Congratulations! Your property is under contract! But it’s not sold yet.
Yay! You have an accepted offer on your home! It’s a great feeling! You may be wanting to start packing and let everyone know that you just bought a house and how exciting it is, but just hold on…your house isn’t sold just yet.
If you’re a seller
Your home is under contract, which means it’s conditionally sold. The Buyers have the right to complete their conditions within the agreed date (conditions date) before we consider this property to be FIRM.
If you’re a buyer
This is the time where you will complete all your listed conditions and review all documents sent by the sellers agent. You will confirm, during this time, that you are satisfied with your conditions. After you have past your Conditions date, the house will be considered FIRM.
This can be a very stressful time for a Buyer. You will be paying for costs associated with your various conditions (such as inspection costs, sewer line scopes, lawyer review costs, etc) without knowing if you will be keeping the home. This is the reason for conditions however, keep in mind. Yes, you will put out hundreds of dollars in potential costs for a home you may walk away from, but not doing these tests could cost you thousands. It’s better to be prepared and your Agent will help you decide what costs are best to endure.
What happens if a Buyer gives notice of dissatisfaction?
If the Buyer gives ‘notice of dissatisfaction’ regarding one of their conditions, it will allow either the Seller or the Buyer to walk away, or re-negotiate to solve the issue.
For example: if the Buyer discovers in the inspection that the roof needs to be re-shingled. Both parities can walk away from the deal, or it can be negotiated to be fixed prior to moving in, or have money reduced from the agreed sale price to fix the issue after closing.
Once firm, we can then place the SOLD sign on the property and there’s no going back. Then you can celebrate!