Recognizing the Early Warning Signs

Expropriation is often contemplated long before formal acquisition proceedings begin. Early indicators may include corridor studies, survey crews on or near your property, requests for access, notices seeking information, or communications from appraisers, negotiators, or consultants. Property owners should be cautious about signing informal agreements or granting access without understanding the implications.

Understanding the Process

Although every project differs, expropriation proceedings commonly involve notices and information requests, negotiations supported by appraisals, possession by the expropriating authority, and ultimately determination of compensation.

Understanding Compensation

Compensation may extend beyond the value of land actually acquired. Depending on the circumstances, property owners may be entitled to compensation for the market value of land taken, injurious affection affecting the remaining property, disturbance damages associated with relocation and related expenses, and business losses where applicable.

Taking Early Steps to Protect Your Position

Expropriation processes can progress quickly once initiated. If your property may be affected by a potential taking, obtaining legal advice early can help you understand your rights, evaluate compensation entitlements, and make informed decisions throughout the process.

Article by Tanya Motani and Doug Conolly.

If you have questions about expropriation or how a proposed project may affect your property, please contact Amy Salak at 604.580.7066 to schedule a free, no-obligation meeting with Doug Conolly to discuss your options.

The post How Expropriation Can Affect Private Property in British Columbia appeared first on McQuarrie Legal Services.

When a Temporary Use Permit May Be Required

Where a property owner cannot establish that their proposed use is already permitted under the applicable zoning bylaw, a temporary use permit provides a mechanism to lawfully operate on the property in the interim. It is important to understand, however, that municipalities have significant discretion on whether or not to grant a temporary use permit. Moreover, a municipality may impose conditions on the manner in which the property is used under the temporary use permit.

Undertakings and Restoration Obligations

As a condition of issuing a temporary use permit, the municipality may require the applicant to provide formal undertakings. These undertakings typically obligate the property owner to restore the property to the condition it was in at the time the permit was issued. If an applicant fails to comply with these undertakings, the municipality has the authority to enter the property and carry out the necessary restoration work — at the applicant’s expense.

Security Requirements

The municipality may also require the applicant to provide security as a guarantee of performance. Acceptable forms of security generally include an irrevocable letter of credit or another form satisfactory to the municipality. This security can be drawn upon by the municipality in any of the following circumstances:

• A landscaping condition in the temporary use permit has not been satisfied;
• An unsafe condition has arisen as a result of a contravention of a permit condition; or
• Damage to the natural environment has resulted from a contravention of a permit condition.

In any of these situations, the municipality may undertake the required works, construction, or other remedial activities at the applicant’s expense and apply the security toward those costs.

Public Hearing Process

Applicants should be aware that in specific circumstances the issuance of a temporary use permit may require a public hearing during which members of the public — including neighboring property owners — may make representations for or against the application. Where neighboring landowners are strongly opposed to the proposed use, this process can present a meaningful obstacle to approval and is a factor applicants should carefully consider before proceeding.

Registration on Title

Finally, if a temporary use permit is granted, it will be registered against the title of the subject property. Applicants should factor this into any financing, sale, or other title-sensitive considerations relating to the property.

This article is intended for general informational purposes only and reflects general principles applicable to temporary use permit applications. The specific requirements and procedures may vary depending on the applicable municipal bylaw and the circumstances of each application.

Prepared by: Sunny Uppal

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Understanding the Foreclosure Process in British Columbia

As economic pressures mount across BC’s real estate landscape, foreclosure filings are becoming increasingly common. Interest rates have risen (with only a modest softening to date), credit conditions are tightening, and prolonged development timelines have created a perfect storm for a troubled market. Whether you’re a buyer seeking opportunity, a seller under stress, a lender weighing enforcement, or a developer navigating uncertainty, understanding the foreclosure process is essential.

In BC, foreclosure is a court-supervised process. It begins when a borrower defaults on a mortgage, resulting in the lender sending a demand letter. The lender then commences the foreclosure process by filing a Petition in the Supreme Court of BC. Together with the Petition, the lender will file an affidavit attaching the mortgage documents, the demand sent, and calculating the amount due and owing. Both the Petition and the supporting affidavit must be served on the debtor and all persons whose interest in the mortgaged property is sought to be extinguished. In order to be notified of the next step, any party to the proceedings (including the borrower and any other interested parties), must file a Response to Petition setting out their position on the matter.

