Your offer was accepted - what’s next?

Your offer was accepted - what’s next?

Your offer was accepted - congratulations! Once you’ve had a chance to celebrate, it’s time to get down to business. 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, so all you have to do is wait and see if your offer has been accepted.

If you have a conditional offer, and the seller accepts it (when there are multiple offers, chances are they’ll go with the firm offers first) you have a few additional steps. In this scenario, the seller has agreed to sell based on the seller and/or buyer fulfilling certain conditions (like the buyer getting financing, the unit passing a home inspection, the buyer's current home being sold in a specific timeframe). 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, that's where your agent and real estate lawyer come in. They will ensure that both you and the seller are fulfilling your end of the bargain on certain conditions. So 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 won't have to hold up the process with a condition that could lose you the place – and you'll know exactly what you can afford so you don't end up falling in love with a place you can't buy.

So 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 condo?

  • Don’t panic – 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

A status certificate condition gives you a 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.

Upon receipt of the status certificate, 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 should be in the status certificate – and conditions might take you out of the running for a sale. But sometimes an inspection is warranted: more on that here.

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