Subject Free Offers are Powerful and Effective, but in Scary in the Wrong Hands!
With the resurgence of the Vancouver real estate market, Subject Free Offers are making a comeback along with Multiple Offer Situations. The downside is that without preparation and professional advice, mishandled Subject Free offers can quickly result in lawyers getting involved making it expensive and painful for all.
What is a Subject Free Offer?
A Subject Free Offer is an offer prepared by the Buyer that does not allow the Buyer to walk away for ANY reason if the Seller accepts.
If the Buyer cannot get a mortgage on the property, TOO BAD the Buyer MUST complete the deal.
If the property turns out to be a Leaky Condo or contains Asbestos TOO BAD the Buyer MUST complete the deal.
Why Use Subject Free Offers?
Competition! In a highly competitive Multiple Offer Situation presenting a Subject Free Offer makes a Buyers offer MUCH more attractive to a seller. Subject Free Offers are a sure thing, the Buyer cannot walk away. Offers with Subjects on them often take up to 7 days to become firm and binding and 15-30% of Subject offers fall apart.
How to Safely Use Subject Free Offers!
1) Hire a qualified Realtor to help you with your due diligence and to prepare the offer for you. If you have questions your Realtor can’t answer CALL A LAWYER!
2) Do you homework! Make sure you get something in writing from your bank or lender confirming you can get financing on the property you want to submit a Subject Free offer on. Make sure you get your building inspection done before you submit your offer. Make sure you have gone over all the documentation associated with the property and your Lawyer and your Realtor has answered all your questions, so that everything is 110% crystal clear to you!
3) When in doubt don’t submit a Subject Free Offer. Remember! You can’t back out!
Buying your first home in Vancouver? Check out my videos for First Home Buyers in Vancouver!
Drop me a line if you have any questions and I’d love to see your thoughts and questions in the form of a comment below!