Conditional sale

header-Conditional sale

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.