The legalities of any Real Estate transaction can be limitless. If you could find a vendor that would accept it, you could technically make a transaction conditional on you teaching your dog to do cart wheels. There are a few basic elements that make up a condition and anyone can master these individual elements.
Just like a great story a condition has a beginning, middle and an end. The wording is similar in all conditions with subtle variations depending on the purpose of the condition.
All conditions start with essentially the same phrase. Under no circumstance start a condition without a similar phrase. The phrase is, “This offer is conditional upon…” You must understand that you need to make it crystal clear that the offer has an out for you. There is a loophole so you can make a dignified retreat from the deal if something goes wrong.
The body of the offer is the activity that needs to be completed so you can fulfill the condition. For instance “…training my poodle to do cart wheels…” You need to identify what the offer is conditional upon.
Next you must have a time frame included in the condition. The activity cannot be done whenever you want their needs to be boundaries and parameters that must be followed. Without a specific time the deal for your home may never close because the conditions are never fulfilled.
Finally the consequence of the failure to accomplish the task set out in the condition. “…If this condition is not fulfilled this offer will be null and void and the buyers deposit shall be returned in full without deduction.” In this instance the consequence is the house isn’t sold and the buyer gets their deposit back in full.
Finally are condition would appear like this when it was completed.
“This offer is conditional upon the buyer training his poodle to do cart wheels no later than October 15, 2007. This condition may be waived at any time at the sole discretion of the buyer and if this condition is not fulfilled this offer will be null and void and the buyers deposit shall be returned in full without deduction.”
The final wording of the condition meets all the requirements for a proper condition. It has a beginning, middle and an end. It is identified as a condition and a time frame for completion has been provided. Notice that ownership of the condition is on the buyer to remove the condition from the offer. This is a very basic condition and can obviously be expanded upon in order to make the condition more binding.
