Skip to main content
Skip to article

BC buyer due-diligence checklist

Due diligence is the work between an accepted offer and a firm deal, and it ends when you remove your subjects. The twelve checks below come up in roughly this order. The contract sets the dates, so confirm them first.

The twelve checks

Twelve checks, in the order they come up, with who does each and what it costs. The detail for each sits under the table.

The twelve due-diligence checks: when, who and cost
CheckWhenWhoCost
1. Strata documentsAsk firstThe strataForm B up to $35
2. Home inspectionBefore subjects come offAn inspectorInspector’s quote
3. Title searchBefore subjects come offYour lawyer or notaryIn the legal fee
4. Disclosure statementWith the listingThe sellerNone set
5. Latent defectsBefore the offerThe listing agentNone set
6. Title insuranceBefore subjects come offYour lawyer or notary$200 to $1K, once
7. Mortgage approvalAfter the appraisalYour lenderPremium if under 20% down
8. Transfer taxBefore completionYour lawyer collectsFrom the calculator
9. Foreign buyer rulesBefore the offerYou and your lawyerNone to check
10. Real Property ReportBefore subjects come offSeller or surveyorSurveyor’s quote
11. Permit historyBefore subjects come offThe municipalitySet by the municipality
12. Insurance quoteBefore subjects come offAn insurerQuoted per address
What each check involves(12)
  1. Order the strata documents. For a strata home, ask for the Form B Information Certificate, bylaws, rules, financial statements, meeting minutes, engineering reports, the insurance summary and the depreciation report. The strata may charge up to $35 for the Form B and must give it within one week of your request (Strata Property Act, s. 59). A strata of five or more lots must renew its depreciation report every five years. In Metro Vancouver, the Fraser Valley and the Capital Regional District the first deadline was July 1, 2026, and elsewhere it is July 1, 2027. The old owner vote to skip the report no longer exists. Related: strata insurance.
  2. Book a home inspection. Hire an inspector before your subject date. The report covers what the inspector can see, so ask about the roof, wiring, plumbing, drainage and the crawl space or attic. Older homes can need a specialist for oil tanks or other items the inspector flags. Get the price from the inspector, since it depends on the home. Related: new home warranty.
  3. Read the title search. Your lawyer or notary searches title at the land title office. Read every easement, covenant, right of way, lien and mortgage that stays on title. A covenant can bar a use you planned, such as a suite. Related: builders liens.
  4. Read the Property Disclosure Statement. The seller’s statement is standard practice on a BC listing, but no law requires it. It covers what the seller knows. A visible defect is the buyer’s risk. Read every “yes”, especially water damage, unpermitted work and oil tanks.
  5. Ask the listing side about material latent defects. The listing agent, not the seller, must tell every buyer about a material latent defect the agent knows of. That is a defect a reasonable inspection would not find. It is required whether or not there is a disclosure statement, and a contract cannot waive it.
  6. Get a title insurance quote. Ask your lawyer or notary for a quote. The law does not require title insurance, and a lender may ask for it. The premium is typically $200 to $1K, one time, as its own line on the Statement of Adjustments.
  7. Get final mortgage approval. A federally regulated lender qualifies you at your rate plus 2 percentage points or 5.25%, whichever is higher. A pre-approval is an estimate. Wait for the lender’s written commitment after its appraisal before you remove the financing subject. With under 20% down, a federally regulated lender requires the mortgage to be insured, and the purchase price must be below $1,500,000.
  8. Estimate the Property Transfer Tax. It is cash on completion day, and it rises faster above $2,000,000. A first-time buyer or a newly built home may qualify for an exemption, but not both on one purchase. Work out your figure with the Property Transfer Tax calculator. See the Property Transfer Tax calculator.
  9. Check foreign buyer rules. If anyone on title is not a Canadian citizen or permanent resident, check the federal ban before you write the offer. It covers census metropolitan areas and agglomerations, including Metro Vancouver and Abbotsford-Mission, and is set to end January 1, 2027. The federal budget of November 5, 2026 proposes extending it to January 1, 2029 for existing homes, with new homes exempt; that is not law yet. The penalty is a fine of up to $10,000 and a court order to sell. Provincial foreign buyer tax is separate. See the Foreign buyer ban guide.
  10. Ask for the Real Property Report. A Real Property Report is a surveyor’s drawing of the buildings against the boundaries, easements and setbacks. Ask whether the seller has a current one. A deck, shed or garage near a boundary is where the drawing matters. See the Real Property Report guide.
  11. Search the permit history. On a home with additions or a finished basement, ask the municipality for its permit history. A lack of appropriate building permits is one of the examples of a material latent defect in the Real Estate Services Rules.
  12. Get an insurance quote, then plan the walk-through. Ask an insurer for a quote on the address before you remove subjects. Wiring, plumbing and oil tanks can change what an insurer will cover. Whether your contract gives you a final walk-through is set by its wording, so ask your agent before you remove subjects.

