Quick Answer: A conditional sale means the buyer and seller have agreed to the terms of a home purchase, but the deal still depends on certain conditions being satisfied or waived by a specific deadline. Common conditions in Alberta include financing, a home inspection, condominium document review, or the sale of the buyer’s current home.
If you are shopping for a home in Lethbridge, you may see a property listed as conditionally sold. This does not necessarily mean the sale is completely finished. It means there is an accepted offer in place, but one or more conditions still need to be dealt with before the transaction can proceed.
What Is a Conditional Offer?
A conditional offer is an offer to purchase a home that includes specific requirements that must be met within an agreed period.
According to the Real Estate Council of Alberta, conditions need to be written into the offer, including how they will be satisfied and the deadline for doing so. If the conditions are not waived by the agreed deadline, the offer can become void.
Common Conditions When Buying a Home in Alberta
Some of the most common conditions include:
- Financing: Giving the buyer time to obtain final mortgage approval.
- Home inspection: Allowing the buyer to have the property professionally inspected.
- Condo document review: Giving a condominium buyer time to review important corporation documents.
- Sale of an existing home: Making the purchase dependent on the buyer successfully selling their current property.
Not every transaction will include the same conditions. The appropriate conditions depend on the property, the buyer’s situation, and the terms negotiated with the seller.
What Happens When the Conditions Are Removed?
Once the buyer has completed their due diligence and is satisfied that the conditions have been met, they can waive those conditions according to the terms of the agreement.
At that point, the purchase generally moves forward toward closing and possession.
This is an important stage in the transaction because removing conditions can leave the buyer legally committed to completing the purchase.
Does Mortgage Pre-Approval Mean You Can Skip a Financing Condition?
Not necessarily.
A mortgage pre-approval is not the same as final mortgage approval. RECA notes that final financing can still be affected by factors such as the property’s appraised value or changes to the buyer’s income, employment, credit, or debt.
Buyers considering an offer without a financing condition should understand the additional risk involved.
Can You Still Make an Offer on a Conditionally Sold Home?
Potentially. A conditional sale means an accepted offer already exists, so another buyer cannot simply replace it. However, circumstances can vary depending on the existing contract and whether its conditions are ultimately satisfied.
If you are interested in a conditionally sold property in Lethbridge, your REALTOR® can help you understand its current status and whether there are any realistic options to pursue it.
Conditional Sales Help Buyers Complete Their Due Diligence
Conditions can give buyers valuable time to confirm financing, inspect the property, review important documents, and make sure they are comfortable proceeding with one of the largest purchases they may ever make.
If you are preparing to buy a home in Lethbridge, understanding the conditions in your offer and the deadlines attached to them can help you make more informed decisions throughout the purchasing process.
