– Conditional On Sale Explained –
Conditional on Sale — what does it mean & what do you need to know?
As a Buyer this gives you the opportunity to lock in a price & agreeable terms for the purchase of your next home, while still allowing you time to sell your house.
As a Seller this means that you are conditionally sold & that the Buyer has not removed all conditions (aka firmed up). A well written Condition Of Sale will allow you to continue to market your home to other Buyers, meaning, you could draw in another offer!
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Conditional On Sale & everything you should know!
Imagine you’ve decided you want to sell your house & you’re deciding which road you should take
Do you wait to list until you’ve found your next home, or should you list now & then look?
The answer?
Well, it’s highly dependent on what your specific circumstances are…
for instance, if you’re home needs a lot of work, you’d wait to list while you do the work… or if you’ve got a very specific home in mind, you should probably look first…
The beautiful thing about the market we’re in now is that Sellers are often willing to consider selling their home Conditional on Sale.
What this means is that you could buy a home contingent on your current house selling.
This opens up the possibilities & options you have at your disposal!
Let’s say you’ve found your next home & you want to put an offer on it, but you’re worried about how quickly your home will sell.
You’ve got 2 options — you can either take a chance & ask for a long closing, ie. 90 days. (This gives you a chance to sell your home but, as closing approaches, you may feel pressure if it hasn’t already sold)
Alternatively, you can offer to buy the home based on your house selling.
The condition that does the later, gives you a predetermined amount of time to try to sell your house. (You can feel that same pressure here, but you aren’t locked into buying the home so you have the ability to walk away & get your deposit back in full). Now there is one catch… the Seller is allowed to continue to actively sell their home to other possible buyers.
If another offer comes in & essentially tries to “bump” your original offer, you’ll have some additional time to consider if you should waive your condition on the sale of your house. If you remove the condition, its official & you’re the proud new owners! If you decide it’s not going to work, as much as you wish it would, you can walk away from the deal & get your deposit back in full.
This is referred to as the escape clause & it’s an important part of a balanced & fair condition.
So, now that you know all about Condition of Sales in Ontario, you can find out about the other most common conditions… like Financing, Home Inspect, Status Certificate, & more!
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The Edwards Team Of Todd Real Estate Ltd., Brokerage
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