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Frequently Asked Questions

What is a condition precedent?

A condition precedent is a condition that you can attach to a sales agreement or offer. The sale does not become final until that condition is met.

A common example is a condition precedent for obtaining a mortgage loan. For example, you can agree that the purchase will only go through if you secure a loan for the agreed-upon amount by a certain date.

If the condition is not met within the agreed time frame, the sales agreement may be terminated in accordance with the terms set forth therein without further consequences.

It is important that a condition precedent be clearly and specifically defined in the offer or the sales agreement. If you have any doubts, be sure to consult your notary for guidance.

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The Living Stone Dictionary