Terms and Conditions are represent quite different intentions on an offer to purchase. The way to remember is to ask how does it affect the out come of the transaction. If it is something that may hinder the purchase should you not be able to meet its requirement, then it is a “subject to” the purchase and become a condition to the sale of the home. A Term would be defined as something you would want the seller to complete as part of the closing process and should not delay the transaction in any way up until the closing date or sometimes even extend beyond it depending on reasonable time to complete.
- Conditions protects you and communicates to the seller that you’ll need time to complete proper due diligence.
- Common conditions include subject to Financing, Home Inspection and Review of Condominium Documents.
- Alternative conditions could include subject to Sale of Buyer’s Home, Pet approval, secondary person’s approval or review of additional documents such as RMS or RPR reports.
- Any agreement between all parties have to be in writing for it to be enforceable. A term outlines this agreement and holds the party responsible for completing the agreed upon actions.
- Written Terms have to be written in a way so that it is enforceable by a court of law. Enforceability increases greatly if there is documentation supporting the desired action. Clear language, outlined action items and accountability should be presented.
- Should any issues arise where terms have not been met, buyers can protect themselves early by outlining “what happens if’s” scenarios if terms are not met.
