Court-Ordered Sales Are Rising in Metro Vancouver: The Types, and How the Process Works for Lenders and Buyers

By Christopher Chiu PREC* and Anky Kan PREC*, LiveLowerMainland, Oakwyn Realty Ltd.

If you have been searching listings lately, you have probably noticed more homes marked “court-ordered sale.” That isn’t your imagination. Here is what is driving the increase, the different kinds of court-ordered sales in BC, and how the process works for the lender on one side and the buyer on the other.

Why there are more court-ordered sales

CBC News reported 946 court-ordered property listings across Greater Vancouver and the Fraser Valley from January to September 2026, more than the full-year total for any of the previous ten years. BC’s Ministry of Attorney General has confirmed that foreclosures province-wide reached a 10-year high in the latest fiscal year, and the Vancouver Sun has reported foreclosure sessions in BC Supreme Court with more than 60 matters before a single judge.

The main pressure is mortgage renewals. Many owners who bought or refinanced when rates were near historic lows are now renewing at much higher payments. Equifax Canada reported that the share of BC mortgage balances 90 or more days past due rose 36% year over year, to 0.25%. That is still a small share of all mortgages, but it is a clear upward trend, and it is reaching every price range, not just entry-level condos.

The different types of court-ordered sales

“Court-ordered” simply means a judge has to approve the sale. Foreclosures are the most common, but they are not the only kind.

1. Foreclosure sales

A lender that is not being paid applies to the BC Supreme Court and is given “conduct of sale,” meaning the lender, not the owner, controls the listing and the sale. This is the type most buyers think of.

2. Partition sales between co-owners

When people who own a property together, such as siblings, business partners or former partners, cannot agree on whether to sell, one of them can apply under BC’s Partition of Property Act for an order that the property be sold.

3. Family law sales

In a separation, a court can order the family home sold under the Family Law Act when the spouses cannot agree on what to do with it.

4. Estate sales

Most estate sales do not need a judge. But when executors or beneficiaries are in a dispute, the court may order the property sold and supervise the sale.

5. Receivership and insolvency sales

When a business or individual is insolvent, the court can appoint a receiver to sell assets, including real estate, for the benefit of creditors. These sales are approved by the court before they close.

6. Strata lien sales

Under the Strata Property Act, a strata corporation that has registered a lien for unpaid strata fees can apply to the court for an order for the sale of the owner’s unit.

The process from the lender’s side

1. Default and demand. After missed payments, the lender sends a demand letter setting out what is owed.
2. Petition. The lender files a petition in BC Supreme Court. The owner has 21 days to file a response.
3. Order nisi. At the first hearing, the court confirms the amount owing and sets a redemption period, usually six months for a home. A judge can shorten it, for example when there is little equity left or the property has been abandoned.
4. Redemption period. The owner can still pay off the mortgage or sell the property themselves during this time.
5. Conduct of sale. If the debt is not paid, the court gives the lender conduct of sale. From then on, the owner can no longer sell the property themselves.
6. Listing and accepting an offer. The lender lists the property with a REALTOR® and accepts an offer subject to court approval.
7. Court approval. The lender’s lawyer applies to the court to approve the sale. The judge has to be satisfied that the price reasonably reflects market value.
8. Completion and payout. Once the sale is approved, it completes on the date set in the order. Proceeds pay property taxes, the mortgage, other registered charges and costs. Any surplus is paid into court, and the lender can pursue the borrower for any shortfall.

The process from the buyer’s side

1. Expect an “as is, where is” sale. The lender has usually never lived in the home, so you typically won’t get a Property Disclosure Statement, and the contract includes a schedule saying the property is sold without warranties about its condition.
2. Do your homework before you write. Arrange your inspection, financing and, for a condo or townhouse, a strata document review before you make your offer or remove subjects. You will not be able to negotiate repairs later.
3. Make your offer. If the lender accepts it, the acceptance is still subject to court approval. You can still be outbid at this stage.
4. Be ready for the court hearing. The lender’s lawyer sets a hearing date, often a few weeks out. Other buyers can bring higher offers to that hearing, and the judge will generally approve the best one. Your agent and lawyer should attend, and you should be prepared to raise your offer with your deposit and financing in place.
5. Close quickly. If the court approves your offer, the sale completes on the timeline in the court order, which is often short. If you are outbid, your deposit is returned.
6. No three-day cooling-off period. BC’s Home Buyer Rescission Period does not apply to properties sold under a court order, so be sure before you commit.

Is a court-ordered sale a good deal?

Sometimes. These homes are priced to sell, but the court protects the owner too, so the final price has to be close to market value, and competition at the hearing can push it higher. The real opportunity is for prepared buyers who understand the process, have their financing ready and know the true value of the property.

How we can help

Whether you are a buyer looking at a court-ordered listing or a homeowner feeling the pressure of a mortgage renewal, we can walk you through your options. Homeowners who act early, before conduct of sale, usually keep far more control over their sale and their equity. Contact Christopher Chiu PREC* or Anky Kan PREC* at LiveLowerMainland, Oakwyn Realty Ltd., for a confidential conversation.

This article is general information, not legal advice. If you are facing foreclosure or buying through the court, speak with a lawyer.