CHAPTER 8 Conditional Period t eriod to SOLD
Meeting Conditions Once an offer is accepted by both parties the buyer starts meeting the conditions providing a deposit. This money is deposited in the trust account of the listing brokerage and is protected during the conditional period, normally ten business days. The conditions are finance, legal review, insurance commitment, water quality or flow test, sewage/septic disposal and radon gas. If during the inspection period any of the following conditions cannot be met the buyer is at liberty to terminate and their deposit returned in full. Unconditional or ‘Firm’ Agreement This is the period between the end of satisfying the conditions and the closing date. It is very important during this period not to make any major decisions that may impact you financially such as new job or purchases on credit. The lender can withdraw the approval at any time if an additional credit check is completed just prior to the closing. If you fail to complete the
agreement once it is in the ‘firm stage’ you may lose your deposit and in breach of contract which opens you up to be sued in a court of law.
Insurance Confirmation Confirm with your insurance company prior to the close to make sure a policy for insurance, specifically fire insurance, is in place on your new home. Sign any policy documents necessary and set up pre- authorized payments. If fire insurance is not in place on the day of closing and confirmation sent to the lawyer, 65
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