Buying a home – Conditions
Further to the last few posts, one of the many points to consider when buying a home is conditions. When a property goes “pending” we mean that an offer has been accepted by the seller, and it is pending removal of conditions. During this pending state, there is a legal document in place, meaning the seller can not sell to anyone else at this time, and the buyer will only not proceed if one or more of their conditions are not met. If the purchaser is not satisfied that their conditions have met, they will choose NOT to remove their conditions, and thus terminate the contract, have their deposit returned and allow the property to go back on the market. If the purchaser is satisfied that their conditions have been met, they will choose to remove their conditions and officially complete the sale of the home.
A condition can be anything you want it to be (sellers can theoretically put conditions on as well). The most standard conditions are:
1) property home inspection – the buyer to have a certified inspector to examine the property at the cost of the buyer.
2) finance condition – the purchase of the home to be approved by the lender in order to obtain a mortgage
3) condo document review – every condo in Alberta is a corporation, and thus must keep financial and property specific records. The buyer has a chance to review these and ensure they are acceptable to them before proceeding.
These are the most common conditions, however like I mentioned before a buyer can put forth whatever condition they want to have the seller accept. For example – purchase is conditional to review of the property by purchasers father (when a parent isnt able to attend an intial showing), or purchase is conditional to the buyer receiving and signing official job transfer papers (when the buyer is still waiting on confirmation they will be relocated to a new city).
Typically conditions run anywhere from 5-10 business days, although quite often 5 business days should be more than sufficient to complete everything, provided you have already been preapproved.
