Firm Deal

A firm deal is a contract of purchase and sale in which all subjects (conditions) have been removed or waived, making the agreement binding on both buyer and seller. From that point forward, the buyer's deposit is at risk if the buyer defaults, and the seller cannot accept competing offers. This is a common-law contract principle enforced under BC's general contract law and the Land Title Act, RSBC 1996, c. 250, which governs registration of title transfers upon completion.

A contract becomes firm when all subjects or conditions—such as subject to financing, subject to inspection, or subject to the sale of another property—have either been satisfied and formally removed in writing by the buyer, or have expired without being waived or removed. Until all conditions are removed, the contract remains conditional and either party may have the right to terminate depending on the wording of the subject clause. Verify the specific removal procedure in your contract with a BC lawyer or notary before acting.

No. Once a contract is firm (all subjects removed), the seller is legally bound to complete the sale to that buyer and cannot accept backup or competing offers. Accepting another offer at that stage would constitute a breach of contract, entitling the original buyer to remedies such as specific performance or damages under BC common law. The Real Estate Services Act, SBC 2004, c. 42, requires licensees to act in their client's best interests and avoid conflicts, reinforcing this principle.

Yes. Once the contract is firm, the buyer's deposit (typically held in the brokerage's trust account under RESA Rules) is at risk if the buyer defaults or fails to complete the transaction without lawful excuse. The seller may claim the deposit as liquidated damages or seek other remedies, depending on the contract terms. Verify your rights and obligations with a BC lawyer or notary, as the outcome depends on the specific wording of the contract and circumstances of any default.

If a buyer attempts to terminate a firm contract without lawful justification, the buyer is in breach of contract. The seller may retain the deposit, sue for specific performance to force completion, or claim damages for any loss (such as a lower resale price or carrying costs). The Real Estate Services Act, SBC 2004, c. 42, and RESA Rules govern how deposits are held and released, but the contractual remedies are determined by BC contract law. Consult a BC lawyer immediately if you are considering or facing a default.

Yes. Both buyer and seller may agree in writing to cancel (rescind) a firm contract at any time, typically through a mutual release agreement. This often involves negotiation over the return of the deposit and any other costs incurred. Any such mutual release should be drafted or reviewed by a BC lawyer or notary to ensure it is binding and protects both parties' interests, and must comply with the brokerage trust account rules under the RESA Rules.

No. A firm deal means the contract is binding, but legal title does not transfer until the completion date specified in the contract. On completion, the buyer's lawyer or notary registers a transfer of title at the BC Land Title Office under the Land Title Act, RSBC 1996, c. 250, and the buyer pays the balance of the purchase price (plus applicable Property Transfer Tax under the Property Transfer Tax Act, RSBC 1996, c. 378). Until registration, the seller remains the registered owner.

A subject-free offer is an offer that contains no conditions (subjects) at the time of acceptance, so it becomes a firm deal immediately upon the seller's acceptance. A firm deal can also result from a conditional offer once all subjects are formally removed. In both cases, the contract is binding and neither party can withdraw without breaching the agreement. Verify the status of any conditions with your real estate licensee or legal advisor before assuming a contract is firm.

No (as of 2026-07-27 — verify current). BC does not have a statutory cooling-off or rescission period for firm contracts of purchase and sale for resale residential real estate. Once a contract is firm, it is binding. (Note: new strata developments sold by a developer may have a seven-day rescission right under the Strata Property Act, SBC 1998, c. 43, s. 21, but this applies only to disclosure statements for new strata units, not resale contracts.) Verify your specific situation with a BC lawyer or notary.

The deposit is typically held in the real estate brokerage's pooled or separate trust account, as required by the Real Estate Services Act, SBC 2004, c. 42, and the BCFSA's RESA Rules. The deposit remains in trust until completion, at which point it is released to the seller (or applied to the purchase price), or until the parties agree in writing to its release, or a court orders otherwise. The brokerage may not release funds without proper authorization. Verify trust account procedures with your brokerage or a BC lawyer or notary.