ImmoMulti — direct buyer of income properties on the North Shore — supports owners all the way to signing. An accepted purchase promise is not a firm sale: it almost always contains suspensive conditions that the buyer must remove before the transaction becomes binding. According to the OACIQ, "an accepted transaction proposal usually contains conditions that must be fulfilled before the transaction can be concluded, such as financing, building inspection, and review of documents." For the seller of a plex, this is the most uncertain phase of the sale: until the conditions are removed, the buyer can walk away without penalty. This guide covers the usual conditions, their deadlines, what happens when one fails, and how to secure the transaction.
What does removing the conditions on a purchase promise mean?
Removing conditions is the point at which the buyer confirms in writing that the suspensive conditions of their purchase promise are fulfilled. Until these conditions are removed, the sale is not firm: the buyer keeps the ability to withdraw without penalty if a condition fails.
A purchase promise signed by both parties is a contract that binds you and is difficult to cancel. But as long as it contains unfulfilled suspensive conditions, it does not turn into a binding sale. Each condition protects the buyer against a specific risk: not obtaining financing, discovering a major defect, inheriting problematic leases, or an encroached lot.
According to the OACIQ, the body that regulates real estate brokerage in Québec, these conditions must be fulfilled before the transaction can be concluded, and the broker is responsible for following up on them. For the seller of a plex or income property, understanding this mechanism changes everything: only when the last condition is removed does the sale truly become secure.
Source: OACIQ — Notice and follow-up on fulfilment of conditions.
What are the usual conditions in a plex purchase promise?
For a multiplex, four conditions come up almost every time. Each corresponds to a clause in the OACIQ purchase promise form and carries a deadline.
1. Mortgage financing
The financing condition lets the buyer render the promise null if they do not obtain the loan they need. Éducaloi recommends that the offer "contain all the details that will prevent you from having to buy if you cannot obtain the desired financing" — for example a loan at a given maximum rate. Once the lender's unconditional commitment is obtained, the buyer removes this condition.
2. Building inspection
The buyer has the plex inspected by an inspector or professional. According to the OACIQ, once the inspection is carried out, the buyer "may declare himself satisfied with the results — which means that the condition has been fulfilled — or declare himself not satisfied," in which case he must notify the seller that he is rendering his promise null and void by attaching a copy of the report.
3. Review of documents and leases
On an income property, the buyer insists on reviewing the leases, annexes, income-and-expense statement and other documents. The seller must provide them within a set deadline; the buyer then has seven (7) days following the expiry of that deadline to notify the seller in writing if unsatisfied.
4. Verification of the location certificate
The location certificate, issued by the land surveyor, describes the current state of the property. The notary analyzes it to detect servitudes, encroachments or non-compliance. According to the Chambre des notaires du Québec, the seller must provide an authentic copy of their title and the location certificate.
Sources: OACIQ — The Promise to Purchase · Éducaloi — Making an offer: 6 things to check · Chambre des notaires — Purchase offer and preliminary contract.
What are the deadlines to remove each condition?
Deadlines are negotiated in the promise, but some benchmarks recur. Document review follows a delivery deadline set for the seller, then a 7-day analysis window for the buyer.
| Condition | Typical deadline | What the buyer must do |
|---|---|---|
| Financing | 7 to 15 days | Provide the lender's unconditional commitment |
| Building inspection | 7 to 15 days | Declare satisfaction, or notify with the report |
| Review of documents and leases | Delivery deadline + 7 days | Notify in writing if unsatisfied |
| Location certificate | Variable | Have the notary analyze the certificate |
Key points on deadlines
- Deadlines run from acceptance of the promise, or from delivery of the documents for the review condition.
- If no notice of dissatisfaction is given within the deadline, the condition is generally deemed fulfilled.
- A location certificate that must be ordered can extend the timeline by several weeks.
Source: OACIQ — Proof of receipt and follow-up on conditions.
What happens when a condition is not fulfilled?
This is the heart of the seller's risk. When a suspensive condition is not fulfilled, the buyer can render their purchase promise null and void by notifying the seller — without penalty.
Concretely: if the buyer does not obtain financing, declares themselves unsatisfied with the inspection or the lease review, or if the certificate reveals a deal-breaking issue, they can withdraw. Éducaloi notes that a promise is a contract that is hard to cancel, but "a contract clause can provide for cancellation of the offer under certain conditions." Suspensive conditions are precisely those clauses.
