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?
Correct Answer
D) A subjective condition that depends on the buyer's personal satisfaction
This is a subjective condition because it depends on the buyer's personal satisfaction and approval rather than objective criteria. The buyer has discretion to determine whether they are satisfied with the inspection results, though they must act in good faith and not be arbitrary or capricious.
Why This Is the Correct Answer
Option D is correct because the phrase 'subject to buyer's approval' creates a subjective condition that depends entirely on the buyer's personal satisfaction and discretion. Under Canadian contract law and provincial real estate legislation, subjective conditions are valid when they grant the buyer the right to determine satisfaction based on their own judgment. The buyer has the authority to approve or disapprove the inspection results according to their personal standards, though they must still act in good faith and not be arbitrary or capricious in their decision-making process.
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Previous Question
A buyer includes a condition in their offer stating 'subject to buyer's approval of a satisfactory home inspection.' The inspection reveals minor cosmetic issues but no structural problems. The buyer attempts to use this condition to withdraw from the purchase. Which legal principle would likely apply?
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A buyer submits an offer with a condition for financing approval by 5:00 PM on Friday, March 15th. The buyer's mortgage is approved on Thursday, March 14th. What should the buyer do to proceed with the purchase?