Working Towards Satisfying Buyers Conditions in the Home Purchase

Posted by Jerad Cox on Sunday, August 23rd, 2015 at 11:15am.

 

Home Buyers Conditions

 

Prime Edmonton Real Estate - Once a home buyer has an accepted offer in their hands, it is time to get to the business of satisfying the Buyer's Conditions in order to turn the property from a Pending Sale to Sold. The period of time to be able to satisfy these conditions is negotiated individually within the purchase contract, but in general range anywhere from 5 to 14 days. The length of time agreed upon will need to factor in the number and type of conditions to be satisfied, upcoming statutory holidays, and other factors. It is generally agreed that it is better to have a day or two longer than necessary for conditions rather than creating an overly tight timeline that then needs to be lengthened with an amendment later on. Buyers always want more time to satisfy their conditions, while sellers always prefer that their home is tied up for less time.

The 3 most common conditions in Residential Purchase Contracts are 1) Financing Condition, 2) Home Inspection Condition, and 3) Condo Documents Condition. For me, within these conditions there are 2 types of conditions - ones you as a buyer can control, and ones that you cannot control.

Buyer's Conditions You Can Control

A buyer can absolutely control how quickly they can satisfy their condo documents and home inspection conditions. You should attempt to get these conditions organized ASAP. The sellers should have all condo documents ready for you when final acceptance takes place, so the key is that you take the time to read over them thoroughly at least once (if not twice). This can be a daunting process, so share the task with someone you trust, or, if absolutely necessary, hire a condo document reader to analyze and summarize the highlights and concerns of the package for you.  With regards to home inspections, make sure that you have 2 or 3 different inspectors that you are comfortable with as sometimes your mutual schedules do not fit and you won't be able to get them into the home within your condition timeline. Book them the day after final acceptance. I do suggest that you wait until the 2nd last condition day before getting your home inspection, however, and here's why: If you are for some reason unable to get financing on the home, then you won't have wasted $500-$1000 out of pocket on a fruitless inspection.

Buyer's Conditions You Cannot Control

This is primarily the financing condition. If you have already been pre-approved for a mortgage before submitting the offer then your mortgage professional does most of the work for you. You can help control how quickly this condition gets looked at by 1) making sure you have all of your financial and employment documents available, and 2) by keeping in constant communication with your mortgage professional. My rule of thumb is to contact your mortgage pro on day 1, 3,5 of your condition period, then every day after that. By keeping in constant contact with your mortgage pro will help ensure that all pertinent information is gathered by the bank in time for them to make a decision. And don't be afraid that you will annoy them - worst case scenario if they are getting impatient is that they push to get your mortgage done extra quick so that they don't have to hear from you every day!

By taking the time to satisfy your Buyers Conditions quickly you will save time, energy, and a lot of worry - have a plan and stick to it!

1 Response to "Working Towards Satisfying Buyers Conditions in the Home Purchase"

The Ultimate Edmonton Home Buyers Guide wrote: [...]be caught having to rush to the bank last minute to make sure these funds are in place on time!
Working Towards Removing Conditions - There are certain conditions that you are not in as much control of satisfying - such as[...]

Posted on Monday, January 25th, 2016 at 2:25pm.

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