When putting an offer on your dream home, there are numerous pitfalls that can arise with the property or seller that you’ll want to avoid. “Subjects” on the offer contract will ensure that, when it comes time to put a deposit down and close on the home, you’ll be confident that you’re willing and able to make the deal.

This is why “subject removal” is such a key part of most real estate transactions in British Columbia, and one you must understand before moving forward in the process.

Related Definitions: Conditional Offer

What are subjects in BC real estate?

Subjects are conditions placed on an initial offer that must be satisfied before the deal becomes official. The buyer (usually) decides these conditions and lists them in the terms and conditions of the initial offer. 

Common subjects include:

• Subject to financing, making the offer conditional on you getting approved for a mortgage
  
• Subject to receiving and approving an inspection report, ensuring you’re informed and accept whatever comes up in an inspection
  
• Subject to property disclosure statement, making sure you know about any defects the seller is aware of
  
• Subject to receiving and approving a title search, allowing you to make certain the public Land Title records on the property are correct and there aren’t any outstanding claims on it
  
• Subject to receiving and approving strata documents, which can uncover information about the strata corporation and reveal, for example, if the current owner owes money to the corporation

What is subject removal?

Subject removal is the process by which these conditional subjects are fulfilled and then “removed” from the contract using a subject removal addendum.

The subject removal period is usually seven days long, and gives you (the buyer) time to take care of the necessary subject tasks before the deal is finalized. 

By that date, you’ll submit an official subject removal form and scratch them off the list.

How does the subject removal form work in BC?

The subject removal form, or the subject removal addendum form, is the document you’ll submit to remove the subject clauses from your offer. You’ll basically copy and paste your list of subjects with a legal phrase that states you are satisfied (see the phrasing described above). If you’re not adding any new terms, only you need to sign it, otherwise all involved parties must sign.

What if subjects aren’t removed?

If subjects aren’t removed, that means that you disapprove of something found during the subject removal process, and the deal collapses. It’s worth noting, however, that you do not submit the deposit until after subjects are removed. This means that if the deal falls through at this stage, you won’t be out your deposit, since you won’t have submitted it.

How to keep the subject removal process quick and simple

To keep the subject removal process as straightforward as possible, it’s important to do each of the following, if possible before even submitting your offer:

Review strata, HOA, title, and other important documents: Request these documents from the seller and review them carefully with a professional to avoid surprises.

Be prepared with financing and deposits: It’s better to communicate early with your bank that you’re planning on submitting an offer, rather than leaving it to the single week allowed in most subject removal periods. Same goes with your deposit—gather everything you need as early as possible in the process.

Line up inspection and appraisal professionals in advance: Make sure that your desired inspectors, appraisers, and other professionals are informed of your upcoming offer, and that they’re available in the necessary window. This will make bringing them onto the property seamless when the time comes.

The key throughout the process is early and effective communication. Keep everyone abreast of what’s going on and you won’t be in for a nasty surprise.