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The Conditional Period

Once an Offer to Purchase has been accepted, the agreement
enters the conditional period. Now is the time when all of those
conditions laid out in the contract must be fulfilled in order for
the deal to go forward. Once all conditions are filled, the deal
is said to be firm.

Read on below for more information on common conditions!

Prev: Accepting an Offer

Next: Closing


 

The Conditional Period

Once the offer is accepted the conditional period begins. All of the conditions in the offer must be met before it can become firm and the deal finalized. Most offers contain the following conditions:

  • Finance: Mortgage approval for the purchase will need to be obtained by the buyers for this condition to be met.
  • Appraisals: Expect an appraiser from the lender’s company to review your property and verify that the sales price is appropriate.
  • Inspection: A professional home inspector will thoroughly check the home and let the buyers know if there is anything to be concerned about. The inspection will be scheduled by the buyer’s agent.
  • Insurance: Buyers who are obtaining a mortgage, are required by their lender to purchase insurance on the property.
  • And sometimes:

  • Sale of Purchasers Property or SPP: If your buyers are purchasing a property and still need to sell their current property they might make this condition part of their offer. Your agent will guide you and help you decide whether to accept an offer with this condition or not, and what type of timeline you will allow if you do accept it.

Depending on the outcome of the inspections, one of two things may happen:

  • Either each milestone is successfully met and the conditions will be removed, bringing you one step closer to the closing; or
  • The buyer, after reviewing the property and the papers, requests a renegotiation of the terms of the contract (usually price).

How do you respond objectively and fairly to the buyer when a renegotiation is demanded, while acting in your best interests? This is when a professional listing agent can make a real difference in the outcome of the transaction. Having dealt with various property sales in the past, we guarantee our expertise and total commitment to every customer, no matter what their situation is.

When all of the negotiations have concluded, conditions have been met and the appropriate paperwork is signed and submitted the offer is considered firm.

A Firm Offer

Now that all of the conditions have been met the offer is firm, congratulations you just sold your house! All that’s left to do is to get ready to move on closing day.