Conditions Precedent

Definition

Contingencies in a purchase contract that must be satisfied before the buyer is obligated to close, like inspections, appraisals, and the seller not lying about the foundation.

Example Usage

The offer included conditions precedent for a professional inspection and satisfactory appraisal.

Origin

Contract law terminology

Fun Fact

Conditions precedent are a buyer's primary protection against discovering catastrophic problems after commitment.

Source: American Bar Association Real Property Section

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Listing agreement

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homeowner

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warranty

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Contingent Offer

An offer with conditions that must be met—basically 'I'll buy this if it doesn't fall apart when I inspect it.'

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