Are you buying or selling a residential property? The conveyancing process involves several important dates and deadlines that play a key role in the success of the transaction. Missing any of them can result in delays, penalties, or even the deal falling through.
This article explains the key dates in a typical residential real estate transaction in British Columbia and what each one means.
1. Contract Date
The contract date is the date the buyer prepares and signs the offer before presenting it to the seller. This date appears on the Contract of Purchase and Sale and serves mainly as a reference point.
For example, if there is an addendum or amendment to the agreement, it will refer to the contract date to identify which version of the agreement is being modified.
The contract date is not the date the buyer and seller reach an agreement. That is the offer acceptance date.
2. Offer Open for Acceptance Date and Time
When a buyer submits an offer, it will include a deadline, typically both a date and time, by which the seller must respond. This is known as the offer open for acceptance period.
If the seller does not accept the offer within this timeframe, the offer expires and is no longer valid.
3. Offer Acceptance Date
This is the date the seller formally accepts the buyer’s offer. Once accepted, the agreement becomes legally binding, subject to any conditions included in the contract.
The acceptance must take place on or before the offer open for acceptance deadline. This date also triggers the countdown for other important deadlines, such as subject removal and the rescission period.
4. Subject Removal Date
Many offers include conditions, often referred to as subjects, that must be met before the sale becomes firm. Common subjects include financing approval, a satisfactory home inspection, or review of property documents.
The subject removal date is the deadline by which the buyer must confirm that these conditions have been satisfied and officially remove them in writing. If the subjects are not removed by this date, the contract is typically considered void and the buyer’s deposit is usually returned.
It is important to work with your real estate agent, mortgage professional, and notary public to ensure all conditions are addressed well before this deadline.
5. Rescission Period (Cooling-Off Period)
As of January 2023, the Home Buyer Rescission Period Regulation gives most buyers of residential real estate in British Columbia the right to cancel their accepted offer within three business days, for any reason.
If the buyer chooses to cancel within this period, they must pay the seller a rescission fee equal to 0.25% of the purchase price. For example, on a $1,000,000 home, the fee would be $2,500.
Certain property types, such as leasehold properties and some pre-sale developments, may be exempt from this regulation.
6. Completion Date
The completion date is when the legal transfer of ownership takes place. On this day, your notary registers the title transfer with the Land Title Office and your lender, if applicable, releases the mortgage funds.
You become the legal owner of the property on the completion date and assume all associated rights and responsibilities.
Make sure to arrange for your home insurance policy to begin on the completion date.
7. Adjustment Date
The adjustment date is when the buyer becomes responsible for property-related expenses, such as property taxes, strata fees, and other ongoing costs. Any amounts already paid by the seller beyond this date will be adjusted between the parties.
For most resale transactions, the adjustment date is one day after the completion date. For pre-sale properties, the adjustment date is typically the same as the completion date.
8. Possession Date and Time
The possession date is when the buyer takes physical possession of the property. This includes receiving the keys and being allowed to move in. The exact time of possession is specified in the Contract of Purchase and Sale.
Possession arrangements are typically handled by your real estate agent, who will coordinate the key handover and any final walkthroughs.
Although you become the legal owner on the completion date, you cannot access the property until the possession date and time stated in your contract.
Final Thoughts
Every date in a real estate transaction matters. Understanding each one helps you stay informed and prepared throughout the process.
As a notary public in British Columbia, we help buyers and sellers navigate these important steps with confidence and clarity. Whether you’re purchasing your first home or adding to your investment portfolio, we work to ensure your transaction is completed smoothly and on time.