Subject Conditions in BC Real Estate: Complete Guide for Buyers and Realtors
Subject conditions are the contingencies attached to a purchase contract that must be satisfied before a deal becomes firm. Understanding how they work — and when to use them — is essential for both buyers protecting their interests and realtors managing their clients through the critical period between acceptance and unconditional sale.
What are subject conditions?
A subject condition (often called “a subject” or “a condition”) is a written clause in the Contract of Purchase and Sale that gives the buyer the right to void the contract if a specific condition is not met by a stated deadline. Subjects are not a request — they are enforceable legal terms negotiated in the offer.
When a seller accepts an offer with subjects, the property is effectively “on hold.” The seller cannot proceed with other offers unless the subjects collapse or a 72-hour clause is triggered. The buyer has until the removal deadline to either remove all subjects (making the sale firm and unconditional) or walk away with their deposit returned.
Once subjects are removed in writing, the sale is unconditional. Neither party can withdraw without legal consequences.
Common subject conditions in BC
Subject to financing
5–7 business daysThe most common subject. Protects the buyer if their lender declines the property — not the borrower. Even pre-approved buyers need this because lenders assess the property separately: appraisal, strata status certificate, rental restrictions, and depreciation report. A low appraisal, condo hotel restrictions, or high-risk strata can cause financing to be declined.
Ensure your buyer has a firm commitment from their lender — not just verbal approval — before removing this subject.
Subject to home inspection
3–5 business daysGives the buyer the right to have a licensed home inspector examine the property and review the report. The buyer can void the contract if inspection reveals material defects. This is not a guarantee of a perfect property — it is protection against significant, undisclosed problems that affect safety or value.
Book the inspector within 24 hours of acceptance. Good inspectors book quickly in active markets.
Subject to strata document review
5–7 business daysRequired for strata properties (condos, townhouses). Strata documents include: Form B (financial status), minutes (2 years), depreciation report, strata rules and bylaws, AGM/SGM records, and any pending special levies. Buyers looking for red flags: deferred maintenance, pending special levies, high litigation, rental restrictions, pet restrictions, underfunded contingency reserve.
Use a strata document review service or lawyer for large portfolios. Minutes reveal what financial statements do not.
Subject to review of title
3–5 business daysAllows a lawyer or notary to review the property title for charges, easements, rights-of-way, restrictive covenants, and other encumbrances. Most residential titles are clean, but rural properties, older homes, and properties near infrastructure frequently have title issues that affect use or value.
Title review is often bundled with the lawyer's closing work rather than a separate subject period.
Subject to sale of buyer's property
Varies (often 30–60 days)Protects buyers who need proceeds from their current home to finance the new purchase. Sellers typically prefer not to accept this subject because it can take months and leaves their property off the market. In a seller's market, offers with this subject are often declined or result in a lower accepted price.
If your buyer has a sale-of-property subject, discuss timing carefully. Consider whether bridge financing could eliminate this subject entirely.
The subject period: day by day
Most subject periods run 7 business days from acceptance. Here is how a typical subject period unfolds for a buyer with financing, inspection, and strata document subjects:
Buyer agent books home inspector, buyer contacts lender with accepted offer, seller's agent orders Form B + strata documents.
Lender orders independent appraisal of the property. Buyer provides any additional documents requested (employment confirmation, asset statements).
Buyer attends inspection with inspector (strongly recommended). Inspector provides written report within 24 hours. Buyer reviews report and decides whether to proceed or negotiate credits/repairs.
Buyer reviews Form B, minutes, depreciation report, and bylaws. Look for: pending special levies, deferred maintenance, rental/pet restrictions, and litigation.
Lender issues formal commitment letter once appraisal is complete. Buyer confirms all financing conditions are met.
Buyer removes all subjects in writing (Subject Removal form) or notifies seller agent they cannot remove. All removed = deal is firm and unconditional. Not removed = contract collapses, deposit returned.
Subject-free offers: when and how
A subject-free (clean) offer has no conditions — the buyer commits unconditionally at the accepted price. Subject-free offers are common in competitive markets and multiple-offer situations where sellers choose the cleanest deal.
When subject-free is appropriate
- • Buyer has firm financing (not just pre-approval)
- • Pre-listing inspection is available and reviewed
- • Strata documents reviewed before offer
- • Buyer can absorb any reasonable repair costs
- • Multiple offers — seller will choose cleanest deal
Risks of subject-free offers
- • No exit if inspection reveals major issues
- • Financing can still fall through (rare but possible)
- • Strata special levies unknown until documents arrive
- • Walking away = potential lawsuit for seller damages
- • Emotional pressure can override rational assessment
How realtors protect clients in subject-free offers
The safest approach is to do the due diligence before the offer, not after. Request pre-listing inspection from the listing agent. Review strata documents before making the offer if available. Arrange a bank appraisal independently if possible. Drive by the property multiple times and walk the neighbourhood.