The rescission period sits under your subjects

For 3 business days after acceptance you can cancel for any reason, at a cost of 0.25% of the price. That is $3,750 on $1,500,000 and $8,750 on $3,500,000. Treat it as a floor and not a plan. Your subjects run separately, and the closing timeline shows how the two fit together.

A subject-free offer keeps only that right. The subject-free offers guide covers what you give up.

Questions buyers ask

  • How long should the subject-removal period be in BC?
    There is no legal length. The contract sets the date, and the seller has to agree to it. Allow enough time for the full set: strata documents, financing approval, the inspection and an insurance quote. A strata home or an older house with specialty inspections needs more time than a new build. A short period raises the risk that a document arrives after you have waived the subject. Source: your contract of purchase and sale.
  • What is a “subject” condition?
    A subject is a condition that must be met, or waived, by a set date before the contract is firm. Common ones are financing, a home inspection, strata documents and insurance. If a subject cannot be met, the buyer can end the contract and the deposit comes back, as the contract provides. Source: your contract of purchase and sale.
  • Do I need a lawyer or can I use a notary?
    Lawyers and notaries both handle residential conveyancing in BC. A routine purchase typically costs $1,500 to $2,000, either way, plus disbursements. A corporate buyer, a foreign buyer, land in the Agricultural Land Reserve or anything that could go to court is a reason to ask a lawyer first. Source: Fact Bank, BC legal and notary fees (bronsonjob.com/codex).
  • What is the Home Buyer Rescission Period?
    It lets a buyer cancel a purchase for any reason within 3 business days after the offer is accepted. The buyer pays the seller a fee of 0.25% of the price, which is $3,750 on $1,500,000 and $8,750 on $3,500,000. A contract cannot waive it, so it applies to a subject-free offer too. It does not replace subjects, which run separately. It does not cover auctions, court-ordered sales, leased land, leasehold interests, or presales, which have their own seven-day right. Source: Property Law Act, s. 42, and the Home Buyer Rescission Period Regulation, B.C. Reg. 175/2022 (bclaws.gov.bc.ca).
  • How do I know if a strata corporation is healthy?
    Read the depreciation report first. It sets out what the building needs and what the owners must fund. Then read the contingency reserve fund figures in the financial statements, two years of meeting minutes, and the Form B. Look in the minutes for special levies, rebuilds, water damage and legal proceedings. Make sure the Form B matches what the listing says about fees and levies. Source: Strata Property Act, ss. 59 and 94, and Strata Property Regulation, s. 6.21 (bclaws.gov.bc.ca).
  • What happens if a material latent defect shows up after closing?
    The listing agent had to disclose any such defect the agent knew of before the contract. If the agent knew and did not tell you, you may have a claim. If the seller knew and said nothing, you may have a claim against the seller. Get legal advice quickly, and you may complain to BCFSA. A visible defect is the buyer’s risk. Source: Real Estate Services Rules, B.C. Reg. 209/2021, s. 59 (bclaws.gov.bc.ca).
Sources(23)

Also drawn from: BC Laws, BC Financial Services Authority, Office of the Superintendent of Financial Institutions, Canada Mortgage and Housing Corporation.

Spot an issue? Report an inaccuracy. How we verify.

Last reviewed by Bronson Job PREC, REALTOR®. Licence CC BY 4.0. How we verify.

I’m Bronson Job, a REALTOR® (PREC) with Momentum Realty Inc., so I earn a commission when I help someone buy or sell. This is general information, not advice on your situation, and I take no payment from any third party named here. How I verify.