Buying a
court-ordered sale
A considered guide for home buyers and investors in the Okanagan.
Explore propertiesCourt sales, with John & Kaila
Before you bid
Myths, mistakes and what really happens in a BC court-ordered sale
Most of what buyers “know” about foreclosures comes from US TV or Ontario's power-of-sale system. In BC, a judge supervises the sale and approves the price. Here's what to know before you write an offer.
Myth
“Foreclosures sell for 30–50% below market.”
Reality
The court must find the price reasonable and will refuse offers well below appraisal. Discounts exist, but they're usually modest.
Myth
“My offer was accepted, so I've bought it.”
Reality
It's only the starting bid. Other buyers can outbid you with sealed bids at the court hearing, and you have no right to match.
Myth
“BC foreclosures are power of sale.”
Reality
BC uses court-ordered sales. The lender can't sell without the court approving the price.
Myth
“I can negotiate repairs after the inspection.”
Reality
Sales are "as is, where is" with no warranties. Build repairs into your price from the start.
Myth
“I'll get a Property Disclosure Statement.”
Reality
Usually not. Your own inspection is your protection.
Myth
“I'll have a few days to change my mind.”
Reality
There's no rescission period. Once the court approves your bid, you're bound.
Myth
“The owner is gone, so it's mine on closing day.”
Reality
The owner can pay off the mortgage and cancel the sale right up until court approval. Tenants may have rights the sale doesn't end.
Mistakes that cost buyers
Bidding without firm financing.
Sealed bids must be subject-free.
Avoid it: Get full approval for this property, or bid with cash.
Skipping the inspection.
Distressed homes hide expensive problems.
Avoid it: Inspect before the hearing, including sewer scope and permits.
Not reading the court order and Schedule A.
Schedule A overrides the standard contract.
Avoid it: Review both with your lawyer before you write.
Missing the 9:45 a.m. deadline.
Sealed bids must be in the courtroom by 9:45 a.m. on hearing day.
Avoid it: Prepare your bid days ahead and have your REALTOR® deliver it.
Underestimating the true cost.
Transfer tax, legal fees, repairs and holding costs add up.
Avoid it: Budget a 10–15% contingency and set your maximum bid from it.
Spending money before approval.
The owner can still redeem or the court can choose another buyer.
Avoid it: Spend only what you need to bid with confidence.
Assuming the home will be empty.
Tenants may need four months' notice.
Avoid it: Confirm who lives there and what the court order says about possession.
Relying on the listing agent.
They act for the seller.
Avoid it: Work with your own REALTOR® who knows court sales.
Get the full checklist
Download “Before You Bid”, our free 6-page briefing with all 10 myths, 12 mistakes and a pre-bid checklist.
General information about BC court-ordered sales, not legal advice. Get advice from your own BC lawyer before you bid.
Informed decisions
begin here.
Understand the process before making your next move.
The Foreclosure Buyer's Guide
Our free guide to buying a court-ordered sale in British Columbia — from the first missed payment to the approval hearing, the vesting order and the keys.
General information, not legal advice. Speak with a BC lawyer before acting.
Financing a court-ordered purchase
We work with bank mortgage specialists and alternative lenders, including for self-employed buyers, bruised credit, and bridge or construction financing.
Talk to us about financingListing alerts
Be the first to hear about new court-ordered sales that match what you want.