SUBJECTS AND CONDITIONS

Subjects are various conditions that the offer is “Subject” to. These are the most important conditions to be met in order for your offer to be binding.

Some of the recommended common subjects variations include:

1) FINANCING

Subject to the Buyer approving a mortgage with current rates and terms acceptable to the Buyer by (Date)
If a mortgage is needed to fund the purchase, this subject will give you the time to get the loan submitted and qualified with your lender.

2) BUILDING INSPECTION

Subject to the Buyer, on or before (Date) at the Buyer’s expense, obtaining and approving an inspection report against any defects whose cumulative cost of repair exceeds (Dollar Amount) and which reasonably may adversely affect the property’s use or value.
As a buyer, it is your responsibility to do your due diligence in ensuring the quality of the home you are considering purchasing. It is recommended to hire a third-party home inspector (not your Uncle!) to give you reassurance that the home is in good condition.

3) PROPERTY INSURANCE

Subject to the Buyer obtaining approval for fire/property insurance, on terms and at rates, satisfactory to the Buyer, on or before (Date)
This subject is to give you the time to speak to a home insurance company and make sure that you can be approved for acceptable insurance rates in this area.

4) PROPERTY DISCLOSURE

Subject to the Buyer on or before (Date) obtaining and approving a Property Disclosure Statement with respect to information that reasonably may adversely affect the use or value of the strata lot, including any bylaw, item of repair or maintenance, special levy, judgement or other liability, whether actual or potential.
The property disclosure form will give the seller a chance to disclose any issues within the home. Remember that the statements made within this form is to the best knowledge of the seller, and is not guaranteed to be accurate. It is recommended you do your own due diligence in inspecting the home and confirming all important information.

5) TITLE SEARCH

Subject to the Buyer, on or before (Date) searching and approving title to the property against the presence of any charge or other feature, whether registered or pending, that reasonably may affect the property’s use or value. If this condition is waived or declared fulfilled, the copy of the title search result will be incorporated into and form part of this contract and the Buyer acknowledges and accepts, despite any other provision in this contract, that upon completion the Buyer will receive title containing any non-financial charge set out in the copy of the title search results that is attached to and forms part of this contract.

The land title will provide you with information about the lot pertaining to Registered Right-Of-Ways, Easements, Restrictive Covenants, Building Schemes, Liens, etc.

Right-Of-Way’s and Easements are particularly important since they can restrict your possibilities of future development and land value.