Properties acquired as part of the court-ordered sale process are perhaps the best examples of « buyer caution » in our real estate market. However, as with all investments, there is a relationship between risk and return. For a savvy buyer, the reward of getting a good deal on a top-notch property can often far outweigh the risk. As with most other real estate listings, the terms of a purchase and sale agreement, including the final sale price, are usually negotiated between the seller (lender) and a buyer. However, the lender is still required to prove to the court that each sale is based on market value and that the property has been marketed appropriately and broadly. If a buyer likes performance enough to make an offer, they can make a standard offer, with the addition of certain required clauses, in particular the clause « Sold as is, where it is » and a clause « Subject to court approval ». The initial offer can be negotiated by the mortgage lender, who forces the sale. Once the first offer is accepted, the buyer can proceed with his normal duty of care, although the information provided is limited. As this is a court-ordered sale, there is no guarantee that the buyer will be able to perform an inspection or provide additional information from the seller. The buyer can still check with the city for permits and property information and should have access to Strata documents, but that`s about the amount of due diligence you can do. The buyer must ensure that he has sufficient information to obtain mortgage financing from an understanding lender. Once the buyer has lifted their terms (apart from the need for court approval), the legal process is initiated and a hearing date is set, usually a few weeks in advance.
The purpose of any foreclosure sale is to cover the owner`s debt, with the money going to the lender. As a result, the home is unlikely to be sold at a price well below fair market value. In fact, it is quite common for these homes to be sold at a fair price. This introduction to foreclosure properties in British Columbia gives you an overview of the process of buying a property through a court-ordered sale, including some of the risks involved. We are aware that this is not a « manual » for court-ordered sales; Rather, it is an overview of the different components of the process. Court-ordered sales (often referred to as seizures) are a very different way of buying and selling than a normal transaction. Court-ordered sales are inherently much riskier and take longer than a typical sale, so they are not for the faint of heart. Many people believe that court-ordered sales are « offers » that are worth the headache, but they are far from a guaranteed deal, so this is not a scenario I encourage for most buyers. I like to tell buyers: if they buy a single-family home in a court-ordered sale, they must assume that they are buying a demolition, and if a habitable house is still there on the date of ownership, then they can consider themselves lucky. As soon as the seller and buyer accept the terms of a buyer`s contract for a foreclosure property, the sale process is far from over. Words like court-ordered sales and seizures conjure up images of homes at reasonable prices and incredible offers, but there are one or two myths surrounding these homes that need to be dispelled. Look for Nanaimo seizures and court-ordered sales below.
An interesting (and sometimes exciting) aspect of the Tribunal`s approval process in British Columbia is that all information provided to the Court of Justice as part of the Court of Justice application process is publicly available. The agreed selling price will be published to ensure a fair and transparent approval process. Other people who have shown interest in the property usually have the opportunity to attend the hearing and observe the process and even make competing offers. This means that, unlike the traditional process of buying a property, the potential buyer with the accepted offer for the property is not necessarily the party to leave as the new owner. The catch, however, is that any new offer submitted to the court at the hearing also does not need to be conditional and must be accompanied by a non-refundable bank check (subject to court approval) or a certified check. .