You are pending: Now What?
Your Offer is Pending! Here’s What Happens Next.
Congratulations! The seller has accepted your offer, and the property is now “Pending” or “Conditionally Sold.” This is a huge milestone, but the deal isn’t done just yet. You’ve now entered the most critical phase of the buying process: the conditional period.
This period is the time for you to do your due diligence and for the conditions in your purchase contract to be met. Here’s a guide to what happens during this crucial stage.
A Note on Terminology: “Pending” vs. “Escrow”
While you might hear the term “in escrow” in American media, the more common and accurate term in Alberta for this phase is the “conditional period” or being “under contract.” When a property’s status is “Pending,” it means an offer has been accepted, but it’s still subject to the buyer’s conditions being met. This is the timeframe (typically 7-10 business days) where you complete your final checks.
Your To-Do List During the Conditional Period
This is where your “safety nets” come into play. Here are the key steps you’ll be taking:
- The Home Inspection: This is your top priority. You will now hire a professional home inspector to get a detailed “health report” on the property. This is your chance to uncover any potential issues that weren’t visible during your initial viewings.
- Final Mortgage Approval: Your financing condition gives you the time to provide your lender with the purchase contract and any other required documents. They will review the details and provide you with a final, formal mortgage commitment.
- Review of Title & Documents: Your real estate lawyer will begin their work, which includes reviewing the property’s title to ensure there are no legal issues or claims against it. If you’re buying a condo, this is also when your lawyer will review the condominium documents.
Preparing for a Smooth Closing
While your due diligence is underway, there are a few other tasks to get started on:
- Secure Homeowner’s Insurance: Your lender will require you to have homeowner’s insurance in place for the closing day. It’s a good idea to start getting quotes as soon as your offer is accepted.
- Contact Utility Companies: You can begin scheduling the setup of your utility accounts (gas, power, water) for your possession date.
What Happens at the End of the Period?
Once your conditions have been met—you’re happy with the inspection and your financing is approved—you will sign a “waiver” or “notice of conditions fulfilled.” At this point, the deal becomes firm and legally binding. The next and final stage is the closing process, which culminates in you getting the keys to your new home!
For a complete overview of the buying journey, return to the Ultimate Guide to Buying a Home
Offer & Closing FAQs
Have more questions about the final steps? Contact us for a free consultation.
What makes an offer ‘strong’ besides the price?
A strong offer has several components. A significant deposit shows you are a serious buyer. Fewer conditions (like financing and inspection) make your offer more attractive and less risky for the seller. A possession date that aligns with the seller’s preferred timeline can also be a powerful negotiating tool. Finally, being fully pre-approved for your mortgage is essential.
What is the difference between a ‘conditional offer’ and a ‘firm offer’?
A ‘conditional offer’ means the sale is subject to certain conditions being met, most commonly a satisfactory home inspection and the buyer securing formal financing. The deal is not legally binding until these conditions are waived. A ‘firm offer’ has no conditions and becomes legally binding as soon as the seller accepts it.
What happens to my deposit? Is it refundable?
Your deposit is held in a secure trust account by the seller’s real estate brokerage. It is not given directly to the seller. The deposit forms part of your down payment. If your offer is conditional and you decide not to proceed because a condition (like the home inspection) isn’t satisfied, your deposit is typically returned to you in full.
What does a real estate lawyer do for a buyer?
Your real estate lawyer is crucial for protecting your interests. They review the purchase contract, search the property’s title to ensure it’s free of liens or issues, coordinate with your lender to receive mortgage funds, handle the transfer of funds to the seller’s lawyer, and legally register the home in your name.
What happens on possession day?
On possession day (or closing day), the lawyers handle the final transfer of funds and ownership. Your lawyer will receive the mortgage funds from your lender and transfer them to the seller’s lawyer. Once the money is confirmed received and the title is registered, the sale is complete. At that point, the seller’s lawyer authorizes the release of the keys, and you can officially take possession of your new home.
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