Conditions to Consider & Buyer Due Diligence
As part of our commitment to ensuring a smooth and secure home-buying journey, we’ve compiled an overview of some crucial areas for your consideration.
Recommendations for Buyer Protection (Conditions in Offers)
As your real estate Broker and Brokerage, we strongly recommend taking certain steps to protect your interests when purchasing property. Key actions include obtaining a mortgage pre-approval before initiating your property search and submitting your offer based on the necessary conditions, such as obtaining firm financing approval, obtaining an inspection on the property by a certified inspector, obtaining a status certificate (if you’re buying a condo), and selling your property, if necessary.
Also, we advise seeking professional advice from specialists such as lawyers, tax consultants, land surveyors, and home inspectors before signing any offer or Purchase and Sale Agreement. Please note that our advice and recommendations are not substitutes for specialized legal, tax, structural, property boundary, or environmental advice.
Writing Offers with No Conditions
Submitting an unconditional offer carries certain risks. If a buyer fails to close the deal on the property by the agreed date, the seller may be entitled to keep the deposit as liquidated damages. Beyond this, the buyer may also face legal action for breach of contract.
It’s important that you review the purchase agreement thoroughly before submitting an unconditional offer. We emphasize the importance of including conditions in offers for your protection. If you choose to exclude conditions, it is at your own discretion and risk.
Offer Price & Offer Details
While we will provide professional guidance, the final decisions regarding the offer or lease price on any Agreement rest entirely with you, you are also responsible for any claims or losses arising from your pricing or offer decisions.
Material Latent Defects & Disclosures
As a buyer, it’s important to understand the differences between patent and latent defects. Patent defects, which are discoverable through a reasonable inspection, are the buyer’s responsibility under the principle of caveat emptor, or “buyer beware.”
However, sellers are required to disclose material latent defects—those that are hidden and render the home uninhabitable or dangerous, provided the seller is aware of them. These defects are those that a reasonably thorough inspection could not discover before completing the purchase.
Lastly, information such as suicides, criminal activity, stigmas, and murders is not required to be disclosed unless explicitly requested by you. If you wish to be informed about these matters, please let us know in writing for each property of interest.
We believe that an informed buyer is a confident buyer. If you have any questions about these topics or any other aspect of your home-buying journey, please don’t hesitate to reach out to us. We’re here to help you make the best decision possible.