Came across an interesting article on the Globe and Mail about the risk of making a purchase offer with no subjects (link below). From our perspective, being responsible for arranging the purchase financing, these are the most stressful types of deals. Even if you know the client’s income and credit are great, there’s always the chance that the lender won’t accept the property valuation or will find a deficiency with the structure or materials (plumbing, electrical, insulation, etc) and these issues can sink the deal. It is really important that buyers understand they can not only lose their deposit to the sellers if they are unable to complete their subject free purchase – they can also be taken to court and sued for damages if the sellers feel they have lost out on other offers and will suffer a loss due to the delay.
Luckily these types of deals aren’t common or typically necessary in our area; but buyers in Vancouver are increasingly forced to make these gambles just to have their offer taken seriously by a seller.