The deposit is then, in principle, refunded according to the terms set out in the promise, provided the buyer followed the mechanism (written notice within the deadline, supporting documents such as the inspection report). For the seller, the property returns to the market — which is why it is essential to frame these conditions carefully from the negotiation stage.
The risk for the seller
An "accepted" promise loaded with conditions is nothing like a guaranteed sale. Each condition not removed within its deadline is an exit door for the buyer. A deadline that is too long, or documents delivered late, prolong your exposure to a withdrawal.
"Once the inspection is carried out, the buyer may declare himself satisfied with the results — which means that the condition has been fulfilled — or declare himself not satisfied, in which case he must notify the seller that he is rendering his promise null and void by attaching a copy of the report."
— OACIQ, on the inspection conditionHow does a seller secure the removal of conditions?
A savvy seller does not endure the conditional period — they accelerate it. Here are the concrete levers.
- Prepare documents in advance — leases, annexes, income-and-expense statement, invoices, an up-to-date location certificate. The document-review condition cannot be removed until the buyer has received them.
- Verify the location certificate before listing. If it is outdated or reveals an encroachment, it is better to resolve it or order a new one early.
- Negotiate short but realistic deadlines: enough for the buyer to act, short enough to limit your exposure.
- Document the follow-up with the OACIQ Notice and follow-up on fulfilment of conditions form, which traces each removal.
The seller's checklist before the conditional period
- All signed leases and their annexes gathered
- Income-and-expense statement for the last 12 months
- Up-to-date and compliant location certificate
- Invoices for major work (roof, foundation, plumbing)
- Proof of compliance (basement unit, smoke detectors)
Source: OACIQ — Fulfilment and follow-up on conditions · Chambre des notaires — What a title search by a notary involves.
Reducing conditions: the direct sale of a plex on the North Shore
Each condition added to a purchase promise is one more chance for the buyer to withdraw. One way to reduce that risk is a direct sale to a specialized buyer of income properties on the North Shore.
A buyer like ImmoMulti knows the market of Terrebonne, Mascouche, Blainville, Boisbriand, Saint-Jérôme, Saint-Eustache and Deux-Montagnes, and often buys the plex as-is, with tenants in place. Conditions are generally fewer and deadlines shorter, which lowers the risk of an unfulfilled condition causing the sale to collapse. Each offer remains subject to standard verifications, but the process is streamlined and the timeline predictable.
To go further, read our guide to the 5 purchase promise clauses to have reviewed, our article on the documents to prepare for due diligence, or our tips to sell an income property fast. You can also get a direct offer with no obligation.
Purchase promise, offer and sale: don't confuse the steps
Before even discussing the removal of conditions, the vocabulary needs to be clear, because confusing "offer," "promise" and "sale" is the first source of mistakes among plex owners selling on their own. These three words do not describe the same legal reality and do not carry the same consequences.
The offer to purchase: the buyer's proposal
The offer to purchase — which the OACIQ now calls a "purchase promise" in its forms — is the document by which a buyer proposes to acquire your income property at a given price and on given terms. Until you sign it, it has no binding force: you can refuse it, accept it, or respond with a counter-proposal that changes the price, the occupancy date, the list of inclusions or the deadlines for fulfilling the conditions.
The accepted promise: a contract, but not a sale
As soon as you sign, the promise becomes a contract that binds both parties. Éducaloi puts it bluntly: "An offer to purchase is a contract: once signed by the buyer and the seller, it is very difficult to cancel." But "difficult to cancel" does not mean "sale concluded." The accepted promise remains conditional until its suspensive conditions are removed. That is exactly the nuance between a sale that closes and one that collapses three weeks later.
The sale: signing the notarial deed
The sale itself only occurs when the notarial deed is signed before the notary, once all conditions are removed and the buyer's financing is disbursed. That is when the title is transferred, the price is paid and the keys change hands. Between the accepted promise and this signing, several weeks usually pass: the conditional period.
| Step | Legal nature | Is the seller bound? |
|---|---|---|
| Offer received, unsigned | Mere proposal | No — free to refuse or counter |
| Accepted promise with conditions | Conditional contract | Yes, but the sale is not firm |
| Conditions removed | Contract now firm | Yes — obligation to sell |
| Notarial deed signed | Perfected sale | Transfer of ownership complete |
Why this distinction changes everything for the seller
- An "accepted" promise does not take your plex off the market risk-free: the buyer keeps exit doors until the conditions are removed.
