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Should you include a subject-to-sale clause when writing an offer in Victoria, BC?
A subject-to-sale clause can be a powerful risk management tool, but it also introduces complexity and negotiation challenges. In Victoria’s more balanced, inventory-rich market, understanding when this strategy helps or hurts is essential for buyers who want both protection and competitive positioning.
What Is a Subject-to-Sale Clause?
A subject-to-sale clause means your purchase is conditional on the successful sale of your current property. If your property does not sell within the agreed timeframe, you have the right to collapse the purchase without completing the transaction.
In markets like Victoria, where price points are high and carrying costs are meaningful, this clause can provide important financial protection, but it is not without trade-offs.
Key Advantages of a Subject-to-Sale Offer
Reduced Financial Risk
One of the strongest reasons buyers use a subject-to-sale clause is risk control.
You avoid the possibility of owning two properties simultaneously
You reduce exposure to double mortgage payments, property taxes, insurance, utilities, and strata fees
You can sell your existing home properly rather than under pressure
This is especially important in Victoria, where even short periods of overlapping ownership can create significant monthly costs.
Smoother Logistics and Timing
Coordinating two transactions can be very complex. A subject-to-sale clause can simplify the process.
Reduces the need for temporary housing or multiple moves
Makes it easier to align possession dates and moving logistics
Allows time to coordinate movers, contractors, and cleaners
For families, downsizers, and move-up buyers, this logistical stability can be just as valuable as the financial protection.
Emotional and Decision-Making Confidence
Buying and selling at the same time can be stressful.
Buyers often feel more comfortable pursuing their ideal property when protected
Reduces pressure from lenders or family members concerned about financial exposure
Allows more confident decision-making rather than rushed compromises
Peace of mind is often an underappreciated benefit, but it plays a meaningful role in major real estate decisions.
Major Disadvantages to Consider Carefully
Less Attractive to Sellers
From a seller’s perspective, subject-to-sale offers introduce uncertainty.
Sellers may view these offers as weaker or riskier
A cleaner offer at a lower price may be preferred
In competitive segments, subject-to-sale offers often rank last
Even in balanced markets, sellers value certainty, and this condition can work against you.
Time Clause (“Shotgun Clause”) Risk
Most subject-to-sale offers in British Columbia include a time clause that protects the seller.
The seller may continue marketing the property
If another acceptable offer is received, you are given notice, often 24 to 72 hours
You must either remove your subject-to-sale clause or let the deal collapse
If your home has not sold when that notice arrives, you may face a difficult choice.
Proceed without protection and potentially carry two homes
Walk away and lose the property you intended to buy
Understanding this risk in advance is critical.
Longer Conditional Periods
Subject-to-sale clauses typically require extended timelines.
Sellers may push back on price or terms to compensate
Longer conditions increase the risk of delays and renegotiations
More moving parts mean more opportunities for complications
In transactions where the seller also has a purchase planned, this complexity can amplify friction.
When a Subject-to-Sale Clause Can Make Sense
Moving Up in a Cooler or Balanced Segment
This strategy works best when buying into a less competitive segment.
Higher inventory levels and slower absorption favour flexibility
Sellers may be more open to structured conditions
Works best when your current home is highly saleable
Homes in strong neighbourhoods, with realistic pricing and minimal competition, significantly improve your odds.
You Are Risk-Averse or Highly Leveraged
For some buyers, carrying two properties is simply not an option.
Lenders may require the sale of your existing home
Cash flow constraints may eliminate bridge financing
Risk management may outweigh competitive considerations
In these cases, a subject-to-sale clause may be the most responsible approach.
When It Can Work Against You
Competitive or Scarce Inventory Situations
In sought-after neighbourhoods or high-demand property types.
Subject-to-sale offers are often dismissed quickly
Sellers may actively seek backup offers
Time clauses are more likely to be triggered
If the property is priced sharply or newly listed, your chances may be limited.
If Your Current Property Is Hard to Sell
Certain homes present higher risk to sellers.
Unique or rural properties
Very high-end price points
Location or condition challenges
If your home is expected to take longer to sell, sellers may see your offer as especially uncertain.
Practical Tips to Structure a Strong Subject-to-Sale Offer
Strengthen Every Other Term
Offset your condition wherever possible.
Offer strong pricing supported by data
Increase deposit amounts where appropriate
Keep secondary subjects clean and limited
The goal is to compensate for uncertainty with professionalism and preparedness.
Provide Evidence of Sale Readiness
Reassure the seller that your home will sell.
Share a comparative market analysis
Outline pricing strategy and marketing plan
Confirm professional photography and launch timing
Preparation signals seriousness and reduces perceived risk.
Set Clear, Realistic Timelines
Avoid open-ended conditions.
Commit to listing your home by a specific date
Set firm deadlines for subject removal
Understand exactly how a time clause would operate
Before writing the offer, discuss with your agent what you would do if the clock starts unexpectedly.
Coordinate Closely With Your Lender and Realtor
Alignment is essential.
Confirm lender requirements if your sale price differs from expectations
Understand bridge financing options, if any
Ensure your listing launches quickly and competitively
Strong coordination improves the odds that your subject-to-sale condition is removed smoothly and on time.
Final Thoughts on Subject-to-Sale Offers in Victoria BC
A subject-to-sale clause is neither inherently good nor bad. It is a strategic tool that must be used thoughtfully, with a clear understanding of market conditions, seller psychology, and your own financial tolerance for risk.
In Victoria’s evolving real estate market, success depends on balancing protection with competitiveness. With proper planning, realistic pricing, and experienced guidance, a subject-to-sale offer can work. Without those elements, it can quickly become a liability.
Questions About Your Next Step?
Every real estate decision is different, and the right approach depends on your goals, timing, and risk tolerance. Whether you’re buying, selling, or planning ahead, I’m available to provide clear, informed guidance so you can make decisions with confidence.
Please feel free to contact me at 250-589-5991 or contact me online.
