The Comeback of Conditions: Protecting Your Deal in a Buyer's Market
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The Comeback of Conditions: Protecting Your Deal in a Buyer's Market
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We are talking conditions (contingencies) in Canadian real estate offers – protective clauses that allow buyers to back out of deals if certain requirements aren't met. After nearly disappearing during the pandemic housing frenzy, conditions are making a comeback as the market shifts toward buyers.
- Firm vs. Conditional Offers: A firm offer has no conditions and binds you immediately, while a conditional offer includes safety valves that let you walk away penalty-free if requirements aren't met.
- Main Condition Types: The most common buyer protections include financing (mortgage approval), home inspection, insurance, sale of existing property, assignment rights, and general due diligence.
- Market Context Matters: In buyer's markets you have leverage to include protective conditions, but in competitive seller's markets, conditions can make your offer less attractive.
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