- Each suspensive condition delays the moment you are truly assured of selling.
- It is the removal of the last condition — not the signing of the promise — that makes the sale firm.
Sources: Éducaloi — Cancelling an offer to purchase · OACIQ — The Promise to Purchase.
The financing condition, step by step
Financing is by far the condition that causes the most multiplex purchase promises to fall through. A buyer can be perfectly sincere and solvent and still be refused their loan: a lender's criteria for an income property are not those for a single-family home. Understanding how this condition unfolds lets the seller anticipate the blockages.
Step 1 — The buyer files the application
As soon as the promise is accepted, the buyer (or their mortgage broker) sends the file to the lender: the signed purchase promise, the leases, the income-and-expense statement and, often, the municipal assessment. For a plex of five units or more, the lender analyzes the building's ability to be self-financing, not just the buyer's personal income.
Step 2 — The appraisal of the property
The lender almost always orders a certified appraisal. If the value retained by the appraiser is lower than the agreed price, the loan amount is capped accordingly and the buyer must make up the gap out of pocket, or renegotiate. This is one of the most frequent breaking points: a price that is too optimistic for the North Shore can run into a lower appraisal.
Step 3 — The lender's commitment and the removal
When the lender issues an unconditional commitment (or one whose residual conditions are purely administrative), the buyer can remove the financing condition. Éducaloi recommends that the clause "contain all the details that will prevent you from having to buy if you cannot obtain the desired financing" — for example a maximum rate or a minimum loan amount. If the loan obtained does not meet those parameters, the buyer can withdraw.
The financing trap for larger plexes
The more units the building has, the more complex the financing: debt-coverage ratio, larger down payment, sometimes CMHC insurance. A seller who accepts a promise from an unqualified buyer risks a late refusal. Requiring a pre-qualification or a fast commitment reduces this risk.
Worked example: a triplex at $720,000 on the North Shore
Take a triplex listed at $720,000. The buyer files a promise conditional on financing at 80%, i.e. $576,000, with a $144,000 down payment. Here is how the condition can unfold — or derail.
| Scenario | Appraisal retained | Maximum loan (80%) | Outcome of the condition |
|---|---|---|---|
| Appraisal confirms the price | $720,000 | $576,000 | Condition removed without friction |
| Slightly low appraisal | $700,000 | $560,000 | Buyer covers $16,000 or renegotiates |
| Clearly low appraisal | $665,000 | $532,000 | Gap of $44,000: risk of withdrawal |
In the third scenario, a buyer who can neither cover the gap nor renegotiate will rarely remove the condition: the promise falls through and the plex returns to the market. An informed seller will have anticipated this by setting a realistic price and confirming, from the negotiation stage, that the buyer has the financial capacity claimed.
Sources: OACIQ — Annex F Financing · Éducaloi — Making an offer: 6 things to check.
The inspection condition: three possible outcomes
The building inspection is the second major condition. It protects the buyer against unpleasant surprises, but it also opens a renegotiation window that can work against an unprepared seller. According to the OACIQ, the broker "must recommend that the buyer have a full inspection of the property performed by a professional or a building inspector who holds professional liability insurance."
Outcome 1 — The buyer declares satisfaction
If the inspection reveals nothing deal-breaking, the buyer declares themselves satisfied with the results: the condition is fulfilled and removed. This is the ideal outcome for the seller. It is all the more likely when the plex has been well maintained and the maintenance records (roof, foundation, plumbing invoices) are available.
Outcome 2 — The buyer declares dissatisfaction and withdraws
According to the OACIQ, "once the inspection is carried out, the buyer may declare himself satisfied with the results — which means that the condition has been fulfilled — or declare himself not satisfied, in which case he must notify the seller that he is rendering his promise null and void by attaching a copy of the report." The buyer therefore cannot withdraw on a whim: they must produce the inspection report that justifies their dissatisfaction.
Outcome 3 — Renegotiation
Between the two extremes, the inspection often serves as a negotiation lever. Éducaloi notes that "a well-crafted clause can allow you, among other things, to reduce the purchase price or cancel your offer if the inspection reveals a serious problem." In practice, the buyer can propose a price reduction or request work before removing their condition. The seller must then choose between conceding, refusing (at the risk of withdrawal) or finding a compromise.
