A conditional offer (often called a 'subject offer') is a Contract of Purchase and Sale in British Columbia where the buyer's obligation to complete the purchase depends on one or more conditions being satisfied by a specified date. Common conditions include subject to financing, home inspection, strata document review, sale of the buyer's existing property, or obtaining satisfactory insurance. The deal is not firm and binding until all subjects are formally removed in writing by the subject removal date; if a subject is not satisfied, the buyer can typically walk away and recover their deposit. Verify the specific terms and legal effect of any condition clause with a BC lawyer or notary before signing.

Yes, a conditional offer is a legally binding contract once both parties sign, but it is 'conditional' — meaning the buyer's obligation to complete depends on the specified conditions being satisfied. If the conditions are not satisfied or waived by the subject removal date, the buyer may rescind the contract (subject to the exact wording of the conditions) and typically recover the deposit. Until all subjects are removed in writing, the seller generally remains free to market the property and accept backup offers, unless the contract expressly prohibits it. Verify the enforceability and obligations under your specific conditional offer with a BC lawyer or notary.

If the buyer does not provide written notice removing (waiving) the subjects by the subject removal date specified in the contract, the buyer is typically entitled to rescind the contract and recover the deposit, depending on the exact wording of the condition clause. Some condition clauses automatically terminate the contract if subjects are not removed; others require the buyer to give written notice of rescission. The seller may then be free to accept other offers. Verify the exact effect of your subject clause and the required notice process with a BC lawyer or notary before the deadline.

Yes, in most cases a BC seller can continue to market the property and accept backup offers while a conditional (subject) offer is in place, unless the contract expressly restricts this. Some conditional offers include a 'no-shop' or exclusivity clause prohibiting the seller from accepting competing offers during the subject period, but this is not standard. If the seller receives a better offer, the seller typically cannot force the first buyer to remove subjects early unless there is a 'bump clause' or '72-hour clause' (less common in BC). Verify the terms of your specific contract and any exclusivity or bump provisions with a BC lawyer or notary.

The most common conditions in BC residential contracts of purchase and sale include: subject to the buyer arranging satisfactory financing, subject to a satisfactory home or property inspection, subject to review and approval of strata documents (for strata properties under the Strata Property Act, SBC 1998, c. 43), subject to the sale of the buyer's existing property, and subject to the buyer obtaining satisfactory property insurance. The exact wording, scope, and deadlines for each condition vary by contract. Verify the suitability and enforceability of any condition clause with a BC lawyer or notary before including it in your offer.

Yes, conditional offers in BC typically require an initial deposit (often held in trust by the listing brokerage or buyer's brokerage, subject to the Real Estate Services Act, SBC 2004, c. 42, and BCFSA Rules). If the buyer satisfies or waives all subjects and the deal becomes firm ('subject-free'), the deposit is generally non-refundable and applied toward the purchase price at completion. If the buyer properly rescinds the contract because a subject is not satisfied (and follows the contract's notice requirements), the deposit is typically returned to the buyer in full. Verify the deposit terms, trust account rules, and your rights to recover or forfeit the deposit with a BC lawyer, notary, or your licensed real estate professional.

To remove subjects (make the offer 'subject-free' and firm), the buyer must deliver written notice to the seller (or the seller's real estate licensee) on or before the subject removal date and time specified in the contract. The notice must clearly state that the buyer waives or removes the specified conditions; licensed real estate professionals in BC typically use a standard 'Subject Removal Form' to document this step. Once subjects are removed in writing, the contract becomes unconditional and binding, and the buyer generally cannot walk away without forfeiting the deposit and facing potential legal action for breach. Verify the exact notice requirements and timing with your BC licensed real estate professional, lawyer, or notary before the deadline.

Yes, a buyer in BC may remove (waive) one or more subjects while keeping others in place, provided the buyer gives clear written notice specifying which conditions are being removed and which remain. For example, a buyer might remove the financing subject but keep the home inspection subject until a later date within the subject period. The contract remains conditional (not firm) until all subjects are removed. Verify the process for partial subject removal and ensure clear written documentation with your BC licensed real estate professional, lawyer, or notary.

A 'subject to financing' condition makes the buyer's obligation to complete the purchase conditional on the buyer obtaining mortgage financing on terms satisfactory to the buyer (or, in some clauses, on specified minimum terms such as interest rate or amortization). The buyer must make reasonable, good-faith efforts to obtain financing and, if financing cannot be arranged, may rescind the contract and recover the deposit, subject to the exact wording of the clause. Some financing conditions require objective criteria ('financing at prime + 1% or better'), while others are subjective ('financing satisfactory to the buyer'); the legal standard and burden of proof differ. Verify the wording, your obligations, and the legal effect of your financing condition with a BC lawyer or notary before signing or rescinding.

Yes. Key risks include: (1) the seller may continue marketing the property and accept a backup offer (or a competing subject-free offer), potentially pressuring the buyer to remove subjects prematurely; (2) if the buyer removes subjects and then cannot complete the purchase, the buyer forfeits the deposit and may be sued for damages; (3) vague or poorly drafted subject clauses may be unenforceable or lead to disputes about whether a condition was satisfied; and (4) the buyer must meet strict deadlines and written notice requirements or risk losing deposit or legal rights. Licensed real estate professionals in BC are regulated under the Real Estate Services Act, SBC 2004, c. 42, and must act in the client's best interests, but buyers should independently verify contract terms and legal risks with a BC lawyer or notary before signing or removing subjects.