A buyer includes a home inspection condition in their offer that states 'subject to buyer's approval of a home inspection.' What type of condition is this considered to be?

Option A: An objective condition that requires specific defects to be found

Option A is incorrect because objective conditions require specific, measurable criteria or defects to be identified. The wording 'subject to buyer's approval' does not establish any objective standards or require specific defects to be found. Instead, it grants the buyer complete discretionary authority to approve or disapprove based on their personal satisfaction, regardless of whether specific defects exist.

Option C: An invalid condition because it's too vague

Option C is incorrect because this condition is not too vague to be enforceable. Canadian courts have consistently recognized and upheld subjective conditions that are properly worded. The phrase 'subject to buyer's approval' provides sufficient clarity about who has the decision-making authority and what standard applies. While subjective, it establishes clear parameters for performance and is legally valid.

Option D: A condition that automatically expires after 5 business days

Option D is incorrect because there is no automatic expiry period for conditions unless specifically stated in the contract. The condition remains in effect until the buyer either waives it, the specified time period expires (if one is included), or the condition is fulfilled or breached. The 5-business-day timeframe is not a default rule for home inspection conditions in Canadian real estate law.