Step 4 – Closing the deal
Once you have your offer accepted, you need to fulfill the subject clauses written into the contract of purchase and sale in the timeline indicated in the clause before the contract is finalized (also known as removing subjects).
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If <subject clause below> is written in contract… |
You need to… |
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“Subject to Financing” |
Have your buyer’s agent forward your accepted contract of purchase and sale to your mortgage broker right away. Some banks may require a home appraisal before your mortgage is approved. Home appraisal costs are generally covered by the bank. Once appraised, your mortgage broker should be able to confirm mortgage approval within 2-3 business days. |
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“Subject to Title Search” |
Have your buyer’s agent forward you the title search for your property. Your agent may review some general terms on the title search with you, but if you require more detail for specific terms, you may need to talk to a lawyer. |
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“Subject to Home Inspection” |
Schedule an appointment with a certified home inspector to inspect your home. Look through the final home inspection report. If the report indicates the need for repairs that are beyond what you have deemed as reasonable, re-negotiate with the seller to see if the repairs can be done before you take possession or if the seller can compensate you for the repairs. |
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“Subject to Property Disclosure Statement” |
Have your buyer’s agent review with you a copy of the seller’s property disclosure statement. This statement generally lists any defects in the property that the seller knows of. |
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“Subject to Approval of Strata Documents” |
Have your buyer’s agent forward you strata documents for review. Generally, the documents include: 2 years of strata meeting minutes, the engineer’s report, bylaws and rules, financial statements, the strata plan, and a document known as Form B. Read through the documents, and talk with your agent if there are any questions. |
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“Subject to Parking Stall & Storage Locker Verification” |
Have your buyer’s agent call the strata property manager to confirm the parking stall and storage locker that is registered for your lot. |
Buyers are required to sign subject condition removal forms to indicate when subjects have been fulfilled and removed. If more time is required to fulfill and remove a subject, tell your agent immediately.
Tip: In life, you get what you pay for. When it comes to finding a home inspector, it pays to find a good home inspector who will do a thorough job in inspecting your home. Spend a little more in getting a certified, licensed, and insured home inspector inspect your home. Having Uncle Bob or your friend who happens to be a contractor to inspect your home is not the same may seem more cost efficient but may be more costly if problems arise after the home has been purchased.