The defects that trigger the most renegotiations on a plex
- Roof at end of life or defective membrane on a flat roof
- Foundation cracks or signs of basement infiltration
- Outdated electrical system (fuse boxes, problem panels)
- Lead plumbing or corroded drain stacks
- Basement unit not compliant with municipal standards
The pre-sale inspection: the savvy seller's weapon
Having your own income property inspected before listing lets you know the defects in advance, correct or disclose them, and defuse renegotiation. A buyer who receives a pre-sale report and a list of work already done has far fewer arguments to push the price down when removing their inspection condition.
Sources: OACIQ — The inspection · Éducaloi — Cancelling an offer to purchase.
Reviewing leases and documents: the condition unique to income properties
Unlike the sale of a single-family home, the sale of a multiplex carries an additional and decisive condition: the review of the leases and financial documents. This is where the real value of the income property is decided, since its price rests on its rental income.
What the buyer actually reviews
The buyer of a plex does not merely read the leases: they verify the consistency between the advertised rents and the actual rents, the existence of deposits, renewal notices, recent increases, vacant units and the history of bad payers. A gap between the income declared at the sale and the reality of the leases can justify a renegotiation or a withdrawal.
| Document | What the buyer looks for | Impact on removal |
|---|---|---|
| Signed leases and annexes | Actual rents, term, special clauses | Confirms the building's income |
| Income-and-expense statement | Net profitability, operating charges | Validates the asking price |
| Tax and energy accounts | Actual charges to assume | Affects the profitability calculation |
| Invoices for major work | Maintenance and wear | Reassures or triggers renegotiation |
The 7-day deadline mechanism
The OACIQ form sets out a precise mechanism: the seller delivers the documents within a set deadline, then the buyer has seven (7) days following the expiry of that deadline to notify in writing if unsatisfied. If no notice of dissatisfaction is given within the deadline, the condition is generally deemed fulfilled. In other words, the buyer's silence works in the seller's favour — provided the documents were in fact delivered on time.
The mistake that costs the most
Delivering the leases and documents late, or incompletely, delays the start of the 7-day window and prolongs your exposure to the buyer's withdrawal. Each day of delivery delay is one more day your plex stays vulnerable. The seller who prepared everything in advance mechanically shortens the conditional period.
The location certificate: the condition too often forgotten
The location certificate is the document sellers neglect most, and yet it can delay a transaction by several weeks. Issued by a land surveyor, it describes the current state of the property: its boundaries, buildings, servitudes, encroachments and any non-compliance with municipal regulations.
The under-10-years rule
According to the Chambre des notaires du Québec, a location certificate must be less than 10 years old to be considered valid. This rule stems from the ten-year prescription set out in article 2917 of the Civil Code of Québec, which allows the acquisition of a right of ownership through the passage of time. A certificate more than ten years old generally forces the seller to order a new one, even if the property has not physically changed.
What makes a certificate expire before the deadline
The ten-year rule is not the only criterion. Even a recent certificate becomes unusable if the property was modified after it was issued: adding a shed, a pool, a fence, a garden shed, a parking space, or a renovation that changed the footprint. For a plex, converting a garage into a unit or fitting out a basement unit are classic cases that invalidate the certificate.
Checking your certificate before selling — the checklist
- Is the certificate less than 10 years old?
- Has the property been modified since it was issued?
- Does it describe servitudes or encroachments to resolve?
- Is it compliant with current municipal regulations?
- Should a new one be ordered now to avoid a delay at sale?
Sources: Chambre des notaires — Location certificate less than 10 years old · OACIQ — The importance of an up-to-date location certificate.
The deposit, the trust account and the refund
The deposit (or earnest money) is the sum the buyer pays as a sign of good faith. It is poorly understood by plex sellers, who sometimes believe they can keep it if the buyer withdraws. The legal reality is more nuanced and governed by precise rules.
Where the deposit goes
According to the OACIQ, earnest money received by a broker can only be deposited in the trust account of a permit holder. The buyer delivers the deposit to the broker designated as trustee, with the promise or within 72 hours of fulfilling the conditions. The sum remains held in trust until the notary requires it for the deed of sale, where it is then applied to the purchase price. The seller therefore does not directly receive this money during the conditional period.
