What Conditions Should Be in an Offer on a House in Nova Scotia?

When you write an offer on a house, conditions are the clauses that say the deal only goes ahead if certain things check out. They are your safety net. Without them, you may be committed to buying even if the financing falls through or the inspection shows a serious problem.

There is no single list that suits every home. A rural house on a well and septic system raises different questions than a downtown condo. This article explains the common conditions in plain terms and what each one protects you from, so you can talk it through with your lawyer and agent before you sign.

This article covers the law of Nova Scotia.

What a condition does

A condition is a requirement written into the agreement of purchase and sale. It usually has a deadline. If the requirement is met, the deal moves ahead. If it is not, the agreement may allow you to walk away or renegotiate, depending on the wording.

The wording and the deadline matter a great deal. A vague condition or a missed date can leave you without the protection you thought you had. This is one reason the province advises having a lawyer review the agreement before you sign.

Common conditions and what they protect

Each condition should name what must happen, who must do it, and by what date. Your agent and lawyer can help you choose the ones that fit the home you are buying.

Title, the PID and the legal description

A PID is a parcel identification number. A document relating to a registered parcel may incorporate the legal description by full text, by short form legal description, or by the PID. The province recommends a lawyer for real property transactions, including identifying the correct PID and matching the legal description to the parcel.

For a buyer, this means a title or legal review condition is not a formality. It gives your lawyer time to confirm that what you are buying is what the seller is describing. If a parcel has no PID, the owner must request one using Form 1 before submitting a Parcel Description Certification Application, which can take time, so raise it early.

Extra conditions for condos and new builds

If you are buying a condo, you should get the declaration, bylaws, common elements rules, reserve fund status certificate and audited financial statements before buying, and ask whether the declaration prohibits any use such as pets or running a business.

• For a resale unit, the province advises making the offer conditional upon receiving an estoppel certificate.
• On a resale condo, the estoppel certificate must state the corporation's insurance coverage, including fire, public liability and directors' liability insurance and the amount or value of each policy.
• Ask whether a reserve fund study has been conducted, whether finances match its recommendations, the reserve fund balance, and whether major repairs are expected.

For new condo units bought from the declarant, there is a separate protection. The buyer has ten days to rescind if the documents materially affect enjoyment of the property and the vendor will not fix or waive the issue. Rescission must be in writing and in the vendor's hands within that ten-day cooling-off period.

For condominiums, a new home warranty is not required by law in Nova Scotia, though some builders offer one or provide one through a third-party program. If a warranty matters to you, make it part of the offer, and ask your lawyer how it applies to the kind of home you are buying.

What to do next

• Talk to your lawyer before you sign, not after.
• Match each condition to a real risk with this particular property.
• Check that every condition has a clear deadline you can realistically meet.
• Book the inspector, and any well or septic testing, as soon as the offer is accepted.
• Give your lender the signed agreement promptly.
• For a condo, request the estoppel certificate and the financial documents right away.

Rules for houses differ from condos, so confirm what applies to your property type.

Frequently asked questions