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What is a Conditional Offer?

One of the final steps to purchasing a home is signing a document called the purchase and sale agreement.

When you’re signing a purchase and sale agreement, the buyer may choose to add some conditions that have to be met before they purchase. These often include conditions like securing a mortgage or getting a home inspection. The conditions need to be completed within the time period agreed upon by both parties. If the conditions are not completed and the seller does not agree to extend the time period, the offer will be considered void. The buyer then gets their deposit back without deductions.

 

Common Conditions

Some conditions are more common than others. One of the most common conditions is the buyer getting a mortgage, as

·         Mortgage financing arranged within a specified timeline

·         Inspection of the property

·         Sale of the purchaser’s current property

·         The buyer agrees to pay the balance of the purchase price, subject to adjustments, by electronic transfer, bank draft or certified cheque to the seller on the completion of this transaction

·         The parties consent to electronic signatures

·         Provide 72 hour notice to the buyer if the seller finds another written offer that is acceptable

·         Chattels fixtures & Rental items are included/excluded in the purchase price

·         Buyer has the right to view the property a certain number of times

·         The Seller agrees to deliver the property to the buyer free and clear of any personal property not included in this Agreement of Purchase and Sale and in good condition

 

Other Conditions

 

·         Subject to legal review: the buyer will proceed with the purchase once a lawyer reviews all the conditions (likely to occur in a pre-construction agreement of purchase and sale)

·         Subject to survey: solicitor to determine if there’re any defects in the title

·          In accordance with Federal Privacy Act (PIPEDA), the buyer and seller agree

 

Next Step

 

After, signing the agreement of purchase and sale, the first step is to arrange for your mortgage. You can either go to the bank such as, TD bank, Scotia Bank or CIBC, they offer their own mortgage products. On the other hand, you can find a mortgage brokerage, which will complete your mortgage request on your behalf.

 

Mortgage Broker

·         Has access to many lenders (banks, credit unions & private lenders)

·         One credit check conducted

·         Approval within 48 hours

·         One-stop house (real estate agents, lawyers & home insurance brokers)

·         Rebates available

 

Thus, with all the conditions to complete can be a difficult process. Find agents who can assist you in purchasing your dream home. RateShop is mortgage brokerage that Is a one-stop shop where you can find everything you need. We have our own in-house real estate agents, mortgage brokers, and wealth management specialists. Also, we can refer you to our home insurance brokers and lawyers, who will guide you through the whole process.

 


Payal Payal 04/04/2019
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Sitemap Updated On October 19, 2019. Copyright 2018. All Rights Reserved. RateShop.ca

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