Real Estate Term
Conditional Offer
An offer to purchase that includes specific conditions that must be met before the sale is finalized.
What is Conditional Offer?
A conditional offer is an offer to purchase that only becomes binding once certain conditions are satisfied, such as arranging financing, completing a home inspection, or reviewing condo documents. It protects the buyer by giving them a set period to confirm those items and to walk away — usually with their deposit returned — if a condition can't be met. In competitive markets buyers sometimes reduce or waive conditions to make their offer stronger.
Frequently asked questions
Related terms
Counter-OfferA response to an offer that proposes different terms, essentially rejecting the original offer.Home InspectionA thorough examination of a property's condition by a qualified inspector before purchase.Subject to FinancingA condition in an offer that makes the sale contingent on the buyer obtaining financing.DepositA sum of money paid as part of an offer to purchase, held in trust until closing.WaiveTo voluntarily give up a right or condition, such as a condition in an offer.Offer to PurchaseA formal proposal to buy a property at a specified price and terms.
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