What is a conditional sale?

Quite simply, a conditional offer is an offer to purchase your home which is dependent upon some stated objective either happening, or not happening.

An offer that is “conditional upon a professional home inspection which is satisfactory to the buyer” means, I agree to by your home for the following price and terms provided that I am satisfied with the results of a home inspection.

Conditional offers are most common, and the most common conditions include approval of mortgage financing (even when a buyer has been pre-approved), a satisfactory home inspection, viewing and approving a Property Condition Disclosure Statement, and viewing and approving a municipal compliance report.

In most cases, the buyer commits to satisfy conditions and waive them in writing within one week of acceptance of an offer but sometimes conditions can remain on an agreement longer. For instance, if you agree to an offer which is “subject to the sale of the buyer’s existing home,” the buyer will likely request thirty to sixty days to fulfill the condition.

The standard Residential Contract of Purchase and Sale (offer to purchase) used in Saskatchewan states that the buyer must remove their conditions from the contract by the stated date, or the offer may be considered void at the seller’s option. If the buyer fails to remove their conditions within the stated time frame the offer documents provides for the buyer to receive a refund of their deposit. If they do remove their conditions within the prescribed time frame and then subsequently fail to complete the purchase, the seller is entitled to receive the deposit as the remedy for the default.

Once a conditional offer has been accepted you can count on us to keep you abreast of changes, challenges or progress as those things occur.

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