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Subject removal is the point in an Alberta or BC real estate transaction when a buyer formally confirms, in writing, that all conditions in the purchase contract — financing, inspection, and similar clauses — have been satisfied or waived, making the deal firm.
A purchase contract with subjects isn't binding until those conditions are met or waived by their stated deadline. The financing subject specifically is normally only removed once the mortgage broker or lender has issued a firm, unconditional commitment — a conditional approval with outstanding items isn't enough to remove it responsibly.
If subjects can't be removed by the deadline and no extension is agreed, the contract can lapse, and depending on its terms, the seller may be entitled to keep the buyer's deposit. That's why the timing of a mortgage approval — not just whether it eventually comes through — directly protects the buyer's money.
Regional term: "subject removal" is the standard language in Alberta and BC contracts; other provinces describe the same idea as a "conditional" offer becoming "firm."
Financing subject specifically: it's normally removed only once financing is fully approved, not merely conditionally approved pending outstanding items.
Deadline-driven: subjects carry a specific removal date in the contract; missing it without an agreed extension can let the other side treat the deal as void.
Deposit exposure: failing to remove subjects in time can put the buyer's deposit at risk, depending on the contract's terms.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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