Conditional Sale
Definition
- When a property for sale becomes conditionally sold (C/S), this implies that the sellers have accepted an offer from a buyer conditional upon the seller and/or buyer being able to fulfill certain set out conditions. These conditions could include the buyer being able to obtain a satisfactory home inspection report, secured financing or the sale of a buyer's property. Commercial properties may have additional conditions. When a property is conditionally sold, the sellers cannot accept other offers.
Synonyms
requirement, agreement, stipulation, obligation, condition of sale
Acronyms
C/S
Related Terms and Acronyms
- Conditional Commitment — Definition,
- A promise by a lender to make a loan if the borrower meets certain requirements.
- Conditional Sales Floater — Definition,
- Insurance that covers losses on property sold conditionally or on an instalment plan.
- Contingency — Definition,
- A condition that must be met before a property sale can be completed, such as a home inspection or mortgage approval.
- Due-on-sale Clause — Definition,
- A condition of a mortgage that states that the loan must be paid when the house is sold. Commonly used in reverse mortgage lending.
- Escrow — Definition,
- An account in which money for property taxes and insurance is held until paid. Money is added to the account every time a mortgage payment is made.
- Housing-equity Partnership — Definition,
- An arrangement in which one buyer lives in a home and the other has an ownership stake as an investment. The partners split the capital gain after the property is sold.
- Sale-leaseback — Definition,
- A transaction in which the seller transfers the title to the buyer, then rents the property from the new owner. Generally not done in Canada, more an American practice.
- Sales Contract — Definition,
- A legal written document that details the agreed upon conditions between a seller and a buyer regarding the sale of a specific property. Also called an "Agreement of Sale."
