What are conditions in a real estate purchase contract?
Conditions are requirements written into an accepted purchase contract that must be satisfied or waived within an agreed period. Common conditions in Alberta include satisfactory financing, a home inspection, and condominium document review. Depending on the circumstances, buyers may also request a condition relating to the sale of their current home. Conditions provide important opportunities to complete due diligence, but they also carry contractual responsibilities and deadlines. I'll explain the options and help structure an offer that reflects your situation and the property's circumstances.

Purchase Contract Conditions in Brief


  • Conditions give buyers time to complete due diligence before the sale becomes firm.
  • Common conditions include financing, inspection, and document review.
  • Each condition has a deadline written into the contract.
  • Fewer conditions can make an offer stronger, but they also increase risk.

Common Conditions in Alberta


  • Financing: time to secure final mortgage approval
  • Home inspection: time to inspect the property
  • Condominium documents: time to review the corporation's records
  • Real Property Report: time to review the survey and compliance
  • Sale of buyer's property: time to sell your current home

How Conditions Are Removed


Buyers must provide written notice that each condition has been satisfied or waived before the deadline. If notice isn't given, the contract typically ends according to its terms and the deposit is usually returned.


Balancing Protection and Competitiveness


In a busy market, sellers may prefer offers with fewer conditions or shorter deadlines. Some buyers complete an inspection before making an offer to strengthen their position. However, waiving conditions means taking on more risk, so it's important to understand the trade-offs.


Sale of Property Conditions


If your offer depends on selling your current home, sellers may accept it with a clause allowing them to keep marketing their property. If another offer comes in, you may be given a short window to remove your condition or step aside.


Structuring Your Offer


I'll help you decide which conditions to include and how long each should last, so your offer is both protective and competitive.