When you’re buying a home, “subjects” are conditions that need to be met before the sale can be finalized. Subjects can be for a homebuyer, homeseller or both. In a busy market, buyers might not have a chance to make an offer with subjects. In a balanced or slow market, sellers may not have a chance to get an offer without subjects. Let’s dive into what the purpose of subjects are and some common subjects to add to your purchase agreement.
Sometimes, when you’re making an offer on a home, there’s not enough time to complete all your due diligence upfront. For example, you might not be able to organize a home inspection right away or your lender may need some time to complete the final mortgage approval. That’s where subjects come in – you can make your offer “subject to” having a home inspection so you don’t miss out on your dream home!
Some examples of subjects you may need to include are getting approved for financing, passing a home inspection, verifying land title documents, or reviewing strata documents (if you’re buying a strata property). If you’re worried about selling before buying, you can even include a subject to the sale of your current home.
Once you’re happy that all the subjects have been met. You can proceed with the sale and become the proud new owner of your new home!
