What Is a Contingent Conditional Contract in Real Estate

A contingent conditional contract is a type of contract used in the real estate industry that makes a sale subject to certain conditions being met. Essentially, it means that a buyer can make an offer on a property, but the sale will only go through if specific conditions are met.

Contingent conditional contracts are commonly used when a buyer needs to sell their existing property in order to purchase a new property. In this case, the sale of the new property is contingent upon the sale of the buyer`s existing property. If the buyer is unable to sell their existing property within a certain time frame, the sale of the new property is canceled.

Other conditions that may be included in a contingent conditional contract include the buyer obtaining financing, the property passing inspections, or the property being appraised at a certain value. These conditions are typically outlined in the contract and must be met before the sale can be completed.

The advantage of using a contingent conditional contract is that it provides protection for both the buyer and seller. For the buyer, it ensures that they will not be forced to purchase a property they cannot afford or that does not meet their needs. For the seller, it provides assurance that the sale will only go through if certain conditions are met, reducing the risk of a failed sale.

However, there are also potential drawbacks to using a contingent conditional contract. For example, if the buyer`s existing property does not sell within a reasonable amount of time, the seller may miss out on other potential offers. Additionally, if the conditions outlined in the contract are not met, the sale may be cancelled, which can be frustrating for both parties.

Overall, a contingent conditional contract can be a useful tool in real estate transactions, particularly in situations where certain conditions must be met for the sale to be completed. However, it`s important to carefully consider the potential drawbacks before using this type of contract and to ensure that all terms and conditions are clearly outlined in the contract to avoid any misunderstandings.