Get it in writing!

In a recent bulletin from the Alberta Real Estate Association to members of the Alberta Real Estate industry it was noted that some Lenders are now requiring a condition for review and approval of condo docs by the “insurer” before they will finance the deal.

While this may not on the surface appear to be a big deal the issue has been that this condition has only come up at the stage when the instruction for the mortgage are sent to the Buyers Lawyer. The other issue with this lenders condition is that it often is above and beyond any condo document inspection that a Buyer has completed during the normal process of the offer to purchase.

As is always the best practice is to get it in writing! So far this condition has only been seen with purchases made that require an insurer (usually less than 25% down). The important lesson in all of this – get a statement in writing from the Lender that as a Buyer you have fully satisfied all of the lenders conditions prior to removing the conditions on a purchase contract.