Real Estate Offer to Purchase – Mortgage Financing Conditions etc.
When buying a home, your real estate agent will often place conditions in an offer to purchase that allow for acceptance subject to further acts being carried out. The most common conditions placed in offers allow buyers time to obtain their real estate financing commitment from a mortgage lender and to also have a home inspection carried out. The timing of these two conditions usually flow in this order since the real estate agent often recommends that you first know you have been approved for mortgage financing before you pay for a home inspection.
Such clauses often read ” This offer to purchase is conditional upon the buyer obtaining satisfactory mortgage financing…failing which this offer will become null and void and the buyers deposit will be returned in full etc…” followed by “This offer is conditional upon the buyer being satisfied with the findings of a home inspector…within 4 days of removal of the mortgage financing condition…etc”
Naturally, a seller must agree to these terms and often does unless confronted with competing offers that may have better terms and conditions or if presented with other circumstances or information.
Once conditions are met your agent will have you sign a waiver form, as they must be removed within the time period allotted for the sale to become firm.
These are just examples and there may be other conditions that need to be included in a real estate offer to purchase and your real estate agent can help you determine that.
Article courtesy of iREx.ca