So basically, what happens is when my clients are ready to make an offer on a home, they often ask me, “Pete, what conditions should we include in our Promise to Purchase?” This is one of the most important questions you can ask when buying a property in Quebec. Conditions act as safety nets that protect you during what might be the biggest financial transaction of your life.
In Quebec’s real estate market, a Promise to Purchase becomes a legally binding contract once it’s accepted by the seller. But conditions give you an “out” if certain criteria aren’t met. They essentially allow you to walk away from the deal without penalties if something unexpected comes up during your due diligence period.
The home inspection condition is probably the most common one I recommend to my buyers. When we’re touring homes, I’m always on the lookout for potential issues. As I tell my clients, there are three main things to watch for when visiting a property:
Including an inspection condition gives you the opportunity to bring in a professional to thoroughly examine the property and identify any issues that might not be visible during a typical showing.
Even if you’ve been pre-approved for a mortgage, I always recommend including a financing condition in your Promise to Purchase. Why? Because pre-approval doesn’t guarantee final approval. The bank will want to assess the specific property you’re buying to ensure it’s worth the loan amount.
The financing condition typically gives you 5-7 days to secure final approval from your lender. This protects you from being legally obligated to purchase a home you can’t actually get financing for.
If you already own a home and need to sell it to purchase your new one, you’ll want to include a condition related to the sale of your current property. This condition ensures you won’t be stuck owning two properties if your current home doesn’t sell in time.
In today’s Quebec market where inventory is tight, this condition might make your offer less competitive, but it’s often necessary for financial protection. As I tell my clients, sometimes accepting an offer in second position can be beneficial in these situations.
The number and type of conditions you include will often depend on the current market conditions. In a seller’s market with multiple offers, you might consider limiting your conditions to strengthen your position. In a buyer’s market, you can afford to be more protective.
In today’s Quebec market, it’s important to be strategic. As I often tell my clients, “The market always dictates the value.” You can price your home however you want, but you’ll only get offers when you’re within striking distance of market value. The same principle applies to conditions – they need to be reasonable given the current market dynamics.
One document that can help you determine which conditions are necessary is the Seller’s Declaration. This mandatory form completed by the owner outlines everything they know about the home – from basic details like the year it was built to any issues they’ve observed while living there.
The Seller’s Declaration can reveal important information about past water infiltration, plumbing issues, or structural concerns. Reviewing this document carefully might highlight areas that require extra attention during your inspection.
In competitive situations, sellers might accept your offer in “second position” as a backup option if the first offer falls through. This can be a good strategy in Quebec’s current market with limited inventory, but there are important considerations:
When it comes to conditions in a Promise to Purchase, the right approach depends on your specific situation and the current market conditions. The important thing is to understand what each condition means and how it protects you.
My advice is always: don’t stress, just assess. Work with your real estate broker to determine which conditions make sense for your specific situation. Having the right conditions in place gives you peace of mind and protection during what can be a stressful process.
If you have questions about conditions in a Promise to Purchase or any other real estate concerns in Quebec, don’t be shy to reach out. I’m always here to help you navigate the complexities of the real estate market.
At Peter Thompson Real Estate, we don’t just help you buy or sell property—we guide you through every step of your real estate journey with expertise and care. Our deep understanding of Quebec’s unique real estate market and legal framework ensures your transaction proceeds smoothly, with all proper conditions in place to protect your interests.
Whether you’re a first-time buyer or a seasoned investor, our approach combines professional expertise with a relaxed, personalized experience. Let’s talk about your real estate goals today!
Peter Thompson is a licensed Quebec real estate broker with extensive experience helping clients navigate the local market. For personalized advice on your real estate journey, contact Peter today.
As a graduate from Concordia University with a Bachelor’s in Honors Cell & Molecular Biology, Bonnie is equipped with analytical skills and a detail-oriented mindset. Combined with a fluency in Mandarin, in addition to French and English, she brings a unique background to the table.
Bonnie understands the importance of finding a place to call home and the impact that journey can have. Curious and compassionate at heart, she believes in fostering genuine relationships all the while achieving common goals. Whether you’re a first-time buyer, looking to sell, or interested in investing, Bonnie is here to help you navigate the real estate market with utmost professionalism and care.
Bonnie is happiest when sharing a meal with loved ones. She leads an active lifestyle, with her latest passion being yoga. She views herself as a lifelong learner, embracing every experience as a chance to grow.
Bonnie is always ready to connect over a good cup of coffee.
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