Understanding Court Ordered Sales In Vancouver, BC
Sometimes properties are ordered for sale by BC Supreme Court. This means a property owner is unable (or unwilling) to repay a mortgage on a property, or a “Conduct of Sale” has been ordered due to other circumstance. The process is very specifically regulated by the Courts, and any ultimate agreement to sell the property must be approved by the Court.
How is an offer on a court ordered sale different?
The homeowners may have gotten divorced, defaulted on their mortgage payments or be unwilling to make their mortgage payments. If this happens, the bank hires a real estate broker to conduct a sale. The real estate broker handles this type of sale like any other listing they receive. They share the listing, arrange showings, and manage the sales transaction.
Once an offer is received on a court appointed listing and all conditions have been removed, (ie financing, appraisal, inspection etc.) a court date must be set. At this point the purchase price can and is disclosed to other potential purchasers. Anyone can show up to court and make an offer on the property, and the initial offer can be increased should the buyer decide to do so. The final decision on the sale of the property is decided by the appointed judge. In a court ordered sale, the bank must be able to prove to the court that the sale of the property is based on fair market value, and that the property has been adequately marketed by the real estate broker hired to sell it. The agreed-upon sale price of a court-ordered home is considered to be public information, this is to ensure a fair and transparent approval process.
Foreclosures and court ordered sales can present significant opportunity if you can find the right kind of property at the right price – but they are not without their challenges. If you are interested in these kinds of properties, or would like to know more about the “Court Ordered Process” please contact me and I can offer you professional guidance.