Stackable Conditions Work Well

You don’t always have to have all your Conditions spelled out one after the other taking up pages and pages in an agreement.

Why not consider stacking them?

Let’s merge building inspection, environmental, lawyer’s approval, SPIS, septic, Insurance, and water.

Consider the following:

“This Offer is conditional upon the following:

  1. Inspection: the inspection of the subject property by a home inspector at the Buyer’s own expense, and the obtaining of a report satisfactory to the Buyer in the Buyer’s sole and absolute discretion.
  2. Environmental: the Buyer determining, at the Buyer’s own expense that all environmental laws and regulations have been complied with, no hazardous conditions or substances exist on the land, no limitations or restrictions affecting the continued use of the property exist, other than those specifically provided for herein, no pending litigation respecting Environmental matters, no outstanding Ministry of Environment Orders, investigation, charges or prosecutions respecting Environmental matters exist, there has been no prior use as a waste disposal site, and all applicable licences are in force. The Seller agrees to provide to the Buyer upon request, all documents, records, and reports relating to environmental matters in possession of the Seller. The Seller further authorizes (insert appropriate Ministry), to release to the Buyer, the Buyer’s Representative or Solicitor, any and all information that may be on record in the Ministry office with respect to the said property.
  3. Lawyer’s Approval: the approval of the terms hereof by the Buyer’s Solicitor.
  4. SPIS: the Buyer receiving a Seller Property Information Statement completed by the Seller and the Buyer accepting the information on the form as satisfactory in the Buyer’s sole and absolute discretion.

5) Sewage Systems: the Buyer determining, at the Buyer’s own expense, that:

(1) all sewage systems serving the property are wholly within the setback requirements of the said property and have received all required Certificates of Installation and Approval pursuant to the Environmental Protection Act;

(2) all sewage systems serving the property have been constructed in accordance with the said Certificates of Installation and Approval;

(3) all sewage systems serving the property have received all required use permits under the said Act or any other legislation; and further, that on inspection, the septic bed is in good working order.

The Buyer shall be allowed to retain at the Buyer’s own expense, a professional in the septic business to make an examination of the septic system.

Seller agrees to allow the Buyer to request information as outlined above from the appropriate authorities having jurisdiction.

6) Insurance: Buyer arranging insurance for the property satisfactory to the Buyer in the Buyer’s sole and absolute discretion.

7) Water: the Buyer determining, at the Buyer’s own expense, that: (1) there is an adequate water supply to meet the Buyer’s household needs; (2) the pump and all related equipment serving the property are in proper operating condition; and (3) the Buyer can obtain a Bacteriological Analysis of Drinking Water from the authority having jurisdiction indicating that there is no significant evidence of bacterial contamination.

The Seller agrees to allow access to the subject property to the Buyer or the Buyer’s agent for the purpose of satisfying these conditions.

Unless the Buyer gives notice in writing delivered to the Seller personally or in accordance with any other provisions for the delivery of notice in this Agreement of Purchase and Sale or any Schedule thereto not later than _____ p.m. on the _____ day of __________, 20_____, that these conditions have been fulfilled, this Offer shall become null and void and the deposit shall be returned to the Buyer in full without deduction. These conditions are included for the benefit of the Buyer and may be waived at the Buyer’s sole option by notice in writing to the Seller as aforesaid within the time period stated herein.”


Naturally, you can have your own order, This approach simply takes up far less space. Also, it specifies one time period for the Conditions rather than one for each. It allows you to find the correct clause since there are headings and italics.

It saves a great deal of paperwork. With this many Conditions and one due every few days, then Waivers or Notices of Fulfillment are going to be required continuously. Some agents find this to be fun while others may be somewhat annoyed.

Remember, it’s really not “firm” until there are no conditions left at all. This is usually the way it’s handled in commercial transactions.

Brian Madigan LL.B., Broker

Comments 3

  1. Hi I am a student in the real estate program. What type of contracts can conditions be stacked in? From what I have read and assume it can only be done in condition precedent and I am not sure if it can be done in true condition precedent which does not seem likely. Since in true condition precedent it relies on a third party and if one third party cannot help but the other can it can put the contract in a no so good situation? Also, what about condition subsequent? Can conditions be stacked in that as well? I am not sure at all. Also, let me know if I was wrong. Thank you :).

    1. Also, if you have my email can you send me a private response on their as well? I will check back on this page but I am not always present on my computer. Thanks again :).

    2. Post

      Always best to treat True Conditions Precedent separately.
      Conditions Precedent and Conditions Subsequent can be drafted as one or the other and then all stacked.

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