Backup Offers in B.C. Real Estate: What You Need to Know 

In British Columbia’s competitive housing market, buyers sometimes miss out on being the first accepted offer. However, that doesn’t always mean the door is closed—this is where backup offers come into play. A backup offer can position you as the next in line if the primary deal falls through. While this can be a powerful strategy, it comes with its own set of advantages, risks, and legal implications—especially if your backup offer competes with the first one.

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What Is a Backup Offer?

A backup offer is a legally binding contract signed between a buyer and seller that only takes effect if the first accepted offer collapses. It essentially “reserves” your spot as the next buyer without cancelling the primary buyer’s contract.In B.C., once a seller accepts an offer, that contract is the primary agreement until:

• The buyer removes subjects (conditions), making it firm, or
• The deal collapses due to unmet conditions or default.

If the first offer fails, the backup offer automatically moves into first position—often without further negotiation.

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When Backup Offers Are Used

• High-demand homes with multiple interested buyers.
• Competitive markets where buyers are willing to secure a spot “just in case.”
• Conditional first offers where there’s a chance the first buyer can’t get financing or satisfy inspection results.

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Pros of a Backup Offer

For Buyers

1. Priority Position – If the first deal collapses, you avoid competing with new buyers or entering another bidding war.
2. Negotiated Price – You lock in the purchase price before the home returns to the market (prices could rise if demand is high).
3. Less Rushed Decision – You have more time to consider inspections, financing, and due diligence while you wait.

For Sellers

1. Security Net – Reduces the risk of starting over if the first buyer backs out.
2. Time Savings – Avoids re-listing, additional showings, and marketing delays.
3. Stronger Negotiating Power – Buyers may offer better terms to be in backup position.

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Cons & Risks of a Backup Offer

For Buyers

1. Locked In Legally – You are committed to buying if the first deal fails, even if you’ve found another home in the meantime.
2. Uncertainty – You might tie up your finances and time only to have the first deal go through.
3. Less Negotiation Power Later – Once you’re in backup position, the seller has no reason to lower the price if circumstances change.

For Sellers

1. Buyer Withdrawal Risk – If too much time passes, the backup buyer may lose interest.
2. Market Changes – If prices go up significantly, you’re still bound to the backup offer price.
3. Perception Issues – Some buyers may feel discouraged knowing they’re “second choice.”

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When a Backup Offer Competes With the First Offer

This can happen in two scenarios:

1. During the Subject Removal Period – The seller may negotiate a better offer with the backup buyer before the first buyer removes conditions. However, the seller cannot unilaterally cancel the first deal—they can only accept the backup as a conditional agreement.
2. If the First Buyer Defaults – The backup offer springs into effect. But if the backup price and terms are much better, the seller might subtly prefer the first deal to fail (though deliberately sabotaging the first deal can have legal consequences).

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Risks in Competitive Backup Situations

• Subject Removal Pressure – The first buyer may rush to remove conditions to block the backup buyer. This can lead to them accepting less favourable inspection results or financing terms.
• Multiple Backups – Sometimes more than one backup offer exists, creating a queue. This can cause frustration for lower-priority buyers.
• Deposit Timing – In B.C., the deposit is often due after subject removal. Backup buyers must be ready to provide their deposit quickly when their offer moves into first place.

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Best Practices for Backup Offers in B.C.

• Get Legal Advice – Make sure your Realtor® and lawyer explain the contract implications before signing.
• Use a Subject to Release Clause – This specifies your offer is only binding if the seller provides written notice that the first deal has collapsed.
• Set an Expiry Date – Avoid being tied up indefinitely by putting a clear time limit on your backup offer.
• Stay Financially Flexible – Keep your financing pre-approved and avoid commitments that might interfere with your ability to close quickly.

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Final Word

Backup offers in B.C. can be a smart strategic move for both buyers and sellers—but they aren’t without risks. Buyers should prepare for uncertainty and legal commitment, while sellers should weigh the security of a backup offer against the possibility of better deals emerging later.Handled correctly, a backup offer can be a safety net in the unpredictable world of real estate—just make sure you understand exactly what you’re committing to before signing on the dotted line.