Dear Patricia;

What does it mean if a house is sold conditionally?

Nicholas, Etobicoke

Dear Nicholas;

What a great question! What many people don't understand is that once each
party has signed the documents in an Agreement of Purchase and Sale, the
deal is legally binding. A home that is "sold conditionally" is indeed,
"sold", pending conditions to be met at a subsequent date. Common conditions include, but are not limited to: financing, home inspection, and in the case of condominiums, the obtaining and lawyer's approval of a status
certificate. Once all of the conditions have been waived, the sale of the
home is firm. Properties "sold conditionally" are very common, because
often, purchasers need time to do things such as receive official
documentation from financial institutions regarding mortgage financing -
things that can't always be done before the Offer to Purchase has been
made.

Patricia