OK don’t panic here. This word can freak people out, make peoples back sweat and second guess themselves. All a contract is, is just an agreement between two people. In this case the buyer (you) and the seller (we’ll call her Grace.)
That’s literally it!

So Why Do I Sign A Contract:

When you buy your home, there are a variety of NORMAL elements you need to come to agreeance on. For example, price you’ll pay, the deposit amount, date in which you take possession, date in which you pay & what items are included in the sale + more.
This document just outlines for each party what the fine details are. You will go over this with your agent (because you took our advice of picking the right agent) and they will happily discuss any points you are unclear on. After all, both the buyer and seller of the unit have to sign it and agree for it to be binding. Of course never sign something you are not sure on.

What Are Conditions/Subjects?

These are included into the terms and conditions of the contract. These are agreed upon terms that need to be fulfilled, usually by a declared date, before the contract can be finalized. A few common subjects include:

  • Subject to Inspection
  • Subject to Financing
  • Subject to Strata Documentation being received
  • Subject to Sale of Existing Home

The above are just basic examples and not word for word of course. But all they are doing are stating what needs to happen before the contract can be completed. Once again, both parties have to sign in agreeance and it’s common for negotiation to take place in these so don’t panic when you see them come up.

An example of one subject is below:

Subject to the Buyer, on or before (December 15, 2018) at the Buyer’s expense, obtaining and approving an inspection report against any defects whose cumulative cost of repair exceeds ($1,000) and which reasonably may adversely affect the property’s use or value. The Seller will allow access to the property for this purpose on reasonable notice.This condition is for the sole benefit of the Buyer.

Taking all the legal coating off of this subject, all it means is the buyer will have a home inspector come and view the property by December 15th, which they will pay for. Providing the reports repair work does not exceed $1,000 (unless they choose to accept more repairs) and is not substantial in a way it will effect them living/using the home, they are happy to proceed. You’ll notice the line “This condition is for the sole benefit of the Buyer.” at the end, this is always added just to show who benefits from the particular clause.

What Is a Counter Offer?

Again, nothing to fear! Also, very common. A counter offer is quite literally that. You have presented your offer and the seller has come back with a counter. This could be a counter on anything, such as completion date, particular clauses, price and so on so forth. If this is acceptable to you as a buyer, you will accept these terms, sign and move onwards. If not, you can provide a counter offer yourself to the seller. This process can go back and forth until an agreement is reached, or either party would not like to counter anymore and walks away.

There’s no need to panic on contracts. The key is open communication with your REALTOR and having realistic expectations. Some like to have the offer looked over by a notary or lawyer. Whatever makes you feel comfortable is the right decision.

For ANY help on third party requests we have relationships in place with all of the professionals you will encounter along the road of any Real Estate transaction. Lawyers, inspectors, brokers……. Whatever you need we’ve got the sauce! It’s free, it’s in your best interest & we want to talk to you about it at your convenience so contact us if you need a referral of any sort!

Thanks for reading,
Vancouver First Time Home Buyers

Jay Mcinnes
T: 604.771.4606

Ben Robinson
T: 604.353.8523