Waiving Conditions: Concerns & Repercussions

When the market is hot, it’s very common for buyers to waive many of the standard conditions in order to give themselves a better shot at a property.

Although this can be a favourable approach for someone who wants to rise above other offers, it’s important to understand that by doing so, you’re also giving up certain rights. There are two main conditions that people typically waive – here’s what you need to know about both.

Waiving the inspection

There are very few cases in which we could recommend this tactic. If you already have a recent inspection report or if it’s a brand-new property, you might be okay. But, in general, it’s strongly recommended to proceed with an inspection, especially for a first time buyer.

When this condition is waived, we automatically give up our legal warranty. Even if you end up suing the previous owner for something down the line and it gets brought before a judge, the thing the judge will ask is whether you had the property inspected.

You say, “No, I didn’t. It was a competitive market so I wasn’t able to do so.” And the judge will say, “In that case, you were not a prudent buyer, and I’m going to throw out this case because you gave up your rights: you didn’t do everything possible to get as much information and because of that, this suit isn’t valid.”

A lot of people assume they’ll be covered no matter what. But if you can’t prove you did your due diligence, you’ll be out of luck.

Waiving the document review

This condition usually applies to condos. It includes documents like financial statements and meeting minutes, which describe certain factors like whether the association has a contingency fund and how much you must keep in your account to cover potential issues (roof, windows, etc.)

When you’re buying a share of a building, you’re going to be responsible for anything that happens to the building itself. So, if you want to be informed about what you’re getting into, you’ll need to review these documents beforehand – if not, you might be buying into some serious problems.

The importance of doing your due diligence

When you waive certain conditions, you’re signing yourself up for short-term gain with the potential for long-term pain. It’s rare that a property or home is worth giving up your fundamental rights as a buyer – so be smart, do your homework, and if you need guidance along the way, our team is ready to help.

 

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