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Hi everyone, this is Aleem Peermohamed the Mortgage Broker. In Today’s Mortgage Minutes I’d like to talk about subjects, and more specifically, what a subject in a contract is? What Is A Subject To Mortgage?

Essentially a subject is a large ‘if’ statement. Say that you are writing an offer, for example of $500,000. Ideally you are going write the offer subject to financing, subject to a building inspection, and pretty much anything that you want, confirmed prior to your offer being binding. There is a maximum period of time (typically 7 days) for a subject removal period. If you do not agree to remove subjects within this period of time, your offer automatically becomes null, unless of course you and the seller agree on any extensions.

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When you are making your decision as to what subjects you will need to include in the contract, you most definitely want to consult your realtor. You also want to speak with me before you do it to find out the financing requirements. This will give us a better idea of how much time we are going to need to “remove” those subjects and make the contract binding.

As mentioned above, in a typical situation the subject removal period on an accepted offer is 7 days. Of course it’s not always possible, but that’s sort of the benchmark. A little bit longer certainly doesn’t do any harm and it will take a lot of pressure off. Keeping in mind that we must also allow enough time for an appraisal and inspection if required, and also in the cases of strata – we need to allot for enough time to review the minutes.

In a nutshell, what is a subject?, It’s the conditions to your offer. If you have any questions on subjects or any other mortgage matter, feel free to give me a call.

Vancouver Mortgage Broker, I’m Aleem Peermohamed.

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