Continuing from our last blog on Page 1 of the Contract of Purchase and Sale we wanted continue with page 2 and the extremely important subject, conditions, terms and really anything else.
Page 2 can actually be multiple pages and usually is. For strata contracts you should see at least 2 to 3 and this section is referred to as the Addendum.
If you are making offers with your Realtor and have a blank addendum you should be very careful!
First lets take a look at the addendum
- Included items
- Parking info
- Anything else
In the end you can put anything in the addendum and you should be protecting yourself here with many terms and conditions.
Many times you have to buy a home “subject free” in a competitive market. Just make sure you did your subjects in advance!
For the sake of this section let’s assume we have an accepted offer. An accepted offer means you as the buyer and the seller of the property have signed off on price, terms, dates, etc… You know have an accepted offer with your conditions. At this point no other buyer can purchase the property and the ball is completely in your court. At this point you need to “remove subjects” in order to go firm on your contract and then eventually close on your home.
Subjects are an important aspect of every contract. To make it easier here is an example:
INSPECTION: “Subject to the Buyer on or before May 15, 2018, at the Buyers expense, obtaining and approving an inspection report. This condition is for the sole benefit of the Buyer. The seller will allow access to the property for this purpose on reasonable notice.”
What this means is that if the inspection goes well and you decide to “remove subjects” by May 15 2018 you will go firm on your purchase!
Other subjects often include getting all the strata documents, getting your financing approved, receiving a title search, oil tank inspections for houses and many other unique scenarios for each place as each one is different!
Other than your subjects you should also have many conditions. Having the home professionally cleaned, confirming no oil tank is on the property (for detached homes), included items such as TV mounts or mounted shelving and anything else. This are in place to protect you and give you assurances once you do get your keys.
Take special note on the contract to terms such as the Special Levy or Special Assessment clause. Very important when buying into a strata – especially if they are over 10 to 15 years…
An Addendum can have many pages and the items on it can be endless. Each scenario is different and it is always safe to have more than less when it comes to your protection on contracts.
If you are buying for the first time, make sure you read up on our post here: A guide for first time buyers!