BC Foreclosure (Court-Order Sale)

BC defaults on residential mortgages normally go through a court foreclosure rather than the Ontario-style power of sale (the Land Title Act, s. 30, does refer to a power of sale in a registered charge). The lender starts by petition in the BC Supreme Court (Rule 21-7), and the court may fix a redemption period for the borrower to pay: usually 6 months in practice, sometimes shorter.

If the borrower can't cure the default, the court can order the property sold: it is listed on MLS, the sale is confirmed by the court, and competing buyers may attend the court hearing and bid against the accepted offer in real time.

"As is, where is, no representations" means exactly that." The lender has no knowledge of the property and usually provides no Property Disclosure Statement, because the lender never lived in the home. Subjects must usually be removed before the court hearing, and the deposit is forfeited if the buyer fails to close. Run a proper inspection BEFORE writing the offer (not after, because there are no subjects to inspect under), and budget 2-4× the typical contingency for unknown defects.

Lender title insurance becomes critical because the chain-of-title may include unregistered interests the prior owner never disclosed. Statutory basis: Law and Equity Act and the BC Supreme Court Civil Rules, Rule 21-7.