Overview: The BCREA Contract of Purchase and Sale
The BCREA Contract of Purchase and Sale is the standard form used for residential real estate transactions in British Columbia. While realtors can use other forms or custom contracts, the BCREA CPS is the industry standard because it has been carefully developed to address BC-specific legal requirements and has been tested through thousands of transactions and court cases.
The CPS is a legally binding contract. Once signed by both parties and all conditions are removed, it is as binding as any commercial contract — default has serious legal and financial consequences.
Key CPS Sections: A Clause-by-Clause Guide
1. Property Identification
The property is identified by civic address and legal description (Lot/Block/Plan from the Land Title Office). The legal description must be accurate — errors in the legal description can create title issues at completion. Verify the legal description against the title search, not just the MLS listing.
For strata properties, the legal description includes the strata lot number, strata plan number, and type (SL - Strata Lot). For bare land stratas, the description is different from apartment/townhouse stratas.
2. Purchase Price
The purchase price section includes the total offer price, deposit amount, and balance due on completion. Key considerations:
- Deposit: Specified as a dollar amount, due within 24 hours of subject removal (or a specified date). The deposit is held in trust by the listing brokerage.
- Balance: The remainder of the purchase price, paid through the buyer's lawyer at completion via real property report.
- GST: The CPS includes a separate GST clause specifying whether the purchase price includes or excludes GST (critical for new construction; irrelevant for resale).
3. Deposit Structure
| Deposit Timing Option | Common Use | Risk Level |
|---|---|---|
| Upon offer presentation (with offer) | Strong competitive markets; shows commitment | Higher — deposit paid before acceptance |
| Within 24 hours of acceptance | Standard practice | Standard |
| Within 24 hours of subject removal | Preferred by buyers doing due diligence | Lower for buyer — no deposit until satisfied |
| On a specific date | Custom arrangements | Depends on date relative to acceptance |
Deposit timing strategy:In competitive multiple offer situations, offering a deposit with the offer (or within 24 hours of acceptance) is a strong signal of commitment. In due diligence periods, buyers prefer the deposit after subject removal — they don't want funds tied up during an inspection period. Discuss which structure serves your client's interests.
4. Subject Conditions (Clauses)
Subject clauses are conditions that must be satisfied (or waived) before the contract becomes firm. The most common subject clauses in BC:
| Subject Clause | Purpose | Who Benefits |
|---|---|---|
| Subject to financing | Buyer must obtain satisfactory mortgage financing | Buyer |
| Subject to inspection | Buyer must receive satisfactory home inspection report | Buyer |
| Subject to review of strata documents | Buyer must review Form B, minutes, financials, depreciation report | Buyer |
| Subject to title review | Buyer's lawyer must review clear title | Buyer |
| Subject to sale of buyer's property | Buyer must first sell their existing home | Buyer |
| Subject to seller obtaining replacement property | Seller must find a new home before completing | Seller |
| Subject to probate/court approval | Estate sale requiring judicial authorization | Seller — protects against inability to convey title |
5. Subject Removal Deadline
Every subject clause includes a specific deadline by which the buyer must either remove the subject (confirm the condition is satisfied and they are proceeding) or waive the subject (choose not to exercise the protection). If neither occurs by the deadline, the contract voids automatically.
Subject removal must be in writing — the buyer (or buyer's agent with written authorization) signs a Subject Removal Form confirming all conditions are satisfied. Verbal subject removal is not sufficient.
6. Included and Excluded Items
The CPS lists what is included in the purchase price (fixtures and improvements attached to the property) and what the seller is taking with them (exclusions). Common disputes arise over:
| Item | Generally Included | Often Disputed |
|---|---|---|
| Light fixtures | Yes — attached to ceiling/wall | Dining room chandelier the seller wants to keep |
| Window coverings | Yes — curtain rods and blinds | Custom drapery panels seller claims are furniture |
| Appliances | Only if listed in CPS | Whether stove, dishwasher, fridge are included |
| TV wall mounts | Yes — the mount; no — the TV | Buyer assumes TV included; it's excluded |
| Garage door openers | Yes — the system and remotes | How many remotes are included |
| Storage shed | Yes — if on permanent foundation | Portable shed seller considers personal property |
| Hot tub | Only if listed in CPS | Seller believes it's personal property; buyer assumes included |
Best practice:Be explicit about every item that could cause a dispute. If the seller wants to keep the chandelier, write "excluded: dining room chandelier" in the CPS. If the buyer wants the appliances, list each one: "included: Bosch dishwasher, Samsung fridge, LG gas stove." Ambiguity in the included items section is the most common source of post-closing disputes.
