Conditions

Good Faith and Responsibility for Conditions

Under the updated contract, both the seller and the buyer agree to:

• act reasonably and in good faith in trying to satisfy their own conditions

• make reasonable efforts to fulfill those conditions

• pay for any costs related to their own conditions
  
  

This means:

• buyers must genuinely pursue financing, inspections, or document reviews they have made the contract subject to

• sellers must reasonably cooperate where required (for example, providing access for inspections or appraisals)
  
  

Conditions are not placeholders or negotiating tools — they are legal obligations.

Buyer’s Conditions – What They Protect

Buyer’s conditions exist for the buyer’s benefit, but only if they are properly managed.

Financing

The financing condition protects the buyer if they are unable to secure acceptable financing by the Condition Day.

Key risks to explain to buyers:

• “Pre-approval” does not mean funds are guaranteed

• Appraisals can fail late in the process

• Lender conditions may still exist
  
  

Before removing a financing condition, buyers must be confident all lender requirements are satisfied.

If a buyer chooses to proceed without a financing condition while still requiring a mortgage, this risk must be clearly explained and documented.

Property Inspection

An inspection condition allows the buyer to confirm the physical condition of the property.

Skipping an inspection:

• transfers risk entirely to the buyer

• may limit remedies after possession
  
  

If a buyer declines an inspection, the importance of that decision must be clearly explained and acknowledged in writing.

Sale of Buyer’s Property

This condition ties the purchase to the successful sale of the buyer’s existing home.

Important realities:

• the seller can continue to market the property

• the seller may accept another offer

• the buyer may be forced to remove all conditions on short notice
  
  

This condition can create intense pressure and must be discussed carefully before acceptance.

Additional Buyer Conditions

Any additional condition must be tracked with the same care as the standard ones.

A common risk:

• conditions are added, then forgotten

• no notice is delivered by the Condition Day

• the contract collapses automatically
  
  

Every condition needs:

• a clear purpose

• a diarized deadline

• a plan for notice delivery
  
  

Seller’s Conditions – Less Common, Same Risk

Seller’s conditions exist for the seller’s benefit, but they operate the same way.

Even though seller conditions are less common, the risk is identical:

• if the condition is not dealt with by the Condition Day

• and no notice is delivered

• the contract can end automatically
  
  

Assumptions are dangerous. Seller conditions must be actively managed and cleared in writing.

Condition Notices – How Conditions Are Actually Enforced

Conditions do not resolve themselves.
They are enforced only through written notices, delivered properly and on time.

If the correct notice is not given:

• a condition is not waived

• a condition is not satisfied

• and the contract may terminate automatically
  
  

Emails, texts, or verbal confirmation do not replace formal notice.

Waiver or Satisfaction of Conditions

When a party is ready to proceed:

• a formal written notice must be delivered

• it must be delivered on or before the Condition Day and time
  
  

Without this notice, the contract does not become firm — even if everyone intended it to.

Non-Waiver / Non-Satisfaction of Conditions

If a party decides not to proceed:

• a written notice must be delivered

• this formally ends the contract

• it provides clarity for deposits and next steps
  
  

Silence is not protection.

Buyer Void and Seller Void Rights

Some failures trigger specific void rights.

Examples:

• buyer failure to meet financing or disclosure-related obligations

• buyer failure to pay a deposit on time
  
  

These rights must be exercised by notice and within the allowed timeframe.
Accepting late performance without notice may eliminate the right to void.

Sale of Buyer’s Property Notices

Sale-of-property conditions include special notice rules.

When a seller accepts another offer:

• a formal notice is delivered

• a strict timeline is triggered

• the buyer must remove all conditions or allow the contract to end
  
  

This is one of the most time-sensitive notice situations in the contract.

REALTOR® Responsibility – This Is the Risk Zone

Conditions are one of the highest-risk areas in a transaction.

REALTORS® must:

• diarize every Condition Day and time

• understand which notice applies to which situation

• ensure notices are delivered correctly and on time

• escalate issues early

• never assume intentions replace written notice
  
  

A condition without a notice is a liability.

Most collapsed deals, deposit disputes, and complaints trace back to poor condition management — not bad intentions.