Your offer was accepted - what’s next?

Your offer was accepted - what’s next?

Your offer was accepted – congratulations! After you’re done with your happy dance (and possibly your panic attack) it’s time to get down to business. Here are a few things you need to know.

How you proceed depends on whether your offer was firm or conditional. A firm offer means you’re legally prepared to purchase the condo without any conditions. In a seller’s market, like the one we’re in now, your chances of having your offer accepted are higher if you go in firm – especially if you’re in a multiple offer situation.

If the seller accepts your conditional offer, you have a few additional steps. In this scenario, the seller has agreed to sell based on you or them fulfilling certain conditions. Putting conditions into your offer is about protecting yourself, but it’s not always possible.

To ensure everything is signed, sealed and delivered on a conditional offer, your agent and real estate lawyer will ensure both you and the seller are fulfilling your end of the bargain.

What kind of conditions might come up? Let’s take a closer look.

Financing

We recommend meeting with a mortgage broker or lender to get pre-approval for a mortgage BEFORE you even start looking. That way you'll know exactly what you can afford, and you won’t have to go with a condition.

What happens if you don't have pre-approval (or you’re not approved for a high enough amount) but your heart is set on an amazing place?

  • You can adjust your financing or try another lender. Or you could try borrowing from family or friends to get a larger down payment.

  • Be careful about waiving your financing conditions – if you don’t get financing, you could lose your deposit or potentially get sued by the seller. In a hot market, where firm offers with no conditions tend to be the winners, you’ll need to work closely with your agent and lawyer to weigh the risks.

  • Also, make sure all your paperwork and the broker’s version of the MLS listing get sent to your mortgage broker so you can get firm approval on the property.

Review of status certificate

These days, it’s common for the sellers to have the status certificate available for you to review before you make an offer. But if they don’t, having a status certificate condition gives you the chance to have your lawyer review and interpret legal documents before proceeding with a firm deal.

A status certificate is a snapshot of the financial and physical well-being of the condo building, and it includes condo rules and by-laws, and info on utilities, the management contract and any lawsuits past and pending involving the condominium corporation.

Your lawyer will have a certain number of days to review and report back to you on any red flags, and confer with you on whether you should proceed with the purchase.

Inspection

An inspection condition lets you hire a professional home inspector to investigate the unit and common elements to see if there are any issues. Most condo buyers don’t make their offers conditional on inspection: any structural issues the building might have should be in the status certificate. But sometimes an inspection is warranted – your agent will help you decide on the best course of action.

Looking for more info on buying your first condo?

Check out our First-time buyers hub for help with everything from starting your search to closing.

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