Subject to What? Understanding Subject Removal in BC Real Estate Deals

What Is Subject Removal in BC Real Estate?

In British Columbia real estate, subject removal is a critical step in the home buying process. It refers to the period after an offer has been accepted but before the sale becomes legally binding, during which the buyer has time to satisfy certain conditions—or "subjects"—outlined in their offer.

Common Subjects Include:

Financing approval from a lender
A satisfactory home inspection
Review of strata documents (if applicable)
Obtaining property insurance
Reviewing a property title search

These subjects protect buyers, giving them time to confirm that the property meets their needs and that they can proceed with confidence. Typically, the subject removal period lasts 7 to 14 business days, but this can vary depending on the situation.

Once all conditions are met, the buyer formally removes the subjects in writing. At this point, the contract becomes firm and binding, and the buyer is legally committed to purchasing the home.

Why It Matters in Victoria's Market

In a competitive market like Victoria, buyers may feel pressure to make subject-free offers, or have less subjects to compete—but this can carry risks. Waiving subjects should only be done with a clear understanding of the potential implications, ideally with guidance from a trusted REALTOR®.

Subject removal is more than just a formality—it’s a key safeguard in the home buying process. If you’re navigating a purchase in the Victoria area, we’re here to help you understand every step and make informed decisions.

A Quick Guide to the Most Common Subjects

1. Subject to Financing

This subject gives the buyer time to confirm that they can obtain a mortgage for the property. Even if a buyer is pre-approved, the lender still needs to approve the specific property before finalizing the loan. This includes reviewing the appraisal, the title, and any applicable strata documentation.

2. Subject to Home Inspection

A professional home inspection allows the buyer to assess the condition of the home. The inspector will look for issues with the roof, foundation, plumbing, electrical systems, and more.

3. Subject to Review of Strata Documents

For condos, townhomes, or any strata property, buyers need time to review strata meeting minutes, bylaws, financials, and depreciation reports.

4. Subject to Obtaining Insurance

Before finalizing a home purchase, the buyer needs to confirm they can get insurance coverage for the property.

5. Subject to Title Review

Buyers typically request a copy of the property's title to ensure there are no unexpected charges, liens, or easements registered against the property.

Usually all the subjects are officially removed at the same time, but realtors will often be communicating with each other about the progression. In slower markets most offers will contain all the relevant conditions, and have a longer period to remove them. In a hot market people will try to have as few conditions as possible, and the smallest condition removal window as possible.

What Happens if an Issue Arises?

Sometimes, during the subject removal period, a concern is uncovered—like a leaky roof, pending special levy, or insurance issue—but the buyer still wants to proceed. In these situations, there are a few options to move forward while protecting both parties.

1. Renegotiation of Price or Terms

If a home inspection reveals a costly repair, the buyer may negotiate a price reduction or ask the seller to address the issue before closing. This allows the buyer to proceed with subject removal while ensuring the issue is acknowledged and accounted for.

2. Holdbacks at Completion

A holdback is when the buyer’s lawyer or notary withholds a portion of the purchase price on the completion date to address unresolved concerns. For example, if a repair is promised but cannot be completed before possession, funds may be held in trust until the work is done.

3. Extension of the Subject Removal Period

If more time is needed to investigate the issue—such as obtaining quotes or additional reports—the parties can agree to extend the subject removal deadline. This must be done in writing and signed by both parties.

4. Accepting the Risk and Proceeding as Is

In some cases, buyers may choose to proceed despite the issue, understanding the potential cost and implications. This is more common when the market is competitive and the buyer doesn’t want to lose the home.

5. Collapsing the deal. If a buyer is unable to get financing, or insurance, or finds out there are more repairs needed than they want to deal with, they can walk away from the deal.