What does "subject to financing" mean in an offer to purchase?
Quick Answer
Short answer: It's a buyer condition giving time (usually 5–10 days) to secure written mortgage approval; the deal dies with deposit returned if financing is declined.
Detailed Explanation
Adding a financing condition (a.k.a. mortgage condition) protects buyers from being forced to close without a loan. The clause states the offer is void unless the buyer delivers satisfactory financing confirmation by a deadline date.
Sellers can keep marketing the home until conditions are waived, so buyers should act quickly with their lender and broker to gather documents and order the appraisal.
- Typical financing-condition window: 5-10 business days
- Provides written mortgage commitment to waive condition
- Rate holds protect against increases during condition period
Disclaimer: This page is for general information only and does not constitute legal, financial, or real estate advice. Always verify details with a licensed Alberta REALTOR®, mortgage professional, or lawyer before making decisions. Buy in Edmonton assumes no liability for actions taken based on this content.
Tim Grover, RE/MAX Excellence • 780-288-5144 • 5607 199 Street NW, Edmonton, AB
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