Residential real estate disputes in Burnaby: failed closings, deposits and property defects

The Contract of Purchase and Sale is the starting point

Review the signed contract, all addenda and every subject-removal document. Key terms include price, deposit, completion and possession dates, included items, adjustment provisions, representations, subjects and any special clauses. Verbal discussions may be relevant in some disputes, but do not assume they override the written agreement.

Failed closings can create significant claims

If a buyer fails to complete, the seller may face carrying costs, a later resale at a different price and other losses. If a seller refuses or cannot complete, the buyer may seek remedies depending on the circumstances. Deposits can become a major point of dispute, but entitlement is not determined by a simple rule that one side always keeps or receives the money.

When a completion problem appears, preserve communications with the real estate professionals, lender, lawyer or notary and the other side. Decisions about extensions, tender, resale or termination can affect later claims.

Defects and disclosure disputes require careful classification

BC Financial Services Authority consumer guidance states that sellers have a common-law duty to disclose latent defects in defined circumstances. A latent defect is one that cannot be discovered through a reasonable inspection; BCFSA separately provides guidance concerning material latent defects. The facts matter, including what the seller knew, what was disclosed, what an inspection could reasonably reveal and what the contract says.

See BCFSA’s current real-estate transaction FAQs and material latent defect guidance.

Strata properties add another layer

A condo or townhouse dispute may involve minutes, Form B information, depreciation reports, bylaws, special levies, insurance or building defects. Some disputes are between buyer and seller, while others are properly between an owner and the strata corporation. For the latter, review our B.C. strata disputes guide.

Limitation periods and evidence

Many civil claims in B.C. are subject to a basic two-year limitation period from discovery under the Limitation Act, with exceptions and special rules. Property disputes can also involve urgent contractual dates that arrive far earlier than a statutory limitation period.

Preserve the inspection report, Property Disclosure Statement or no-disclosure form, listing materials, photographs, repair estimates, contractor reports, strata documents and all pre-closing communications.

Related Burnaby property guides

For conveyancing and closing fundamentals, see real estate law in Burnaby. For strata-specific conflicts, use strata disputes and the CRT. Court strategy is covered in our civil disputes guide.

Keep inspection reports, photos, contractor assessments, repair estimates, the Property Disclosure Statement or other disclosure form, listing materials, strata records and all communications from before and after closing. Avoid destroying or materially altering evidence before documenting the condition.

What should a buyer preserve after discovering a serious defect?

There is no universal answer that applies to every failed transaction. The contract, reason for non-completion, any breach and the surrounding facts can affect entitlement. Do not release or claim a disputed deposit without understanding the legal position.

Who gets the deposit if a real estate deal collapses?

Not every condition creates the same disclosure duty. BCFSA explains that sellers have a common-law duty concerning latent defects in defined circumstances, and material latent defects have specific significance. What the seller knew and what a reasonable inspection could reveal can matter.

Does a seller have to disclose every defect?

Questions people often ask

Real-estate dispute deep-dive guides