How are terms and conditions added to an offer?

What Are Terms and Conditions in an Offer?

Terms and conditions are added during the offer submission process to outline specific requirements or contingencies from either the buyer or the seller. These clauses help protect both parties and ensure that expectations are clearly defined before proceeding with the sale.

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Common Buyer Conditions

• Financing Condition
  Ensures that the buyer can secure a mortgage before committing to the purchase.

• Inspection Condition
  Allows the buyer to complete a home inspection to confirm the property’s condition.

• Sale of Current Home
  Makes the offer conditional upon the sale of the buyer’s existing property.

• Other Buyer Conditions
  Could include reviewing condo documents, confirming zoning, or obtaining home insurance approval.

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Common Seller Conditions

• Subject to Lawyer’s Approval
  The seller may include a clause that makes the offer conditional on legal review of the agreement.

• Subject to Original Offer Collapse
  If the seller has already accepted a conditional offer, this condition is used when accepting a backup offer:
  “The acceptance of this offer is subject to the collapse of the original offer that is already accepted.”

• Specified Closing or Possession Date
  The seller may propose a specific date for possession that better aligns with their move-out schedule.

• Other Seller Conditions
  May include restrictions on included items, repair responsibilities, or tenancy considerations.

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Including well-written conditions is essential to protect your interests and avoid misunderstandings during the transaction process.