By "dates," I don't mean candlelit dinners and playing footsy! I mean important dates in a real estate transaction; they are...
The Acceptance Date
The first is the date of acceptance. This is when the buyer and seller agree to a price and conditions. Most offers are conditional, meaning the buyers agree to buy if they are satisfied with the condition of the home, the documentation associated with the home, and any other conditions in the contract.
The buyer is usually given a week to satisfy their conditions, but this can vary depending on the deal.
The Subject Removal Date
The subject removal date is when the buyer removes the conditions (aka "subjects"). This is the next important date for a real estate transaction.
By removing the conditions, the buyer agrees to pay the purchase price on the Completion Date unconditionally. It is the buyers' responsibility to:
- Get a property inspection
- Carefully review the home's documentation
- Finalise their financing
- Fulfill any other conditions before the Subject Removal Date
If the buyer does not fulfill these conditions or remove the subjects, the deal will collapse.
The Completion Date
This is the date when the buyer pays the purchase price and becomes the registered owner of the property. It is also the date when the seller receives the purchase price and gives up ownership of the property. The buyer does NOT move in on the completion date.
The Possession Date
Move in day is starts from 12 noon on the Possession date. The sellers have to have all of their stuff out of the home and the buyers can move and make use of the home. This is the date when house keys are handed over!
Do you have your own possession date horror story, or one with a happy ending? Leave your comment below.
Mike Stewart is a sales representative with CENTURY 21 In Town Realty based in Vancouver, BC.