with all agency, disclosure, and conduct obligations under the Real Estate Services Act (RESA) and the rules and guidelines published by the British Columbia Financial Services Authority (BCFSA). This includes providing the buyer with a disclosure of representation in trading services, acting in the buyer's best interests, and clearly explaining the unique risks of a Court Ordered Sale — including the 'as-is' nature of the conveyance, the competitive open-court bidding process, and the irrevocable nature of a court-approved offer. Licensees must not misrepresent the process or omit material facts relevant to the client's decision.

Yes, Property Transfer Tax (PTT) under the BC Property Transfer Tax Act applies to Court Ordered Sale transactions in the same way it applies to standard purchases, calculated at one percent on the first $200,000 of fair market value, two percent on the portion between $200,000 and $3,000,000, and three percent on the portion above $3,000,000, with an additional two percent on the residential portion above $3,000,000. Eligible first-time buyers may qualify for the First-Time Home Buyers' exemption (full exemption on properties up to $835,000 as of 2026), provided all program criteria under the Property Transfer Tax Act are met. Buyers should confirm their eligibility and the applicable thresholds with the BC Ministry of Finance.

Yes, a strata lot can be sold through a Court Ordered Sale, and the Strata Property Act (SBC 1998, c. 43) continues to apply to the property and its purchaser after the sale is completed. Buyers of a strata lot through a Court Ordered Sale should be aware that strata documents — such as the Form B Information Certificate, depreciation report, financial statements, and strata bylaws — may be difficult to obtain through the usual channels given the 'as-is' nature of the sale, and any outstanding strata fees or special levies may affect the transaction. The court approval does not extinguish the strata corporation's rights or the purchaser's obligations under the Strata Property Act.

Under Rule 21-7 of the BC Supreme Court Civil Rules, if the court approves a competing offer submitted in open court at the approval hearing, the original buyer's contract is not approved and that buyer will not purchase the property. The original buyer's deposit is returned to them, but they have no legal recourse against the selling party for the court's decision to accept a higher bid, since the court's authority to approve or reject any offer is an inherent feature of the BC Court Ordered Sale process. This irrevocable and competitive nature materially distinguishes a Court Ordered Sale from a standard MLS® transaction.