There will likely have been written into the contract a number of clauses that are commonly referred to in the industry as “Subjects”. These are included by your REALTOR® for your protection and are conditions that must be met prior to the offer becoming a binding Contract of Purchase and Sale on both you as the Buyer and the Seller.
Your offer may be subject to:
- arranging financing. Even with pre-approval your financial institution will need to give you the final green light on that specific property.
- having a home inspection done to insure the house is in good shape and there are no surprises.
- arranging insurance for the home
- having a water quality/quantity test done if there is a well
…And the list goes on. These clauses must be satisfied and once you’ve done your due dilligence on each condition and are happy with all outcomes you fill out what is called a Subject Removal form. Once all the subjects are removed from the contract it becomes “firm and binding on all parties” and that’s when the “SOLD” sign goes up.
If you did not put your deposit monies in trust at the time of acceptance it is likely due now. A deposit is proof of your intention to purchase the home and is held in trust until completion when it is applied to your purchase price.