If none of this is possible, discuss the risk explicitly with your client in writing before submitting a subject-free offer. Document that they understood and accepted the risk. This protects both the client and the agent.
The 72-hour clause
A 72-hour clause (also called a “first right of refusal” or “escape clause”) allows a seller who has accepted a subject-to offer to continue marketing their property and present subsequent offers. If the seller receives an acceptable subsequent offer, they can notify the primary buyer, who then has 72 hours (or another negotiated period) to either:
Waive all subjects within 72 hours — deal becomes firm, backup offer is rejected.
Decline to remove subjects — contract collapses, deposit returned, seller proceeds with backup.
For buyers: the 72-hour clause forces a rushed decision during the subject period. If you are not ready to go firm, you may lose the property to a backup buyer. Discuss this possibility with your realtor before accepting an offer that includes a 72-hour clause.
Managing the subject period: realtor workflow
The subject period is the most time-sensitive phase of a transaction. A missed deadline, lost document, or unconfirmed inspection can kill a deal. Here is the workflow for managing it effectively:
| Task | Who | Timing |
|---|---|---|
| Book home inspector | Buyer agent | Within 2 hrs of acceptance |
| Notify lender with accepted offer + MLS # | Buyer | Day 0 |
| Order strata documents (Form B + minutes) | Listing agent | Day 0 |
| Add subject removal deadline to CRM calendar | Buyer agent | Day 0 |
| Attend home inspection | Buyer + buyer agent | Day 2–3 |
| Review inspection report and advise client | Buyer agent | Day 3 |
| Review strata documents with client | Buyer agent | Day 3–5 |
| Confirm financing commitment in writing | Buyer + lender | Day 5–6 |
| Send Subject Removal form if proceeding | Buyer agent | By deadline |
| Notify all parties of subject collapse (if not removing) | Buyer agent | Before deadline |
Frequently asked questions
What is the most common subject condition in BC real estate?
Subject to financing is the most common subject condition in BC. It allows the buyer to secure a mortgage approval — not just a pre-approval — on the specific property being purchased. Lenders assess the property itself (appraisal, strata documents, rental restrictions) separately from the borrower's creditworthiness. Subject to financing protects buyers from being locked into a contract if their lender declines the property, even when they are personally qualified to borrow.
Can a seller accept another offer while there are subjects on a contract?
Yes. Sellers can accept backup offers from other buyers while a subject-to contract is active. The seller cannot proceed with the backup offer until the first contract collapses — either because subjects are not removed, or by mutual agreement. In a competitive market, sellers sometimes include a '72-hour clause' (also called a first right of refusal) that allows them to present other offers to the primary buyer, requiring them to waive subjects or walk away within 72 hours.
What happens if a buyer cannot remove subjects?
If a buyer cannot satisfy a subject condition by the removal deadline, the contract becomes voidable. The buyer can choose not to remove subjects, which collapses the deal and returns the deposit. The buyer must have a genuine reason tied to the specific subject (financing declined, unacceptable inspection results, material defect in strata documents). Attempting to walk away by inventing a failed subject condition constitutes breach of contract and the seller may seek legal remedies.
What is a subject-free offer and when is it appropriate?
A subject-free (clean) offer has no conditions attached — the buyer commits to purchase unconditionally at the accepted price. Subject-free offers are common in competitive multiple-offer situations where the seller will likely choose the cleanest offer over the highest price. They are appropriate when the buyer has secured firm financing, already reviewed a pre-listing inspection, and is confident in the property. Subject-free offers carry significant risk — a buyer who walks away after acceptance without a valid subject condition faces a lawsuit for the seller's damages.
How long is the typical subject period in BC?
The typical subject period in BC is 7 business days from acceptance for residential resale properties. Common variations: financing subject alone (5–7 business days), home inspection (3–5 business days), strata document review (5–7 business days). The parties can negotiate any timeline, but lenders typically require a minimum of 5–7 business days to complete an appraisal and issue a firm commitment. Subject removal deadlines are negotiated in the offer — your realtor can request an extension from the seller before the deadline passes if you need more time.
Track subjects, deadlines, and documents in one place.
Magnate360 manages your showing workflow, subject removal deadlines, and client communication — so nothing falls through the cracks during the subject period.