Real Estate Purchase Contracts – Common Conditions

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You’ve found your dream property and you’re ready to write the offer! All you have to do is figure out what purchase price you’d like to offer, right? Wrong! Unless you are in a position to pay cash for the full price and aren’t concerned about any future financial legal/structural/maintenance issues you may want to consider putting some Conditions on the Real Estate Purchase Contract (Offer). Conditions are put in to protect you the Buyer (there can also be Seller’s Conditions placed in a Purchase Contract but this article focuses on the Buyer’s Conditions) It’s important to understand what these conditions mean and what will be in your best interest. It’s also important to note that the less conditions you are able to put in the Real Estate Purchase Contract, the more attractive the offer may be to the Seller.

  •  Financing – This ensures that you don’t enter into a contract that you’re unable to get the Mortgage for! Even if you’re preapproved for a certain amount your bank may require more info on the specific property you choose before they’re willing to lend you the money. Don’t get caught being unable to close due to not enough money!
  •  Property Inspection – A Property Inspection by a Qualified Inspector lets you know of any issues that the home may have. Some may be minor fixes and some may be major issues. Once the report is received you can decide how/if you want to proceed with the purchase.
  • Sale of Buyer’s Home – Did you know you can write an offer on a Property even if you need to sell your home first? Once you sell your home you remove this condition or if the Sellers receive another offer they’d like to accept they can give you agreed upon notice and if you’re unable to remove the condition they can enter into a contract with the new Buyer.
  • Condominium Documents – If the property is a Condominium you will want to review the Documents and make sure they are acceptable to you.
  • Water Quality – If the property is on a private well system, you want to ensure the water is fit to drink. You may also want to do a flow test.
  •  Subdivision Plan – This is your opportunity to review and approve the Subdivision Plan

 

A Real Estate Purchase Contract contains a lot of information and some of it can be confusing/unclear. These descriptions of the Conditions are simplified and there are also many other conditions/terms you may need to consider to make the Purchase go as smoothly as possible. The best way to ensure you’ve got all your bases covered is to work with a knowledgeable Realtor® who will LISTEN to your needs and work FOR you and WITH you. More info on working with a Realtor® can be found here: Alberta Real Estate Association – Consumer Information

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Dori Westin and Brad Insel

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