Conditional sale

Short description: Type of real estate transaction

A conditional sale is a real estate transaction where the parties have set conditions.[1][2]

A standard real estate transaction usually begins when a prospective purchaser submits an offer to purchase to the vendor of a property. As in a standard offer, a conditional offer sets out the terms of the sale such as the purchase price, the date of closing, the names of the parties, and the amount of any required deposit, but it also stipulates various conditions which must be met in order for the contract to be binding on the parties. These conditions may include approval by a co-purchaser, financing acceptable to the purchaser, the receipt and review of a survey showing that the buildings on the property comply with local zoning regulations, a title search showing no unacceptable liens or encumbrances, confirmation from the current mortgagee that the property is not in foreclosure, and the like. If the offer is accepted by the vendor, the offer to purchase will become a contract binding on the parties when all conditions are satisfied.

An alternative to a conditional sale is an invitation to treat. Unlike a conditional sale, an invitation to treat does not become binding upon satisfaction of any conditions. Issues arise as to the distinction between actions which constitute an offer or an invitation to treat, especially when the intentions of the parties are not clearly specified at the time.

## References

1. ↑ LaSalle, Jones Lang (2006-08-11) (in en). The Little Book of Real Estate Definitions. John Wiley & Sons. pp. 29. ISBN 978-0-470-82211-1. https://books.google.com/books?id=UG8mjKSihkQC.
2. ↑ "Conditional sale" (in en). https://www.law.cornell.edu/wex/conditional_sale.

* v
* t
* e

Real estate

* Property
* Tertiary sector of the economy

By location|

* Bangladesh
* China
* Italy
* Kenya
* Pakistan
* Puerto Rico
* Russia
* South Korea
* United Kingdom

Types|

* Commercial property
* Commercial building
* Corporate Real Estate
* Extraterrestrial real estate
* International real estate
* Lease administration
* Niche real estate
* Garden real estate
* Healthcare real estate
* Vacation property
* Arable land
* Golf property
* Luxury real estate
* Off-plan property
* Private equity real estate
* Real estate owned
* Residential property

Sectors|

* Property management
* Real estate development
* Real estate investing
* Real estate flipping
* Relocation

Law and regulation|

* Adverse possession
* Chain of title
* Closing
* Concurrent estate
* Conditional sale
* Conveyancing
* Deed
* Eminent domain
* Encumbrance
* Foreclosure
* Land law
* Land registration
* Leasehold estate
* Lease
* Property abstract
* Real estate transaction
* Real estate contract
* Real property
* Rent regulation
* Severance
* Torrens title
* Zoning

Economics, financing
and valuation|

* Asset-based lending
* Capitalization rate
* Effective gross income
* Gross Rent Multiplier
* Hard money loan
* Highest and best use
* Investment rating for real estate
* Mortgage insurance
* Mortgage loan
* Real estate derivative
* Real estate economics
* Real estate bubble
* Real estate valuation
* Rental value

Parties|

* Appraiser
* Buyer agent
* Buyer broker
* Chartered Surveyor
* Exclusive buyer agent
* Land banking
* Landlord
* Moving company
* Property manager
* Real estate broker
* Real estate entrepreneur
* Real estate investment club
* Real estate investment trust
* Real property administrator

Other|

* Companies
* Eviction
* Gentrification
* Graduate real estate education
* Green belt
* Indices
* Industry trade groups
* Land banking
* People
* Property cycle
* Real estate trends
* Undergraduate real estate programs
* Urban decay
* Urban planning

* Category
* Commons
* List of topics

0.00

(0 votes)

Original source: https://en.wikipedia.org/wiki/Conditional sale. Read more

|

Retrieved from "https://handwiki.org/wiki/index.php?title=Finance:Conditional_sale&oldid=3848001"
*[v]: View this template
*[t]: Discuss this template
*[e]: Edit this template