The Offer to Purchase a Calgary Home Standard Contract
What You Should Know about Home Buyer’s Conditions
The buyer’s conditions are for the benefit of the buyer. These “Subject To” conditions give the buyer the opportunity to walk away from the deal with no penalties.
Buyer’s conditions if not waived in writing ends the contract and no money is forfeited to the sellers from the deposit given by the buyer with the offer.
The two most common Buyers Conditions are:
The contract is subject to the buyer’s satisfaction with a property inspection.
If the buyer for reasons they need not explain to anyone are not satisfied with the property, they simply do not waive conditions and the contract ends. The deposit is then returned 100% to the buyer.
Many times, a home inspection will highlight something new to the buyers. The buyers then say they will waive the property inspection condition if they receive a price adjustment.
These new price negotiations can also end the contract if the buyer and sell can not agree on a price adjustment.
Home Inspectors are paid by the buyers as part of the buyer’s due diligence.
The contract is subject to the buyer satisfaction with the terms of financing.
If the buyer decides they do not like what the lenders are offering them they have the right to end the contract with no penalties. The deposit is returned 100% to the buyer.
The Walk Away Clauses
Property Inspection and Financing clauses in the standard Calgary Offer to Purchase Contracts makes it easy for a buyer to walk away from a deal with no penalties whatsoever.
Of course, contracts can be modified to change anything if both parties agree in writing to the changes.
The Condition Period is the time between when both parties agreed to a Conditional Sale and the Condition Date and Time to either waive or not waive conditions.
Waiving conditions creates a firm sale.
Until then the buyers have tied up the property preventing the sellers from accepting any other offers.
Buyer Conditions are a part of almost every contract. Calgary Realtors deal with them all the time and will help guide you through this part of the home buying process.