Most Calgary foreclosures are court-ordered sales (also called judicial sales). On a typical morning about three out of four foreclosures on this site are court-ordered. The owner still owns the home, but a lender has gone to court, and the court has ordered it sold to pay back the mortgage.
That changes almost everything about how you buy it.
How it’s different from a normal sale
| Normal sale | Court-ordered sale | |
|---|---|---|
| Conditions on your offer | Financing, inspection, condo documents | None. Your financing must be in place before you offer |
| Counter-offers | Back and forth until you agree | None. The court doesn’t counter |
| Who decides | The seller | A judge, on the court date |
| How long until you know | A day or two | Weeks to months |
| The home’s condition | Seller disclosures, sometimes repairs | As is. Often vacant, little or no history |
The steps
- Get your financing settled first. Because you can’t make your offer conditional on financing, talk to your lender before you write anything. Some lenders are cautious about homes that need work, so tell them it’s a court-ordered sale.
- See the home, and check it. You can usually book a home inspection before the court date, but it can’t be a condition of your offer. Many buyers inspect before they offer, so they know what they’re bidding on.
- Check the price against real sales. Court-ordered sales are listed from appraisals and are often bid up. Over the last year, about a third of Calgary court-ordered sales sold above their asking price. See the sold prices page for the current numbers, and every listing on this site shows what similar homes sold for nearby.
- Make your offer. It goes to the lender, and if the lender agrees to it, the lender’s lawyer takes it to court for approval.
- Wait for the court date. This is the slow part: weeks to months while the lawyer waits for a date. Other buyers can still make offers in the meantime, and all offers go before the judge on the court date.
- The judge decides. The judge accepts one offer and rejects the rest, or rejects them all. If yours is accepted, the sale closes on the date set out in the court order.
One more thing to know: until the sale closes, the owner can pay the arrears and stop it.
Who court-ordered sales suit
- Buyers with financing already approved and a down payment ready
- Buyers who can wait weeks or months for an answer, and don’t need to move by a certain date
- Buyers who are comfortable with a home sold as is, and budget for repairs
- Investors and renovators who know what work costs
If you need to sell your current home first, need your offer to be conditional, or need to know by next week, a bank-owned home or a regular listing is usually a better fit.
Common questions
Is a court-ordered sale a bargain? Sometimes. Lenders and the courts price to the market, and competing offers on the court date push many of them up. The savings, when there are any, usually come from condition: a home that needs work keeps other buyers away.
Can I see it before I offer? Usually, yes. Book showings like any other listing.
What if I find a problem after the court date? The home is sold as is, so do your inspection and checks before you offer, not after.
This guide is general information, not legal advice. A real estate lawyer should review the terms of any court-ordered sale before you sign.