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7 Must Have Real Estate Conditions

Blog by Claire LeLacheur | September 9th, 2010

When you are putting together a contract to buy a new home, there are several things that you need to have inserted into your contract to make sure your ass is covered.
Aside from the obvious things like purchase price and the address here are a list of some of the other more important things that really should be included, and if they are not, why aren’t you using a good realtor?

 1.Financing – this is the once clause that I find it very hard to counsel a Buyer to take out of the contract. This clause allows you and your realtor time to ship the paperwork off to the lender, to have an appraiser come through the property from the bank, and to forward any additional paperwork requested by the lender to the mortgage broker.

 2.Building inspection – this clause allows you to have a building inspector of your choice come through the property and take a look at the condition of the property. In some cases, when you are buying a condo, the inspector may only be able to look at the suite, or the parkade, but it is still a good idea to get one through the property, if the market allows it, for your peace of mind.

 3.PCDS – or property condition disclosure statement. This is the Sellers legal disclosure about the condition of the property. It includes questions such as , if there are any known problems with the plumbing, electrical, or if the property was ever used to grow drugs. The Seller is obligated to answer to the best of their knowledge.

 4.Title search – this document is a search done against the title of the property against any encroachments, rights of way, or anything else that may be registered on title. Usually it is just the owners that are registered there and their mortgage if any. If you are buying a condo there is numerous pages of things registered so that the city can have sidewalks, and sewage and water delivered to the property.

 5.Strata minutes – this is for people who are buying a condo. The norm is to ask for 2 years worth of minutes to be able to read through. In this 2 years worth of minutes you can get the jist of what is going in the building and how it is being looked after.

 6.Inclusions – you will have several inclusions. My general rule of thumb is, if you imagined removing the furniture, and tipped the house upside down, anything that could fall out should be an inclusion. This would include washer, dryer, dishwasher, stove, and a microwave.

 7.Closing date – generally there are three dates, the completion, adjustment and possession dates. Normally there is a gap of up to two to three days between the completion date and the possession date. The possession date and the adjustment date are always the same day.

 Depending on how complicated your contract is there could be a whole lot more terms and conditions to the contract. These are the most common conditions (sometimes called subjects) in our Vancouver real estate market. None the less, always put it in writing, and never take the Sellers word for it!

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