Buying A Home in Vancouver BC

The Decision to Purchase

What are my choices?

What can I afford?

What are my needs?

What is a real estate agent?

Where do I start?

How do I make an offer?

How do I close the deal?

About "Subject" Clauses

The purpose of a subject clause (also known as a condition precedent) contained in an offer to purchase is to set out a specific condition which must be fulfilled before the sale can go through.

Subject clauses must be carefully and precisely worded. You would be wise to get professional help in composing them; however, it is ultimately your responsibility to be sure the clauses mean what you want them to mean.

There can be as many subject clauses as you are able to negotiate with the seller; however, the fewer you put in an offer, the more serious you seem as a buyer and the better the chance is that your offer will be accepted. Remember that you are, in fact, asking the seller to take the property off the market during the period while you are attempting to fulfill the conditions you have set.

Some possible items you might wish your purchase to be "subject to" include:

• a satisfactory professional building inspection.



• the arrangement of the financing you require.



• the lender's approval of your application to assume the seller's existing mortgage.



• the sale of your present home.

When you place "subject to" clauses on your offer to purchase, you are required to use every reasonable effort to see that the conditions are satisfied. Once you have fulfilled the conditions, written notification should be given to the seller that you are removing the subject clauses.

If you are unable to meet the conditions after making every reasonable effort to do so, the contract ends and there are no legal obligations to complete the purchase. A seller may wish to accept your offer containing subject clauses, yet still be free to consider other offers until you have removed the conditions.

To allow him or himself this freedom, the seller may ask for a clause in the agreement which permits the seller to require you to remove all subject conditions within a short, specified time period (usually between 24 and 72 hours) if the seller receives another attractive offer. If you cannot do so, your conditional contract comes to an end. Vendors are most likely to request this time clause where you have made an offer which is subject to the sale of your current home.

Completing Your Purchase

The contract of Purchase and Sale which you signed will state the completion day for the transaction. On that day legal ownership will transfer from the old owner to you in exchange for the purchase price of the property.

Do you need legal assistance to complete the purchase?

It is normal practice for the buyer to engage a lawyer or notary public to prepare the documents necessary to transfer the legal ownership.
Among other things, he or she will protect your interests by:

• searching the title in the Land Title Office registration system to find if anyone other than the seller has any legal rights to the property and to see if there are any registered easements or restrictive covenants.



• preparing the documents to transfer ownership from the seller to you, including the property purchase tax return.



• ensuring that the seller's old mortgage has been properly discharged if this is required.



• confirming that all payments for which the seller is responsible have been made.



• arranging for you to sign the transfer documents.



• preparing a Statement of Adjustments outlining all monies owned by you and the funds you will need to complete the transaction.



• delivering the final amount due to the seller and ensuring you are registered as the owner in the Land Title Office.

The day has arrived!!

You have signed the documents, turned over your cheque and received the keys.

THE HOME IS YOURS !

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