The next step in the process will be for the lender (now called the Petitioner) to set the matter down for hearing before the court for a declaration of the amount due and the time that the borrower will have to pay that amount due, known as the redemption period, which is typically 6-months unless there are special circumstances to reduce that time frame, such as lack of equity or wasting of the property. This order for a declaration of the amount due and setting the redemption period is known as an Order Nisi, and is typically a very short, and often uncontested application. If the debtor does not repay the amount due within the redemption period, the Petitioner may seek an Order for Sale granting the Petitioner the right to engage a realtor and market the property for sale. Once an offer is received that the Petitioner wishes to accept, a final application is brought for an Order Approving Sale. A debtor may seek to redeem the mortgage by paying it out in full at any time prior to an Order Approving Sale, despite the expiry of the redemption period. When considering an Order Approving Sale, the court will examine whether the lender has acted in a businesslike manner in marketing the subject property and whether the proposed sale is provident in all of the circumstances.

Current Trends in the Land Market

Foreclosures are no longer isolated events; they are part of a broader trend of financial distress in the land market.

Many landowners are overleveraged on raw sites purchased during the 2021–2022 peak, and refinancing has become increasingly difficult as loan-to-value ratios tighten. According to the Bank of Canada, “about 60% of mortgage holders renewing in 2025 and 2026 are expected to see a payment increase.”

Lenders are moving more swiftly to enforce their rights, while developers continue to face delays in municipal approvals despite calls for change and rising servicing costs.

This mismatch between debt obligations and development timelines is driving a surge in foreclosure and insolvency proceedings, as land has previously been seen as the most valuable asset in BC.

For Buyers: Navigating Opportunity and Risk

Distressed assets can present compelling opportunities, including court-ordered sales, foreclosure auctions, and receiver-managed disposals, which often come at below-market pricing and/or prices that are lower than is required to clear title if the property is over-leveraged.

However, due diligence is critical. Buyers must carefully review municipal files, servicing obligations, and any liens or encumbrances. Note that “cheap land” may come with hidden costs or development barriers.

Financing can also be a hurdle. Traditional lenders may hesitate to fund distressed acquisitions, requiring buyers to rely on cash or private capital. That said, buyers who offer speed and certainty, such as firm offers with short closing timelines, may gain leverage in negotiations with lenders or receivers eager to resolve quickly.

For Sellers: Preserving Value Under Pressure

Owners facing financial stress should engage with lenders early. Open dialogue can sometimes lead to extensions, restructures, or staged sales, which are options that may preserve equity and control.

Joint ventures with capitalized developers can also be a lifeline, allowing projects to move forward rather than being liquidated. Pre-selling portions of land to pay down debt is another strategy that can help avoid foreclosure or insolvency.

Waiting too long, however, risks court intervention through foreclosure or receivership proceedings, where pricing and timing are outside the owner’s control.

For Lenders: Strategic Enforcement

Lenders must balance enforcement with asset preservation. A forced sale in a thin market may crystallize losses, while a structured negotiation or joint venture may yield better long-term outcomes.

Appointing a receiver ensures professional management of the sale process, but it also adds cost and may alienate the borrower. Moreover, foreclosure listings can depress comparable sales in the area, affecting broader portfolio valuations.

For Developers: Adapting to a Shifting Landscape

Developers active in today’s market often target shovel-ready or near-serviced distressed sites where lenders are motivated to sell but fundamentals remain strong. Conservative financial modeling, including realistic absorption rates and cost contingencies, is essential to withstand prolonged cycles.

Partnerships with equity investors or lenders can provide a buffer against insolvency. As more distressed land enters the market, pricing benchmarks may shift downward, creating both acquisition opportunities and valuation risks for existing holdings.

Key Takeaway

Distress in the BC land market is rising, and all parties, including buyers, sellers, lenders, and developers, must adapt. The winners will be those who act early, document clearly, and structure deals creatively to manage the changing landscape.

Written by: Dan Moseley, Partner & Sharon K. Malhi, Articled Student

Originally Published: Varing Magazine

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Received an Expropriation Notice? You May Have More Options Than You Think

Receiving an Expropriation Notice can raise immediate questions about what it means for your property and what steps you can take. One right that may be available to you is the right to request an inquiry.

Not every taking qualifies for an inquiry. Your options for requesting an inquiry depend on whether the proposed expropriation is non-linear, a distinction that can significantly affect whether an officer is assigned and how the process unfolds. Once an officer is assigned, the expropriating authority has the opportunity to request the officer to refuse the inquiry. Once both parties have had the opportunity to be heard, the officer determines whether the inquiry will proceed, considering a range of factors that can vary in each case.

If an inquiry is held, it offers an opportunity to review how the proposed expropriation will be carried out and to suggest potential alternatives.

Timing is critical in these circumstances as pursuant to s. 10 of the Expropriation Act, RSBC 1996, c. 125, a request for an inquiry must be submitted within 30 days of receiving the Expropriation Notice. Missing this deadline could mean losing the opportunity entirely.