7. Completion Date
The completion date is the date legal title transfers. Practical considerations:
- Avoid Fridays and days before statutory holidays — if there is a title registration problem, no lawyers are working to fix it
- Allow minimum 3-4 weeks after subject removal for financing documentation and lawyer preparation
- Strata purchases may need extra time for strata estoppel certificate preparation
- Estate sales may need 2-3 weeks extra if probate is pending
- New construction completions may be flexible — confirm the builder's completion date requirements
8. Possession Date
Almost always the same as the completion date in BC residential transactions. When they differ:
- Seller needs extra time: Completion on Monday; possession Wednesday. Seller retains keys 2 days post-closing to coordinate move. This is a license agreement, not a tenancy — the seller is technically a licensee using the buyer's property.
- Buyer wants early occupancy: Requires a separate Occupancy Agreement (not part of the CPS). Buyer pays a daily occupancy fee and assumes liability. Mortgage lenders may object to early occupancy.
9. Adjustments
The adjustments clause specifies how ongoing property costs are divided between buyer and seller as of the completion date. Standard adjustments include:
- Property taxes: Prorated to completion date — seller pays their portion; buyer pays from completion
- Strata fees: Prorated; buyer gets credit for any prepaid portion
- Utilities: Assumed at possession date
- Rental income: If tenanted, rent prorated from completion; last month's deposit transferred to buyer
- Oil/fuel: In fuel oil heated homes, tank is measured at completion and buyer pays for the oil at current market price
10. Property Disclosure Statement (PDS) Reference
The CPS references whether a Property Disclosure Statement has been provided. The PDS is the seller's sworn disclosure of known material defects. Key points:
- Sellers are not required to complete a PDS — but declining to provide one is itself a disclosure (buyer may assume the worst)
- Estate sales routinely mark items "Unknown" — this is acceptable and protects the estate
- The PDS is part of the contract once referenced in the CPS
- False statements in the PDS create misrepresentation liability for the seller
11. Representations and Warranties
The seller represents and warrants several things, including that:
- They have the right to sell the property
- There are no undisclosed encumbrances, liens, or charges on title
- No orders or notices from authorities (municipality, health authority) affecting the property
- No tenancy agreements other than as disclosed
- The property complies with applicable bylaws and zoning at the time of the contract
12. Time Is of the Essence
As discussed in the FAQ, this clause makes every deadline in the CPS a firm legal deadline. Realtors must ensure clients understand that subject removal deadlines, deposit due dates, and completion dates are not negotiable without a written amendment.
Common CPS Mistakes and How to Avoid Them
| Mistake | Consequence | Prevention |
|---|---|---|
| Wrong legal description | Title registration failure; completion delay | Copy legal description from title search, not MLS |
| Ambiguous included items | Post-closing dispute; possible litigation | List every disputed item explicitly in the contract |
| Not specifying calendar vs. business days for subjects | Subject deadline confusion | Always state whether days are "calendar" or "business" days |
| Completion date on Friday or before holiday | No legal remedy if title registration fails | Schedule completion for Monday-Thursday |
| GST clause incorrect for new construction | Buyer underfunds completion | Verify builder's GST position and reflect correctly in CPS |
| Not addressing possession date when different from completion | Seller cannot access property after completion | Draft possession date clause if possession differs from completion |
| Subject removal by wrong party | Invalid subject removal | Only buyer can remove buyer-benefit subjects (or with written authorization) |
| Verbal subject removal | No legal effect | Always use written Subject Removal Form |
| Missing or incorrect strata lot number | Wrong unit registered | Verify strata lot number from LTO search |
| Not addressing tenancy when property is tenanted | Buyer and tenant's rights conflict | Address tenancy explicitly: will it continue or terminate? |
Counter-Offers and Amendments
When a seller does not accept an offer as written, they issue a counter-offer (or counter-counter-offer). Key mechanics:
- A counter-offer voids the original offer — the buyer can no longer accept the original terms
- A counter-offer must be accepted by the other party within the specified expiry time
- Multiple rounds of counters are common — each counter voids the previous offer
- Once both parties have signed the same terms, the contract is formed
After the contract is firm (subjects removed), any changes require a written Amendment to Contract of Purchase and Sale. Common amendments include:
- Change of completion or possession date
- Addition or removal of included items
- Extension of subject removal deadline
- Price adjustment (in rare agreed-upon situations post-acceptance)
Reviewing a CPS with Clients
Every realtor should have a structured process for walking clients through the CPS — both at offer writing and at offer review. Key points to cover:
For Buyers (Writing an Offer)
- Confirm the purchase price and deposit amount — is the deposit available by the specified date?
