When you are in the market for a new property, you may come across the term “sold subject to contract.” This phrase refers to a property that has been sold but the sale is not yet complete. In other words, the sale is subject to certain conditions being met before the property can officially change hands.
The conditions that need to be met may vary depending on the specific agreement between the buyer and seller. However, there are a few common conditions that are typically included in a sold subject to contract arrangement.
Firstly, the buyer will usually need to secure financing for the purchase. This means that they will need to obtain a mortgage or other funding to pay for the property. If they are unable to secure financing, the sale may fall through.
Another common condition is that the property must pass certain inspections. This could include a home inspection, a pest inspection, or any other inspections that are deemed necessary by the buyer.
It is also common for the sale to be subject to the buyer selling their own property. This means that the buyer may need to sell their current home before they are able to complete the purchase of their new home.
Once all of these conditions have been met, the sale can be completed and the property officially changes hands. Until then, the property remains sold subject to contract.
It is important to note that the terms of a sold subject to contract agreement can vary depending on the specific circumstances of the sale. As a result, it is crucial for both the buyer and seller to carefully review and understand the terms of the agreement before entering into it.
In conclusion, sold subject to contract refers to a property that has been sold but the sale is subject to certain conditions being met before the property can officially change hands. These conditions may include securing financing, passing inspections, and selling the buyer`s current property. It is important for both the buyer and seller to carefully review and understand the terms of the agreement before entering into it.