- Suspensory condition : Suspensory condition
Definition : Suspensory condition
A condition contained in a prior-contract that allows its validity to be suspended until a future and uncertain event that it provides for, such as obtaining mortgage financing, occurs. Thus, if the promisor-buyer fails to obtain the approval that will allow him to have a loan from a financial institution, he will in principle be "released" from his obligation to purchase.
The offer to purchase usually indicates a period during which the seller can accept or refuse it. It is essential to attach a period of acceptance and notification to the offer to purchase. This period is equivalent to the period of time during which this offer to purchase will remain valid. The seller can then accept or refuse it. Failing to include this period in the offer to purchase, the Civil Code of Quebec provides that it will lapse on the expiry of a reasonable time. In addition, the offer to purchase may include suspensive conditions for which it will be necessary to determine a deadline for completion. This type of condition makes it possible to suspend the validity of the offer to purchase until the realization of a future and uncertain event that it foresees, for example the obtaining of mortgage financing. These suspensive conditions must provide for sufficient time, so that the promisor buyer has an adequate reaction time before they expire.
The preliminary contract is signed before the purchase of a new or to be built property. To be enforceable, a preliminary contract must, contain the designation of the parties, the identification of the targeted immovable and the price offered.
Buying an apartment in a co-ownership is a major investment in a lifetime. To avoid being caught off guard during the process leading to your purchase, you should seek proper assistance.
An offer to purchase, also known as a promise to purchase, precedes any transaction relating to an existing property, as opposed to new or to be build condos, which are accompanied by a preliminary contract. The initiative of an offer to purchase is taken by a potential buyer, who will establish the conditions for the acquisition of a property. Although this document is not mandatory, legally speaking, it represents a mandatory passage for most buyers. Generally recorded in writing, the offer to purchase shows the willingness of the future purchaser to engage in the transaction. It is also a first step that leads to the deed of sale.
For the promising buyer, the offer to purchase is a way to reserve a property on conditions that he sets himself. When signing an offer to purchase, it may be that certain aspects surrounding the sale are beyond its control. This will happen, for example, if they have to sell their principal residence before buying, or if they need to get a mortgage before acquiring the new property. To this could be added another imponderable, that is to say that it may lack information to carry out a due diligence verification before the purchase. For this reason, offers to purchase generally include an obligation that is described as conditional, which is recorded as a suspensive condition.
The declaration of co-ownership is intertwined with the purchase of an apartment held in divided co-ownership. A genuine "user's guide", this document defines the rules to be observed in the immovable, as well as its administrative and management guidelines. Before acquiring a condo, any careful buyer should, imperatively, read the declaration of co-ownership. He will thus be able to verify the extent of his obligations and duties and the limits to his ownership rights. He will be able to evaluate its terms and conditions and make a decision on buying or not.
By buying an apartment in a co-ownership, you will most likely invest the largest amount of money of your life. In order to avoid being caught off guard during the steps prior to this acquisition, you will need to be well accompanied. After finding the condo that suits you, the first thing to do is to appreciate the condition, as well as that of the building that houses it. Remember that the acquisition of an apartment is not limited to the purchase of its walls. You become an undivided co-owner of the common portions, for example the entrance hall, the roof, the interior garage, the elevator or the windows of the building. To do things right, you need to seek the services of a building inspector. The latter will examine the unit and building that are of interest to you.