- Review every subject clause — is the subject period long enough to complete due diligence?
- Confirm the completion and possession dates — does the timeline work for the buyer's move?
- List every included item explicitly — what appliances, fixtures, and features are the buyer expecting?
- Confirm GST treatment — is this new construction? Is GST included or extra?
- Review the PDS if provided — any disclosed defects to address in subjects?
For Sellers (Reviewing an Offer)
- Is the price acceptable? What net proceeds after commission and adjustments?
- Are the subjects reasonable? Does the subject period length work for the seller's timeline?
- Is the deposit meaningful? A small deposit suggests lower buyer commitment.
- Do the completion and possession dates work for the seller's move plans?
- Are the included items correct? Is anything included that the seller wants to keep?
- Is there a subject to sale of buyer's property? (Higher risk for seller)
4 Client Advisory Scripts
Script 1: Buyer — Explaining the Contract Before Writing an Offer
"Before we write this offer, I want to walk you through the key points so there are no surprises. The purchase price we'll offer is $[X]. Your deposit will be $[Y] — we'll need those funds available within 24 hours of [subject removal/acceptance]. We're going to include three subjects: financing, home inspection, and title review — you have [7] business days to complete those. The completion date will be [date], and you'll get possession the same day. We'll include the appliances and the window coverings. Any questions before I put this together?"
Script 2: Seller — Reviewing an Offer
"Let me walk you through what they've offered. The purchase price is $[X] — that's $[Y] over/under your asking price. The deposit is $[Z], due [timing]. They have three subjects with a [N]-day removal period, which is [standard/shorter/longer than] typical for this market. Completion is [date] — is that timing workable for your move? I did notice they've included the hot tub in the included items — is that something you intended to include? Let me know your thoughts and we can discuss whether to accept, counter, or decline."
Script 3: Subject Removal — Explaining the Process
"Your subject removal deadline is [date]. By [date], you need to either sign the Subject Removal Form confirming you're satisfied with [financing/inspection/strata documents] and want to proceed — or let me know you're not satisfied and want to rescind. If we miss the deadline, the contract voids automatically and your deposit is returned. Once you sign the Subject Removal Form, the deal is firm — your deposit is at risk and you're contractually committed to close. So make sure you're confident on all three items before you sign. Where are you at on [financing/inspection/strata documents]?"
Script 4: Amendment — Changing the Completion Date
"I've spoken with the listing agent and the seller is willing to move the completion date from [original date] to [new date]. I'll prepare a written amendment for both parties to sign. A couple of things to note: your lawyer needs to know about this change immediately — they've been preparing for the original date. And your mortgage lender may need to adjust their commitment letter if their rate lock was tied to the original completion date. I'll send you the amendment within the hour — please review and sign as soon as possible so we can get it back to the seller before end of day."
Protecting Your Clients Through the CPS
The CPS protects both parties when it is properly completed. Realtors who understand every clause can:
- Anticipate disputes before they arise (ambiguous included items, unclear completion obligations)
- Structure subject clauses that give clients genuine protection — not just standard language
- Advise clients on the risks of subject-free offers with full information
- Catch errors (wrong legal description, incorrect GST clause) before completion
- Draft amendments that preserve both parties' interests when circumstances change
The CPS is not just a form to fill out — it is the legal foundation of your client's most significant financial transaction. Treat it accordingly.