Unless you are selling a property in Toronto the chances are that there will be conditions attached to the offer. Now there is no problems with conditions accompanying an offer, the problem is with the wording in those conditions and how they can leave you as a seller vulnerable.
The two most common conditions you will see are based upon home inspection and financing and the wording in those conditions allow the buyer “sole and absolute discretion” as to whether or not those conditions are satisfied. Perfect for the buyer… HORRIBLE for the seller.
Think about it, you are putting a lot of faith into a purchaser by selling your property conditionally. In the conditional period, very few (if any) realtors will show your listing and in the event that the buyer backs out, it will likely take a week for viewing activity to pick up again and EVERYONE will assume it was because of a poor home inspection.
There are a few ways to protect yourself against this clause and ensure that you aren’t letting buyers gamble with your house:
1) Scratch out the sole and absolute discretion sentence in the agreement of purchase and sale and fill in your terms.
2) Create a schedule B which is to be attached with all offers that state the purchaser will have to show the inspection report to the seller and highlight the areas of concern. Also, have them verify that financing has not been approved.
Now most agents and purchasers will be apprehensive to do this but I would be much more concerned with not having some form of protection. You are putting a lot of trust into the buyer and they should give you the courtesy of knowing that their clients were not just speculating on your property.
Don’t leave yourself vulnerable and make sure you protect yourself and have the best opportunity to sell your house to the best possible candidate!