Subject Removal Explained

Overview

Subject removal is a legally binding step where buyers officially commit to the purchase by waiving their contractual conditions. Subject removal is a pivotal moment—one that finalizes your agreement and activates your deposit obligation. Knowing the risks and deadlines involved is key to avoiding costly mistakes.

What Are Subjects?

In a BC real estate offer, ''subjects'' are conditions that must be satisfied before the sale becomes firm. Common examples include:

• Financing approval
• Home inspection
• Strata document review
• Insurance availability
• Sale of buyer’s existing home

The Subject Removal Period

This timeframe, typically 7 days, begins once the offer is accepted. During this window, buyers perform due diligence. This includes:

• Final mortgage approval (based on the specific property)
• Reviewing strata documents and other related documents
• Hiring a home inspector
• Confirming insurability

Stay organized—missing the deadline will make the contract void.

How to Remove Subjects

Once you're satisfied with all conditions, your REALTOR® will prepare a subject removal addendum. After signing, the deal is firm, and your deposit is payable as outlined in the contract (often within 24 hours).

Can I Back Out After Subject Removal?

In most cases, no. Subject removal legally commits you to the purchase. If you walk away after this point, you could lose your deposit and face legal action from the seller. Always be 100% confident before signing off.

Tips for Smooth Subject Removal

• Line up your mortgage pre-approval early
• Hire an experienced inspector with local knowledge
• Ask your REALTOR® to flag red flags in strata docs
• Build in realistic timelines—don’t rush

FAQs

Q: Is subject removal the same as closing?
A: No. Subject removal is when the deal becomes firm. Closing happens later—often weeks after—when the property officially changes hands.

Q: What happens if I can't remove subjects in time?
A: You may ask the seller for an extension. If denied, the deal could collapse, and the home may go back on the market.

Need personalised advice? Reach out any time.

This guide provides general information only and may not reflect the latest regulations or market conditions. It is not legal or financial advice. Always verify details and consult qualified real-estate, mortgage, and legal professionals before making decisions.