It is imperative, both sellers and buyers understand the difference between conditional and unconditional offers. Conditional Offers are made by the majority of buyers. This is an offer subject to certain conditions being met by either party in a given timeframe. As with other parts of an Offer and Acceptance contract, conditions can be negotiated between the buyer and the seller.
Some examples of conditions may include but are not limited to-
Finance – the agreed contract is only valid if the buyer can secure a loan for the purchase of the property.
Subject to Sale – the agreed contract is only valid if the buyer other property is sold within a given timeframe (this is usually to free some capital for the offer at hand). Subject to a satisfactory building and/or termite report – at the buyers expense the offer may be subject to a professional opinion that the building is structurally sound and it is free of live termite activity.
All conditions must be met in a specific timeframe and agreed on by both parties.
Unconditional Offers occur when the buyer offers the seller cash with no conditions on the purchase of a property. These offers are extremely appealing to a seller as there is no reason for the buyer to pull out of an accepted contract.
Although all contracts differ slightly in their finer detail, these are the most common examples of Conditional and Unconditional offers.
If you would like more specific examples or we are able to assist you in any other way, please give us a call at First National Real Estate Busselton and any one of our helpful staff will be more than happy to answer any questions you may have in regards to buying, selling, renting or investing! Previous page