11 Aug What are Condition Periods?
Real Estate can be intimidating, especially when you are faced with piles of paperwork and legal procedures. Navigating through the contract stage can be complex and intricate. What happens when you are ready to make an offer on your dream home but you have concerns regarding your mortgage. Will there be any costly repairs in the near future that you won’t be able to remedy? Don’t worry, this is exactly why condition periods exists.
Typically, condition periods last 5 business days but that can depend on a variety of things and it is important to not make this timeframe too short so all of the terms can be satisfied. Waiving the conditions can only be done once the terms have been met and at that time the house will be considered sold. You just bought a house!
Table of Contents
Types of conditions
Financing Condition Periods
This is by far the most common and important condition that would typically be included in a purchase offer. It allows a buyer to review the purchase with a bank or lender. The price, qualifications, and state of the property will be assessed in addition to determining the mortgage amount and interest rate you are eligible for. We recommend that you use a mortgage broker to properly locate the right lender options for you before the process has begun.
Alternatively, Keylo’s Edmonton REALTOR® have partnered with Fundible to provide a certified financial-free approval to allow buyers the ability to make an offer without a financing condition. This can be a great option for buyers who wish to speed up the purchasing process and wish to give sellers peace of mind that they are reliable.
Home Inspection Condition Periods
As a seller, you don’t want to get caught with your pants down when entering into a contract and chance losing a potential buyer by being dishonest about the value of your house. With Keylo Care, you will be given a free, official appraisal so you can appropriately price your home at a fair market value and avoid any surprises when a buyer implements their appraisal condition.
Status Certificate Condition
Sale of a Home Condition
In order to proceed with the real estate transaction, the buyer must satisfy and waive the conditions within the agreed upon deadline. The buyer is in complete control of this step and cannot be ‘strong-armed’ into waiving anything by the seller. Immediately after having any condition satisfied, the waiver should be signed and delivered to the agent or seller.
Backing out without conditions
The exclusions where you could back out of a contract without legal ramifications could include;
- The property was partially or entirely damaged by an ‘act of god’
- The death of either party
- Undisclosed defects of the property
- The seller’s refusal to allow legally legitimate contingencies or addendums
- The seller refused inspection or manipulated the results of the inspection
- The seller is involved in illegal activity
- The seller is proven to be in breach of contract.
Legal guidelines and rules are different everywhere, and so it is important to talk to your REALTOR®, consult a lawyer or do your own research to determine what your rights and obligations pertaining to real estate and condition periods are in your area. The points outlined above are based on Edmonton real estate and eloquently detailed on edmontonrealestatelaw.ca.
Condition periods in a purchase offer can prove to be one of the most important assets that you can use throughout the process of buying or selling a home. Keep in mind that as a buyer, you may want to keep a light touch. It is important to find a balance between protecting your interests and keeping the sale appealing for both parties – some sellers aren’t interested in too many conditions, or too long of a condition period.
Contact Ryan Mracek today to discuss how he can be the agent you need in your upcoming sale or purchase.