The refund if the promise falls through
Crucial point: if the purchase promise becomes null and void because a condition was not fulfilled, the OACIQ provides that the trustee must immediately refund the deposit to the depositor, without interest, the trustee being able to require that the refund request be made in writing. In other words, when a suspensive condition causes the sale to fall through according to the rules, the seller cannot keep the deposit.
| Situation | Fate of the deposit |
|---|---|
| Conditions removed, sale concluded | Applied to the purchase price at the notary |
| Condition not fulfilled per the set mechanism | Refunded to the depositor, without interest |
| Dispute over the reason for withdrawal | May be held until agreement or ruling — consult a notary |
"If the purchase promise becomes null and void, the trustee must immediately refund the deposit to the depositor, without interest."
— OACIQ, on refunding deposits held in trustSource: OACIQ — Refund of sums received as deposits or earnest money.
Common seller mistakes during the conditional period
The conditional period is a moment when the seller of an income property can, without meaning to, worsen their own risk. Here are the most common mistakes and how to avoid them.
Mistake 1 — Taking the plex off the market too early
Believing that an "accepted" promise equals a concluded sale leads to refusing any further visits. Yet as long as the conditions are not removed, the sale can still fall through. Many sellers negotiate a clause allowing them to keep receiving offers until the conditions are removed.
Mistake 2 — Granting deadlines that are too long
A generous financing or inspection deadline looks courteous, but it prolongs your exposure. Each extra day is a chance for the buyer to change their mind or for something unexpected to arise. Short but realistic deadlines protect the seller.
Mistake 3 — Delivering incomplete documents
Delivering the leases piecemeal or omitting the income-and-expense statement delays the review window and gives the buyer legitimate grounds for dissatisfaction. A complete file from the outset closes that door.
Mistake 4 — Not documenting the removals
Without written follow-up, a seller can end up unclear on what has been removed and what remains. The OACIQ provides a Notice and follow-up on fulfilment of conditions form precisely to trace each step.
Mistake 5 — Giving in to renegotiation too quickly
Faced with an inspection report, some sellers cut the price by reflex. A prepared seller, armed with a pre-sale inspection and maintenance invoices, keeps control of the negotiation and defends the value of their plex.
The winning reflex
- Treat the accepted promise as conditional until the last removal
- Negotiate tight deadlines and have a documentary file ready in advance
- Document each removal in writing
- Renegotiate only from verifiable facts, not mere assertions
Source: OACIQ — Notice and follow-up on fulfilment of conditions.
Typical timeline of a plex's conditional period
For a seller, visualizing the sequence of steps helps with anticipation. Here is a representative timeline of a North Shore plex sale, from acceptance of the promise to the full removal of conditions. Actual deadlines depend on the negotiated clauses: they are given for illustration.
| Day | Step | Who acts |
|---|---|---|
| Day 0 | Promise accepted and signed by both parties | Seller and buyer |
| Days 0-2 | Delivery of leases and documents; deposit placed in trust | Seller / buyer |
| Days 1-15 | Financing application and appraisal of the property | Buyer and lender |
| Days 3-12 | Building inspection | Buyer and inspector |
| Days 2-9 | Document review (delivery deadline + 7 days) | Buyer |
| Days 5-20 | Notary's verification of the location certificate | Notary |
| End of period | Removal of the last condition: the sale becomes firm | Buyer |
| After | Signing of the notarial deed and handover of keys | Notary, seller, buyer |
What this timeline reveals
Two observations stand out. First, the conditions overlap: financing, inspection and document review proceed in parallel, which is why a well-run conditional period often fits within two to four weeks. Second, the last condition removed governs everything: no matter that three conditions are fulfilled, as long as the fourth stays open, the sale is not firm.
The central role of delivering documents on day 0
The timeline shows why preparing the file saves time. If the leases and income-and-expense statement are delivered on day 0 rather than on day 7, the review window ends sooner, and the overall removal of conditions arrives faster. Every day saved upstream shrinks the seller's window of risk.
How a seller can compress the timeline
- Gather and scan all documents before even receiving an offer
- Order a new location certificate upstream if it is more than 10 years old
- Negotiate tight financing and inspection deadlines
- Favour a pre-qualified buyer or a direct buyer who knows the market
Source: OACIQ — Proof of receipt and follow-up on conditions.
Informational content only. Does not constitute legal or tax advice. Conditions, clauses and deadlines vary with each promise and are governed by OACIQ rules and the Civil Code of Québec. Consult a notary or broker for advice specific to your situation.
