Question:
What is a condition subsequent?
Answer:
It is a condition which presumes confirmation unless a notice is provided to the contrary.
This means the time limit will come and go without any paperwork required.
If the condition were financing until 5:00 pm on Friday. If the Buyer wishes to confirm the deal, then they do nothing.
On the other hand, if the financing were not approved and the Buyer wanted out, then the Buyer would have to send a Notice of Termination.
This can be risky for a real estate agent with no support staff. Usually, it is only used by large law firms which will not miss the due date.
Brian Madigan LL.B., Broker