Selling a House - Subjects

Here’s where you need to pay attention.

Often times a buyer will want to add a subject to the offer. Assuming that you’ve already remembered to add the subject about having the offer approved by your lawyer (and they can state the same) here are some other types of subjects you may be requested to add.

‘Subject to Financing’

Clearly, if the owner isn’t coming with cash, they will need to have their financing approved. This is for everyone’s benefit. You do not want to have signed a deal to sell your home to someone with no money, and they should not be legally responsible for buying a home with no financing.

You cannot know for certain if the information your buyers have given you is correct. They may say their credit is good but until a bank agrees, you have no basis.

‘Subject to Inspector’s Report’

Your buyers may wish to have a third party investigate the house for structural problems or other unknown flaws. Some banks will also require a termite inspection before approving a mortgage.

‘Subject to Sale of Purchaser’s Home’ and ‘Subject to Parent’s Approval’

We will discuss the steps you should take to protect yourself from this one, but having these subjects are very risky.

Often (as stated before) parent’s will have a much different viewpoint than their children and you should probably hold off on writing the contract until all decision makers have viewed the property.

Subject to the sale of the buyer’s home is also a problem since you have no control on how long that will take.

What to Know About Your Lawyer
How Your Lawyer Can Help
The Contract
Subjects
The Escape Clause
How Long Should the Subjects Stand?
Finishing Up