Certain obstacles can emerge with
conditional offers, particularly for the
seller. For example, in the sale of
property, the seller, when agreeing to a
condition may have to place the property
back on the market if the condition is not
fulfilled or waived by the buyer. For some
conditions, this problem is not a major
factor. It is unlikely that a competent
salesperson would negotiate an offer
conditional upon arranging a first mortgage
unless:
There was reasonable assurance that
a lender would consider the buyer’s
mortgage application; and
The time limit involved to secure
the approval did not involve a lengthy
period
With respect to the sale of the buyer’s
property, the condition is usually for a
longer period. Further, the decision to sell
the property rests with that buyer during
the conditional period. In most instances,
an escape clause (also referred to as a time
clause ), usually improves the acceptability
of such conditions by the seller. The
following clause requires that the buyer
remove all conditions within a stipulated
time period, failing which his/her offer is
null and void.
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