A conditional sale is a transaction where the seller and buyer have agreed upon a number of conditions that must be satisfied or fulfilled by one or both parties prior to the offer being “firm” or an offer with “conditions satisfied”.
Frequently Asked Questions (FAQs)
Question 1: What is a conditional sale in real estate?
In real estate, a conditional sale is a transaction where the seller and buyer have set conditions. These conditions may include a satisfactory home inspection report, financing, etc. When a property is conditionally sold, the sellers cannot accept other offers.
Question 2: Can you back out of a conditional offer?
Absolutely. A buyer can withdraw from a conditional sale if their conditions are not satisfied by the due date. A buyer can also be removed by the seller for the same reason. A buyer can also back out if a condition of the offer is satisfied, but not necessarily to the satisfaction of the buyer, for example, a financing condition is not satisfied unless the buyer is satisfied with the mortgage they were able to obtain on the property.