When Wildfires Interrupt Your Home Purchase: What Every Buyer Needs to Know
For many Canadians, buying a home is one of life's most exciting milestones. You've found the perfect property, negotiated an accepted offer, arranged financing, and started picturing where the furniture will go. Then, almost overnight, Mother Nature throws a curveball.
A wildfire starts nearby.
As someone who has spent many years helping Canadians navigate home financing, I've seen firsthand how quickly a wildfire can change what seemed like a straightforward transaction. The good news is that many purchases still close successfully—but it's important to understand how these situations can affect everyone involved.
One of the most important concepts in a real estate contract is something called force majeure. While the exact wording varies depending on the contract, a force majeure clause generally recognizes that extraordinary events beyond anyone's control—such as natural disasters—may temporarily prevent one or more parties from fulfilling their contractual obligations.
If evacuation orders are issued, government offices close, roads become inaccessible, or lawyers, lenders, appraisers, or buyers simply cannot complete the necessary steps to transfer ownership, a force majeure clause may allow the closing date to be postponed until those circumstances have passed. It doesn't automatically cancel the sale, but it can provide valuable flexibility during an unpredictable situation.
This is one of the reasons it's so important to stay in close communication with your mortgage broker, REALTOR®, lawyer, and lender. Everyone needs to understand what's happening so adjustments can be made if necessary.
One issue that catches many buyers by surprise is home insurance.
Most lenders require proof of insurance before they will release mortgage funds. During wildfire season, insurance companies sometimes place temporary restrictions or even stop issuing new policies altogether for homes located in high-risk areas.
If you've waited until the last few days before possession to arrange your insurance, you could suddenly discover that coverage isn't immediately available. Without insurance, your lender may be unable to advance your mortgage funds, potentially delaying your closing.
My advice is simple: purchase your home insurance as early as your insurer will allow.
Having coverage arranged well in advance greatly reduces the chance of running into last-minute surprises if wildfire conditions change. It's one of those tasks that's easy to move to the bottom of the list until it suddenly becomes the most important item on it.
Wildfires can also create a ripple effect that extends well beyond the property you're purchasing.
Imagine you're buying a home in one community because your current home has sold and is scheduled to close first. Everything is carefully timed.
Then a wildfire threatens your existing neighbourhood.
Perhaps your buyers are unable to obtain insurance. Maybe their lender won't fund the mortgage until conditions improve. Or perhaps the buyers simply cannot complete the purchase because of evacuation orders.
If the sale of your current home is delayed, you may no longer have the funds available to complete the purchase of your next home. That can create a chain reaction affecting multiple transactions, sometimes involving several families.
These situations are stressful, but they also highlight why real estate professionals, lenders, and lawyers work so hard together when unexpected events occur. Everyone's goal is usually the same - to find a practical solution that allows the transaction to move forward once circumstances permit.
If you're buying or selling during wildfire season, don't be afraid to ask questions. Understand how your contract addresses unforeseen events. Arrange your insurance early. Keep your financing documents up to date. Most importantly, stay in regular contact with your mortgage broker and the rest of your professional team.
Wildfires are unpredictable. Preparation isn't.
While none of us can control the weather, we can control how prepared we are when unexpected challenges arise. A little planning today may make all the difference tomorrow, helping ensure that when the smoke clears, you're still on track to receive the keys to your new home.
