How to buy a funeral home in British Columbia: licences, ownership rules and what transfers

Buying a funeral home in British Columbia means working under the Cremation, Interment and Funeral Services Act. Under section 55, and subject to its subsection (5), a person must not act as or purport to be a funeral provider, among others listed there, unless licensed for that purpose or exempt by regulation, and a director may issue a licence and impose conditions on it. Consumer Protection BC publishes the licensing information for funeral services. This guide covers who the director is, how the licence works, whether it moves on a sale, what the Act requires of a funeral provider day to day, how care funds affect a business that also runs a cemetery, and what to ask the seller for. It covers British Columbia law only.

Who regulates funeral providers in British Columbia

The Act defines a funeral provider as a person who carries on the business of providing funeral services, and it defines the director as a director under the Business Practices and Consumer Protection Act. Consumer Protection BC’s licensing pages have a section for funeral services, with further pages on renewing a licence and changing licence information. Start there, then ask Consumer Protection BC which licence applies to the business you are buying and what must be filed after closing.

How the licence works

Section 55(2) lets a director issue a licence to an applicant and impose conditions on it. Section 55(3) applies sections of the Business Practices and Consumer Protection Act on applying for a licence, the director’s actions respecting a licence, and the opportunity to be heard and reconsideration. Section 55(5) adds that if an applicant or licensee contravenes that Act or its regulations, the director may decide to refuse to issue the licence, or to suspend, cancel or amend it or impose or rescind conditions on it. Ask the seller for the current licence and any conditions already on it, and ask whether the director has ever refused, suspended or amended a licence held by the business or its owners.

Does the licence move on a sale

The sections read for this guide do not say whether a funeral provider’s licence can be transferred to a buyer. Do not assume it can. Ask Consumer Protection BC whether the buyer must apply for its own licence before it takes over, and whether the seller’s licence has to be cancelled or amended when the business changes hands. Ask your lawyer how the answer should be reflected in the purchase agreement. BDC says a lawyer can assist with the letter of intent, draft the purchase agreement and conduct legal due diligence. The general steps are in how to buy a business in Canada.

What the Act requires of the person running the business

A funeral provider must not provide funeral services unless it has received written authorization from the person who has the right to control the disposition of the remains. The Act allows a telephone authorization to begin services if the provider does not dispose of the remains until written authorization arrives. A funeral provider must also maintain records of a prescribed category as the regulations require. Unless a contrary intention appears, and except for section 55, the Act says a duty or prohibition it imposes on a funeral provider applies, as the context requires, to every director, officer, employee and agent of that provider, so ask the seller how authorizations and records are handled now.

Who is answerable after closing

The Act says a funeral provider is responsible for ensuring that funeral services provided by or on its behalf are in accordance with the Act and its regulations. An operator carries the same responsibility for a place of interment or crematorium. Under section 55(4), a licensing decision made under section 146 of the Business Practices and Consumer Protection Act, as adopted, or under section 55(5) may be reconsidered in accordance with section 60 of the Act. Ask the seller for a clear account of any past contravention, and ask Consumer Protection BC what, if anything, is recorded against the licence.

Care funds apply to cemeteries, not funeral homes alone

If the business also operates a place of interment, the Act has a transfer rule that a funeral home alone does not trigger. Where a care fund has been established for the place of interment, section 31 says the operator must ensure the fund is transferred to the subsequent operator before that operator takes control. Until the subsequent operator signs a new trust agreement with a savings institution, the existing agreement applies to that operator. Another section says that, subject to section 32, a care fund is not available to satisfy the operator’s liabilities. Ask whether any care fund exists.

What to ask the seller for

• The current funeral provider licence and any conditions the director has imposed on it.
• Any decision, notice or reconsideration involving the licence under the Business Practices and Consumer Protection Act process.
• A sample of written authorizations from the person controlling disposition, and the records kept under the Act.
• If a cemetery or crematorium is part of the sale, its licence, care fund trust agreement and audit records.
• Written confirmation from Consumer Protection BC of what the buyer must file or hold at closing.