8 Contract Conditions For Homebuyers

Even though there could be many conditions that can be placed on a purchase contract by homebuyers, the majority of contract conditions include the following:

Contract conditions in an Offer to Purchase:

1. Financing: When the buyer needs to obtain a mortgage.

2. Inspection: This condition is placed so the buyer can have a home inspection conducted to ensure that there are no faults with the property.

3. Sale of buyer’s home: This condition is placed when a buyer needs to sell his home in order to buy this new home.

4. Lawyer’s approval: Condition is placed by the buyer, seller or both to get their lawyers’ approval on the purchase contract and to make sure everything they have discussed is properly stated in the contract.

5. Appraisal: Even though the banks do an appraisal before they secure financing on a home, a buyer may place this condition in case he is paying cash for a home or contributing a hefty down payment. This ensures that he is not over paying for a property.

6. Third party viewing: The name of the person is usually stated in this condition. This is where a buyer is looking for third party advice (e.g. Parents, spouse).

7. Condo documents: This is when a condo is being sold and the buyer or his lawyer reads through the documents to see if everything is in order (e.g. Bylaws, financial statements etc.)

8. Estoppel certificate: Exclusive to condo sales, this certificate shows the amount of condo fees, how they are assessed, whether they have been paid or not, and whom they are paid to.

These are just some of the conditions that can be placed on a property. A condition can essentially be anything that a buyer or seller needs in order to ensure the ideal circumstances when buying or selling a property.

Conditional offer on your home

A conditional offer depends on whether the respective conditions will be met. When any of the conditions are not satisfied, the buyer or seller (depending on who applied the condition), can back out of the agreement without any penalty.

Conditions allow home sellers and homebuyers to manage the risk when making a home purchase or sale. But be careful; unreasonable and excessive conditions may discourage sellers from accepting your offer.

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