Transcript of Video Blog:
Hi, everybody. It’s Rowan Smith from the Mortgage Centre. I want to talk today about subjects. Specifically, what is a subject in a contract?
So the way I like to describe it is a subject is essentially a large ‘if’ statement. So if you’re writing an offer, say $500,000 subject to you getting financing, subject to a building inspection.
So when someone says, ‘what subjects have you put on the offer?’ typically it’s going to be your financing subject, it’s going to be your subject for building inspection, it’s going to be subject for anything else that you want, verified or looked at or confirmed prior to your offer being binding. Until you as the buyer remover those subjects, the deal is not binding.
So when you are trying to make your decision as to what subjects you need, you’re going to want to consult your realtor. You’re also going to want to speak to me before you do it to know what we’re going to require for financing. That will guide us in how much time, we are going to need for that subject removal, for that deadline.
Typically I like to see five business days. Not always possible, but that’s the ideal number. A little bit more certainly doesn’t help and it will take a lot of pressure off.
So when you are wondering what a subject is, it’s the conditions to your offer.
For the Mortgage Centre, I’m Rowan Smith.