Strata and No-Subject Offers: A High-Risk Combination

In a hot market, buyers may be tempted to do “whatever it takes” to get that property – including submitting a no-subject offer. As a licensee, I have a duty to act in my clients’ best interests– and that means making sure in advance that they understand the risks a of no-subject offers

RISK

By not including subject clauses, you as a buyer may not have an opportunity to review strata documents, arrange for an inspection, or confirm financing or insurance approvals. Without this due diligence, you may not be able to make an informed decision about your purchase. If you get this information after the offer is accepted, you may not be able to use it to collapse the deal should you wish to do so.

My Advice to the Buyer:

If you are inclined to make it an offer with no subject clauses despite your Realtor’s advice and without having performed any due diligence because you don’t want to miss out ‘on this one’, you will be taking many risks. Be sure to understand that by moving forward with such an offer and without letting your Realtor perform the normal due diligence, you are accepting those risks.

Good Luck!

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