What Conditions Can You Put in an Offer to Buy a Home in BC?

A subject, also called a condition, is something that must happen before your purchase becomes firm. It gives you time to check what you are buying and to arrange your money.

Good subjects are specific, achievable and tied to a clear date. This article explains common examples and how to think about wording, but your realtor and lawyer should review the actual wording before you sign.

This article covers the law of British Columbia.

Why subjects matter

Under the Law and Equity Act, a contract respecting land generally is not enforceable unless there is a signed writing showing the contract was made and giving a reasonable indication of its subject matter, although it can also be enforced where the party to be charged has done acts indicating a contract was made, or where reasonable reliance would make non-enforcement inequitable. This rule does not apply to a lease of land for a term of 3 years or less, or to a contract to grant such a lease.

Some offers provide for no deposit until after subjects are removed. A buyer usually makes a deposit with the offer or after the offer is accepted. How your deposit is timed relative to subjects should be clear in your offer.

Common subjects and what to consider

• Financing: you are approved for a mortgage on terms acceptable to you. Name the amount and a date, and be clear whether you need the lender to approve the property itself.
• Home inspection: you are satisfied with an inspection by a qualified inspector. Say who may attend and the date by which the report must be reviewed.
• Strata documents: you have reviewed and are satisfied with the strata's financial statements, minutes, bylaws and Information Certificate. A strata corporation must give an Information Certificate within one week of a request by an owner, a purchaser or a person they authorize.
• Title search: you are satisfied with the title and any charges registered on it.
• Sale of your current home: if your purchase depends on selling, say so clearly, though sellers may find this subject less attractive.

How to word a subject

Wording should say what is being checked, who must be satisfied, and by what date. A vague subject can lead to a dispute about whether it has been met or properly removed.

• Identify the document or report by name.
• State whose satisfaction is required, such as the buyer's.
• Set a specific date for completing and removing the subject.
• Confirm how and in what written form the subject will be removed.
• Avoid open-ended phrases that leave the end date unclear.

How a particular subject should be worded depends on your situation, so it is worth confirming with a lawyer.

Removing subjects and the deposit

Removing your subjects makes the contract firm. Before you do, make sure you have your financing confirmed, your reports reviewed and any questions answered. What happens if you miss a date depends on the contract wording, so confirm that with a lawyer.

Deposit money is usually held in trust. It is usually held in the licensee's brokerage trust account, and the brokerage holds it as stakeholder. If a deposit is at risk of being forfeited, the court may relieve against all penalties and forfeitures on terms it thinks fit. That is a court process, not something to count on, so get advice before you walk away from a firm deal.

What to do next

• Ask your realtor which subjects fit your situation and the property type.
• Request strata documents as soon as possible if you are buying a strata lot.
• Book your inspector and speak to your lender before you write the offer.
• Have a lawyer or notary review the contract, ideally before you remove subjects.
• Keep signed copies of the offer and every change.

Frequently asked questions