Determining whether your expropriation qualifies as non-linear, and whether an inquiry could be strategically useful, is not always straightforward. What applies in one case may not apply in another, and the distinctions can have significant implications for your rights. Landowners who receive an Expropriation Notice should consult a lawyer with experience in this field to understand their rights and options.

Call Amy Salak at 604.580.7066 to schedule a free, no-obligation meeting with Doug Conolly to discuss your options.

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Two of McQuarrie’s Lawyers Recognized in the Lexpert Canadian Legal Directory

In the milestone 30th anniversary edition of the Canadian Legal Lexpert Directory, Dan Moseley and Greg van Popta have been recognized as two of Canada’s Leading Legal Practitioners in the 2026 Canadian Legal Lexpert Directory. This honour reflects a prestigious, long-standing peer-review process that identifies the country’s top legal professionals.

For three decades, the Canadian Legal Lexpert Directory has conducted an annual survey to spotlight outstanding lawyers and firms across Canada. In this 30th edition, rankings continue to be based on recommendations from law firm leaders and industry peers, recognizing those who exemplify excellence, leadership, and influence in their respective practice areas.

This well-deserved acknowledgement reflects Dan’s and Greg’s dedication, expertise, and exceptional service they provide to our clients every day.

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Understanding the Content of the Right to Vote Under the Canadian Charter

Section 3 of the Canadian Charter of Rights and Freedoms guarantees every Canadian citizen the right to vote in elections for members of the House of Commons and provincial legislative assemblies. However, the “right to vote” encompasses much more than simply casting a ballot. This post explores the broader content and purpose of this fundamental right.

The Supreme Court of Canada has interpreted Section 3 as ensuring that voters are effectively represented in government and able to play a “meaningful role” in the electoral process. Meaningful participation requires more than the mechanical act of voting; it demands that citizens have the opportunity to vote in an informed manner. This means being “reasonably informed of all possible choices,” which in turn requires access to a diversity of viewpoints and information from candidates, political parties, and third parties.

The right to vote under Section 3 also protects a citizen’s ability to cast a ballot “in a manner that accurately reflects his or her preference.” To do so, voters must have access to sufficient information to assess the relative strengths and weaknesses of each party’s platform. The democratic process is only meaningful if there is equilibrium in political discourse, allowing voters to develop informed opinions. When public debate is dominated by a single actor or party, this balance is threatened, potentially infringing on the right to meaningful participation.

For voters to meaningfully participate in the electoral process, they must be able to hear and weigh many points of view. A healthy democracy depends on robust public debate and the free flow of information, ensuring that citizens can make informed choices at the ballot box.

If you believe that a governmental body has infringed upon your Charter rights, please contact Sunny Uppal at suppal@mcquarrie.com.

Prepared by Sunny Uppal

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We’re proud to share that Jacy J. Wingson, KC will be serving as Vice-Chair on the Board of Directors at the Surrey Hospitals Foundation for 2025/2026, where she has been a dedicated board member since 1998.

Reflecting on her long-standing involvement, Jacy shares: “The Foundation plays a vital role in ensuring that the equipment and programs available for residents are quite simply state of the art. It is the difference between providing something acceptable and something exceptional, so that Surrey is a leader in the region in providing care to residents south of the Fraser River. The parallel growth between this region and the Foundation over the years is truly inspirational.”

The Surrey Hospitals Foundation supports one of B.C.’s busiest health regions, funding innovative equipment, technology, and programs that strengthen patient care and community health.

McQuarrie is proud to be a steadfast supporter of the Surrey Hospitals Foundation for the last two decades.

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If you’d like to learn more about our involvement with the Surrey Hospitals Foundation or other community initiatives, get in touch with us today.

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McQuarrie has been recognized in the 2026 edition of Best Law Firms™ – Canada, ranked regionally in 3 practice areas, a testament to our commitment to legal excellence.

Firms included in the 2026 Best Law Firms™ – Canada list are recognized for professional excellence signifying high-quality legal practice and a depth of legal proficiency. Recognized firms, categorized into three tiers, receive acclaim on both national and metropolitan levels, reflecting the extent of their practice and geographic reach. Receiving a tier designation reflects the integrity and reputation earned by law firms.

McQuarrie received the following rankings in the 2026 Best Law Firms™ – Canada:

• Corporate and Commercial Litigation
• Insurance Law
• Real Estate Law

About McQuarrie

McQuarrie is an established Surrey-based, multi-practice law firm optimally equipped to serve businesses, individuals, and institutions in the Lower Mainland and across British Columbia. Since 1967, we’ve consistently grown and adapted to serve the ever-evolving legal needs of British Columbians and continue to deliver innovative, result-oriented legal solutions to our clients.

