Congratulations, you have successfully negotiated the terms of your Offer to Purchase and the seller has accepted...now what?It is most likely that we have added certain "Subject Clauses" to the offer making it conditional.  This means that the contract will only become final when the conditions are met.  After the offer is accepted, you'll typically have 5-8 days to remove these subjects and make the offer to purchase final. Here are the steps involved in removing some of the common subject clauses:

1.    Financing:  A pre-approved mortgage certificate is not a guarantee of being approved for the mortgage loan.  Even if you have a pre-approved mortgage certificate, you must still meet with your lender during the conditional offer period to get a final mortgage approval.  To ensure that the process goes smoothly, make sure you bring:
  • A copy of the property listing; and
  • A copy of the signed Offer to Purchase (Contract of Purchase and Sale)
Your lender will update/verify your financial information, and put together the information required to complete the mortgage application.  Your lender may require an appraisal and/or a survey.  Title insurance may also be required. 

To Do:  Call you banker immediately.
  Explain that you have an accepted offer to purchase and ask if he/she would like you to fax/email a copy of the contract or if an appointment is required.  Make the lender aware of the subject  removal date.
2.    Inspection:  It is always a good idea to have the home you are buying inspected by a knowledgeable and professional home inspector.  The inspector will go through the property and perform a comprehensive visual inspection to assess the condition of the house and all of its systems.

To Do:  Call a home inspector
and book an inspection appointment.  I suggest booking the inspection for 1-2 days before the subject removal date.  Because the inspection can cost upwards of $500, you'll want to ensure that you       can remove the other conditions before having the home inspection completed.

3.    Insurance:  Occasionally, some difficulties arise when attempting to insure a home.  This clause gives you the opportunity to check with your insurance broker to ensure that the home is insurable.

To Do:  Visit your insurance broker and explain that you are planning to purchase a home. provide the property address and ask if the home is insurable at what rate.

4.    Title:  Obtain a copy of the title search from me and review it.

To Do:  Take the title search to Langley City Hall
(if your new home is located in Langley City) or Langley Township Hall (if your new home is located in Langley Township).  Have the staff explain if and where any easements or rights of way are located.

5.    Property Disclosure Statement:
  This form enables sellers to disclose known defects with the property.
To Do:  Carefully review the Property Disclosure Statement, <spansign on the bottom and return the PDS to me.

6.  Review Strata Documents:
(where applicable).  If you are purchasing a strata unit (Condo or Townhouse), the seller must provide you with various "strata documents".
           
To Do:  Carefully review all provided strata documents
- ask me any questions that arise. Remember, each and every property and situation are unique.  Please use this information as a guide only.  My team and I are here to assist you with every step of the process so if you have any questions, please do not hesitate to ask.

Rob