This page explains which conditions buyers use, what the law expects of you while they are open, and how removing them makes the purchase firm, using BCFSA's guidance.
The short version
- A subject clause sets out a condition that must be met before the sale goes through. The contract is binding from the moment it is signed.
- BCFSA lists common subjects: an inspection, a Property Disclosure Statement, financing, assuming the seller's mortgage, the sale of your current home, and a review of strata documents.
- You must use every reasonable effort to satisfy your conditions. They are not escape clauses.
- You remove subjects by written notice to the seller, and the deal becomes firm.
- A seller may add a clause letting them accept another offer unless you remove your subjects within a set time.
What a subject clause does
BCFSA describes a subject clause, also called a condition precedent, as a term setting out a condition that must be fulfilled before the sale can go through. It also stresses that the contract is legally binding as soon as both sides sign. So a condition does not suspend the contract. It sets a test that must be passed before the contract is carried out.
BCFSA advises that subject clauses must be worded carefully and precisely, that it is wise to get professional help writing them, and that it is ultimately your responsibility to make sure they mean what you want them to mean.
A subject for the sale of your present home is the one sellers resist most, because it ties their sale to yours, so expect it to weaken your offer in a competitive market. There is a balance to strike. BCFSA notes that there can be as many subject clauses as you can negotiate, but the fewer you include, the more serious you look as a buyer, because you are asking the seller to take the home off the market while you check your conditions.
The conditions buyers use most
BCFSA gives examples of what a purchase might be subject to. For a multiplex home, most buyers use three or four of them.
- A satisfactory professional building inspection.
- The seller completing a Property Disclosure Statement, as distinguished from the Property No Disclosure Statement form.
- Arranging the financing you need.
- The lender approving you to assume the seller's existing mortgage, if you plan to take it over.
- The sale of your present home.
- For a strata home, a satisfactory review of all relevant strata documents, including engineer's reports and building inspection reports, if any.
| Condition | What it checks | What to ask for |
|---|---|---|
| Financing | That your lender will lend on this home at this price | A written approval from your lender |
| Inspection | The condition of the home | A licensed inspector's written report |
| Strata documents | The strata's money, rules, repairs and disputes | Form B, bylaws, minutes, budget, financial statements, insurance summary, any depreciation or engineer's report |
| Property Disclosure Statement | What the seller says they know about the home | The completed form from the seller |
| Title review | Who owns it and what is registered against it | A title search, read by your lawyer or notary |
Conditions from BCFSA's Offers to Sellers page, read 23 October 2026. The documents to ask for are our own list.
Your duty while conditions are open
BCFSA is clear that when you add subject clauses, you are required to use every reasonable effort to see that the conditions are satisfied, and that subject clauses are not escape clauses that let you avoid your legal responsibilities under the contract.
In practice, that means applying for the mortgage promptly, booking the inspection quickly, asking for the strata documents early and reading them. A buyer who does nothing and then lets a condition lapse may be in breach of the contract.
If, after every reasonable effort, a condition cannot be met, BCFSA says the contract ends and there is no legal obligation to complete the purchase. The deposit still needs a release signed by both sides, unless you are using the 3-day rescission right.
Removing subjects
Once the conditions are met, BCFSA says you should give the seller written notice that you are removing the subject clauses. At that point the purchase is firm, and you are committed to complete it on the agreed date.
Set the removal date in the offer with enough time for everything to happen. A lender may need several business days for a final approval on a strata home, and a strata manager may take up to a week to provide a Form B, which the Strata Property Act requires within one week of a request. In our view, about ten days suits a multiplex home with a full strata review, and a shorter window should be weighed with your agent.
If a condition needs more time, ask the seller in writing for an extension before the deadline passes. An extension needs the seller's agreement, and it is written as an addendum to the contract.
The financing condition, in detail
A financing condition protects you if your lender will not lend on the home at the price, or on the terms you need. The lender looks at you, your income, debts and down payment, and at the home, often through an appraisal of its value.
With less than 20% down, the mortgage must be insured. The Financial Consumer Agency of Canada sets the minimum down payment at 5% of the first $500,000 and 10% of the rest up to $1.5 million, and 20% at $1.5 million or more. CMHC's premium is 4.00% of the loan between 90.01% and 95% of the price, 3.10% between 85.01% and 90%, and 2.80% between 80.01% and 85%. Ask your lender to confirm the premium and the payment before you remove the condition.
For a strata home, a lender may ask for the Form B or the strata's insurance certificate too. Send them early. If the appraisal comes in below the price, the lender may lend less, and you would need a larger down payment to make up the difference. A financing condition protects you from that risk while it is open, so do not remove it until the lender has the appraisal and has confirmed the amount.
The strata documents condition, in detail
This is the condition that matters most on a multiplex home. The Form B, which a strata must give within one week of a request under section 59, lists the fees, any money owed, approved special levies, the reserve fund balance, unfiled bylaw changes, upcoming resolutions, legal cases, outstanding work orders, parking and storage, and an insurance summary, with the rules, the budget and any depreciation report attached.
Beyond the Form B, ask for at least two years of council and general meeting minutes, the financial statements and the full insurance certificate. In a strata of 4 or fewer homes there is usually no depreciation report, because the requirement applies to stratas of 5 or more lots, so the minutes are where planned repairs show up.
Read for three things: money, such as a low reserve or a coming levy; disputes, such as a tribunal claim or an owner who will not pay; and repairs, such as a roof or a leak discussed but not yet fixed. If any of them worries you, ask your agent to get answers from the seller before the condition date.
- Form B, with its attached rules, budget and any depreciation report.
- Two years of minutes.
- Financial statements.
- The strata's insurance certificate and deductibles.
- Any engineer's or building inspection report the strata holds.
When the seller wants to keep the home on the market
A seller may accept your conditional offer and still want to consider other offers until you remove your subjects. BCFSA says the seller may ask for a clause that requires you to remove all your subject conditions within a set time if the seller receives another attractive offer. If you cannot, your conditional contract comes to an end.
If you see this clause, plan your financing and inspection so you could remove your subjects quickly if needed, and ask your agent what notice period the clause gives you.
Questions buyers ask
More in Making an Offer
Also worth reading
Where these numbers come from
Every figure on this page comes from the body that issues it. Rules and rates change, so each entry says when we checked it.
- Offers to Sellers (drafting, subject clauses, sellers' options, multiple offers, rescission). BC Financial Services Authority (BCFSA). Current page, accessed 23 October 2026.
- Deposits. BC Financial Services Authority (BCFSA). Current page, accessed 23 October 2026.
- Strata Property Act, Part 4: Governance (sections 40, 45, 53 and 59). BC Laws, King's Printer for British Columbia. Act current to 20 October 2026, accessed 23 October 2026.
- Saving for a down payment: minimum down payment by purchase price. Financial Consumer Agency of Canada. Current page, accessed 23 October 2026.
- CMHC mortgage loan insurance cost. Canada Mortgage and Housing Corporation. Current page, accessed 23 October 2026.
- Strata depreciation report requirements. Government of British Columbia. Published November 12, 2025, accessed October 8, 2026.
General information only. The down payment rule and mortgage insurance premiums on this page are illustrative and based on rules as of the dates noted. They are not financial, mortgage or legal advice, and not a guarantee of qualification or any outcome. CMHC rules and lender policies change. Always consult a licensed mortgage broker or your lender, and an independent real estate lawyer or notary, before removing any condition.
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