This page covers:

1. Clause 8.1 – Reasonable Efforts, Good Faith, and Costs

2. Financing Condition

3. Property Inspection Condition

4. Condominium Document Review Condition

5. Agent Responsibilities

6. Negotiation Strategies

1. Clause 8.1 – Good Faith and Reasonable Efforts

Clause 8.1 requires both the seller and buyer to:

Act reasonably and in good faith when trying to satisfy their own conditions.
This means:

• The buyer must actually apply for financing

• The buyer must actually hire an inspector

• The seller must provide reasonable access

• The seller must provide required documents

• Neither party can intentionally delay or avoid fulfilling obligations
  
  

Each party pays for their own conditions.

• Buyers pay for inspections and lender requirements

• Sellers pay for items required under their obligations (for example, condo documents)
  
  

Conditions must include a Condition Day.
If the Condition Day is missing or unclear, the condition is not effective.

2. Financing Condition — 8.2(a)

Purpose:
To allow the buyer time to secure acceptable mortgage financing.

Key elements:

• Buyer must secure new financing

• Down payment percentage must be stated

• Terms must be satisfactory to the buyer

• Condition must have a specific Condition Day

• Seller must provide reasonable access for appraisals
  
  

Negotiating the Financing Condition

For Buyer’s Agents:

• Confirm affordability first; do not guess

• Speak with the lender before choosing a Condition Day

• Ensure the down payment amount stated is accurate

• Anticipate delays in appraisal timelines and long weekends (before removing conditions, ensure the appraisal has been completed and the lender has approved the loan based on the appraisal).

• Clarify whether lender requires condo docs (condos only)
  
  

For Listing Agents:

• Ask whether the buyer is pre-approved (not just pre-qualified)

• Ask whether the lender requires appraisal access early

• Confirm the buyer’s down payment source is realistic

• Push for a shorter but realistic Condition Day if competing offers exist
  
  

Implementing the Condition

Buyer must:

• Apply promptly

• Provide documents to their lender quickly

• Schedule appraisals immediately when needed

• Maintain communication with their agent
  
  

Seller must:

• Cooperate with appraisal access

• Respond quickly to listing agent requests
  
  

Waiver

The buyer may waive:

• Only when financing is fully approved

• Only by written notice using the proper form, available on WebForms

• Never verbally, never informally, and never after the deadline

• If you do not waive during the condition period, the deal is dead. You cannot revive a contract that  is no longer valid.
  
  

3. Property Inspection Condition — 8.2(b)

Purpose:
To allow the buyer to hire a licensed inspector and assess the physical condition of the home.

Negotiating the Inspection Condition

For Buyer’s Agents:

• Advise on the importance of licensed inspectors

• Book the inspector immediately upon acceptance

• Leave time for follow-up inspections if issues arise
  
  

For Listing Agents:

• Ask for reasonable access times

• Confirm the seller understands that inspectors will need interior and exterior access

• Clarify that this condition is buyer satisfaction, not “passing or failing”
  
  

Implementing the Condition

Buyer must:

• Hire a licensed inspector

• Attend the inspection when possible

• Follow up with specialists if needed (roofers, HVAC, plumbers)

• Provide notice of waiver or non-waiver before Condition Day
  
  

Seller must:

• Provide reasonable access

• Ensure utilities are on

• Ensure locked areas are accessible
  
  

Waiver or Non-Waiver

The buyer may:

• Waive if satisfied

• Not waive if unsatisfied

• Negotiate repairs or credits (but nothing is automatic)
  
  

If the buyer does not waive by the deadline, the contract ends.

4. Condominium Document Review Condition — 8.2(c)

This is the most complex buyer condition in the contract.

Purpose:
To allow the buyer time to thoroughly review:

• Financial health of the corporation

• Bylaws, rules, and policies

• Reserve fund study and plan

• Budgets, minutes, and insurance

• Any red flags, upcoming special assessments, or governance concerns
  
  

Seller Obligations

The seller must:

• Provide the complete condo document package

• Pay for all documents they provide

• Deliver documents before the Document Delivery Day

• Provide copies of any new communications from the corporation up to Completion Day
  
  

If the Seller Fails to Provide Documents on Time

• The buyer may choose to obtain the documents themselves

• They must give written notice before Condition Day

• The Condition Day automatically extends

• Seller must reimburse the buyer for reasonable document costs

• Buyer chooses whether reimbursement is cash or a credit on Completion Day
  
  

Negotiating the Condo Document Condition

For Buyer’s Agents:

• Ensure Condition Day allows enough time for proper review (usually 3–5 days after Document Delivery Day)

• Confirm whether your buyer will hire a condo document review specialist

• Immediately verify whether the documents delivered are complete
  
  

For Listing Agents:

• Review the document package before sending it

• Confirm copies are recent (especially reserve fund reports, budget, AGM minutes)

• Make sure the buyer receives the package early

• Encourage your seller to obtain missing documents quickly
  
  

Waiver or Non-Waiver

Buyer may:

• Waive if satisfied

• Not waive if documents reveal concerns they cannot accept

• Request further explanation from the corporation (optional, not required)
  
  

If the buyer does not waive by Condition Day (including any extensions), the contract ends.

5. Agent Responsibilities — Buyer and Seller Side

Buyer’s Agent Must:

• Confirm buyer readiness for financing

• Diarize all Condition Days and Document Delivery Days

• Book the inspection immediately

• Confirm the buyer applies for financing promptly

• Ensure condo docs are thoroughly reviewed

• Deliver waiver or non-waiver before the deadline

• Double-check time stamps on email delivery

• Keep communication clear and documented
  
  

Listing Agent Must:

• Communicate clearly with the seller about obligations

• Diarize Document Delivery Day and Condition Days

• Provide quick access for inspectors and appraisers

• Deliver complete condo document packages

• Follow Notice and Documents clause for all communications

• Confirm waivers are properly delivered and uploaded

• Advise the seller about options if issues arise
  
  

6. Negotiation Strategies

For Buyers

• Keep conditions realistic, not excessive

• Avoid overly long Condition Days that weaken the offer

• Present a clean, organized offer with timelines the seller can accept

• Communicate promptly and professionally to build trust
  
  

For Sellers

• Push for tight but fair deadlines

• Request confirmation that buyer financing is pre-approved

• Ask whether the buyer is working with a reputable lender

• Confirm the buyer will actually obtain an inspection

• Provide condo documents early and proactively

• Respond quickly to requests for access
  
  

When Multiple Offers Exist

• Shorter Condition Days may increase seller acceptance

• A pre-inspection or lender pre-approval can strengthen the offer

• Sellers should compare the quality of conditions, not just price
  
  

Key Takeaways

• Every condition must have an agreed-upon Condition Day

• Conditions are only effective when properly drafted

• Buyers must act in good faith and make real efforts

• Sellers must cooperate with access and document delivery

• Timing, communication, and diarizing are critical

• Improper handling of conditions is a leading cause of collapsed deals

• REALTORS® must follow the Notice and Documents clause exactly