You’ve made an offer on a property, what happens when it’s accepted?
You searched months for the perfect home, high and low, finally found the perfect one, you make it through negotiations and finally heard those 2 exciting words:
‘Accepted Offer’
Congratulations!….but now what?
The Subject Period
An offer can be drafted with or without conditions. An offer without conditions is known as a firm or subject-free offer and one with conditions is known as a conditional offer.
In the case that you have an accepted conditional offer, there will be clauses included in the contract for conditions (or subjects) that must be satisfied before the offer is considered firm.
Once your offer is accepted, you will typically have a period of 5 business days to do your due diligence and ensure any subjects you’ve included are fulfilled.
Here are 3 typical subjects you may include in your offer:
Subject to Financing – Once your offer has been accepted by the seller, this will be the first item of business we want to jump on, as this will ensure us that the home you are about to purchase, is one you can afford. We will send all the appropriate documents to your bank or mortgage broker, and they will get started on getting you fully approved.
Subject to Inspection – Having a professional home inspector go through the property can provide you with peace of mind and let you know of any potential issues/maintenance needed that you may not otherwise be aware of. We can provide you with a list of inspectors we know and trust.
Subject to Reviewing Strata Documents – If you’re buying into a strata, it’s important to review strata documents. These documents will tell you how much your monthly strata fee will be, if pets are allowed, the financial health of the strata, if there are any upcoming expenses you should budget for and other important information about the building and strata.
Removing Subjects
After all of the conditions of your offer have been satisfied, you will remove subjects and submit your non-refundable deposit which will be held in trust until the completion date. Once subjects are removed and deposit is submitted, the purchase is firm and binding.
Preparing For The Completion Date
Once the offer is firm and binding, there is typically a period of 1-3 months before you take ownership of the property.
Ideally around 4 weeks prior to closing, is when you should retain the services of your
lawyer or notary. They will open a file for you and obtain information from you to help them facilitate the purchase. They will arrange a time with you, likely a couple days prior to closing, for you to come into their office and sign final documents in person.
Prior to completion, you will want to arrange for movers, arrange for property insurance and utilities, book the elevator for your move (if needed) and start packing! If you need any recommendations for any of these services, our team can connect you with the right people.
On completion day, ownership will officially be transferred from seller to the buyer and all final amounts owing will be paid.
Then comes the most exciting part, possession day.
Possession Day
On possession day you’ll receive your keys from your agent and they’ll walk you through your new home, ensuring everything looks good and answering any last minute questions you may have.
Now, you can pop that champagne and celebrate!
This process may seem like a lot to keep track of, but with the guidance of a knowledgeable
agent to guide you through every step can make the process both manageable and enjoyable.
If you want to go over the process more in-depth, reach out and I’d be happy to connect!
Chantel Machnik
(604) 348-9169
