Subject Removal Form BC: 

How to Remove Subjects in Real Estate

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Written By: Mariko Baerg, REALTOR of Bridgewell Real Estate Group
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If you’re going through subject removal then you have an accepted offer on a place pending subject removal, and now you just need to get all of your ducks in a line!

Once you’ve done all your due diligence on the property, the next step is removing subjects.

This blog explains how to remove subjects on a property and gives important details on the subject removal form.

For everything you need to know about the subject removal form, read on!

What is subject removal?

Subject removal is a real estate process in which buyers perform due diligence on the subjects (or conditions) that were offered in the original contract. These may include but are not limited to: subject to financing, subject to inspection, subject to title, subject to property disclosure statement, and subject to strata documents.

For more details on the types of conditions or subjects that would be included in the contract, check out this blog: Real Estate Clauses in Contracts

Upon the subject removal date, which is typically 7 days from the accepted offer date, the buyer would then “remove subjects” by filling out a subject removal form stating that they are satisfied with the results of each subject and are committing to purchasing the home.

For more details on subject removal, check out our blog post here: Subject Removal in Real Estate 101

When in the deposit due in real estate?

At the time that a buyer remove subjects, the deposit is then due upon removing subjects or within 24 hours depending on how the contract was worded.

For more information on real estate deposits, check out our blog here: Real Estate Deposits 101

How do I remove subjects in real estate?

The way in which a buyer would remove subjects is by use of an ‘addendum’ to the contract. This addendum would state the following:

“The buyer’s approve and are satisfied with the subjects stated in the original contract dated [insert date], and hereby remove the following:

  • Subject to financing
  • Subject to inspection
  • Subject to title
  • Subject to property disclosure statement
  • Subject to strata documents.” 

The subjects that you remove and how the addendum is worded is dependent on how the original contract was worded. It is simply just a copy and paste of the subjects that were included in the original contract, with a statement above saying that you are satisfied and approve the results. 

The purpose of removing subjects in real estate is to show that you are satisfied with the state of the house and it’s lot, and were able to obtain satisfactory financing at a satisfactory rate. From there, you would be ready to hand in your deposit and wait patiently until the completion and possession date for your new home. The deal would now become “firm.”

Who needs to sign the subject removal form BC? (addendum)

In the case that no additional terms are added, then the buyers are the only signatures required on the subject removal addendum form.

In the case that additional terms are added, such as a requirement for the sellers to purchase a working washer and dryer prior to possession, then the contract is technically being re-negotiated and must be signed by all parties involved.

Please see a picture below for an example of an addendum to the contract:

 subject removal form bcWhat if the sellers will not agree to negotiate based on the findings of the subject?

If you find an issue related to one of the subjects, such as the inspection, then you can ask the seller to fix it prior to the possession. However, because you would be adding a term that the seller must complete, the contract is being re-negotiated and the seller must agree to it. This scenario can turn out multiple ways:

  1. The seller agrees to your requests and you proceed with subject removal.
  2. The seller does not agree to your requests and you do not proceed with subject removal and therefore collapse the deal.
  3. The seller does not agree to your request and you continue to proceed with subject removal and take on the repairs/risk yourself.

As a buyer, you have to decide whether what you are asking for is worth the potential of losing the home altogether. Does the hot water tank really need to be replaced? Is it worth walking away from the home if the seller disagrees with you and says it’s working fine? In every home, you have to take in to consideration that there will always be flaws. There is no perfect home inspection. You’re buying a home that’s probably been lived in before..

Purchasing a home is a responsibility and you should expect to take on some maintenance and upgrade risk/costs upon possession. With that being said, if an issue is major, then it may be worth walking away from the deal altogether.

Are you thinking of purchasing a house sometime in the near future? Give us a call at 604-765-0376 for a run through of the basics. Prefer text? 604-319-0200 or email mariko@bridgewellgroup.ca to start a conversation.

Make the home buying process straight-forward from the start. Talk to one of our realtors today.

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