About Best Law Firms®

Best Law Firms®, ranked by Best Lawyers® and respected for over 14 years, is the most credible ranking of exceptional law firms globally. It is rooted in a rigorous, peer-to-peer, industry-driven evaluation. A ranking from Best Law Firms signifies a high-quality practice and a breadth of legal expertise. Ranked firms, presented in three tiers, are recognized on a national and metropolitan scale, providing legal professionals with an elevated stature from the Best Law Firms recognition. For more information, visit www.bestlawfirms.com.

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For any of your legal needs, please don’t hesitate to reach out to us at 604.581.7001 or by using the contact form below.

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Our BC municipalities are constantly changing and growing and from time to time, municipal and federal governments undertake projects designed to enhance public infrastructure, safety, and services. These projects may require the acquisition of privately owned land, either in whole or in part.

What You Need to Know

• Project Purposes: Land may be acquired for various purposes such as new roads, public utilities, parks, schools, or government buildings.
• Notification: If your property is identified as being affected by a municipal or federal project, you may first receive informal notice detailing the scope of the project and the potential that your property may be involved and may need to be acquired.
• Your Rights: You have the right to receive fair compensation for your property. You may also have the opportunity to discuss terms and, in some cases, raise concerns or objections by way of negotiations before the formal expropriation process commences.

If You Receive Notice of a Public Project that May Affect Your Property:

1. Contact McQuarrie for a free initial consultation.
2. Read all correspondence carefully and note any deadlines.
3. Participate in any scheduled public meetings or hearings to ensure your voice is heard.

Your property and your concerns matter. Our goal is to ensure that all homeowners are treated fairly and kept informed throughout any land acquisition process.

For all questions and inquires, contact Douglas J. Conolly, c/o Amy Salak at 604.580.7066.

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What Happens to a Deposit When a Purchaser Defaults on a Contract of Purchase and Sale?

A deposit is a common feature in contracts of purchase and sale, particularly in real estate transactions. It serves as a demonstration of the purchaser’s commitment to complete the transaction and provides the seller with a measure of security. But what happens to the deposit if the purchaser fails to fulfill their obligations under the contract?

Purpose of the Deposit

The deposit is typically paid by the purchaser at the time the contract is signed or shortly thereafter. Its primary purpose is to secure the purchaser’s performance and to compensate the seller in the event of a default. The deposit is usually held in trust by a third party, such as a real estate brokerage or lawyer, until the transaction is completed or terminated.

Default by the Purchaser

A purchaser is considered to be in default if they fail to complete the transaction as required by the contract. The most common default is the failure to pay the balance of the purchase price on the closing date. Other defaults may include failing to provide required documentation, breaching warranties, or not satisfying condition precedent.

Forfeiture of the Deposit

When a purchaser defaults, the fate of the deposit depends on the terms of the contract and the applicable law. In most cases, the seller is entitled to retain the deposit as liquidated damages. Courts generally uphold the forfeiture of a reasonable deposit, recognizing it as a genuine pre-estimate of the seller’s damages resulting from the purchaser’s breach.

However, if the deposit is disproportionately large relative to the purchase price, a court may find it to be a penalty and refuse to enforce its forfeiture. The key consideration is whether the deposit amount is reasonable in light of the anticipated loss from a default.

Deposit as Liquidated Damages

The deposit is often characterized as “liquidated damages,” meaning it is intended to represent the damages the seller would suffer if the purchaser fails to complete the transaction. If the seller accepts the deposit as liquidated damages, they may be precluded from pursuing further damages unless the contract expressly allows for additional recovery.

Seller’s Right to Additional Damages

If the seller’s actual losses exceed the amount of the deposit, and the contract does not limit the seller’s remedy to forfeiture of the deposit, the seller may seek additional damages. These damages are typically calculated as the difference between the contract price and the resale price, plus any consequential losses directly attributable to the purchaser’s default.

Return of the Deposit

In some circumstances, the purchaser may be entitled to the return of the deposit. For example, if the contract is terminated due to the seller’s default, or if a condition precedent in the contract is not satisfied through no fault of the purchaser, the deposit is typically returned.

Practical Considerations

The contract should be carefully reviewed to determine the specific terms governing the deposit and the consequences of default.

The deposit is usually held in trust and cannot be released to the seller without the written consent of both parties or a court order.

Disputes over the deposit may require negotiation, mediation, or litigation to resolve.

Conclusion

When a purchaser defaults on a contract of purchase and sale, the deposit is generally forfeited to the seller as liquidated damages, provided the amount is reasonable and the contract so provides. The specific outcome will depend on the terms of the contract and the circumstances of the default. Both parties should ensure they understand their rights and obligations regarding the deposit before entering into a contract of purchase and sale.

If you are currently involved in a dispute pertaining to the return of deposit, you should reach out to me at suppal@mcquarrie.com.

Prepared by,

Sunny Uppal

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