What Does Sold Conditionally Mean In Ontario Real Estate?
A "sold conditional" status in Ontario real estate refers to a situation where a property has been conditionally purchased by a buyer, but the sale is still subject to certain terms and conditions being met before it can become final. This is different from a property being "sold firm," where the sale is considered final and binding once the agreement has been signed by both parties.
In a conditional sale, the buyer and seller will have agreed on the purchase price and other important details, but the sale is contingent on certain conditions being met within a specific timeframe. These conditions could include the buyer obtaining financing, the property passing a home inspection, or the seller finding suitable housing.
It's important to note that a "sold conditional" status does not guarantee that the sale will go through. If the buyer is unable to meet the conditions specified in the agreement, they may choose to walk away from the deal, and the seller is free to continue marketing the property to other potential buyers.
In Ontario, it is common for real estate agents to use a standard form known as the Agreement of Purchase and Sale when negotiating the terms of a real estate transaction. This form outlines the terms and conditions of the sale, including any contingencies that must be met before the sale can become final.
It is also common for real estate transactions in Ontario to include a due diligence period, during which the buyer has the opportunity to review all relevant information about the property, such as title and zoning documents, as well as perform a home inspection. This period is typically 30 to 90 days, and it is during this time that the sale is considered "sold conditionally."
It is important for both buyers and sellers to understand the implications of a "sold conditional" status and to consult with a real estate professional if they have any questions or concerns. For buyers, it is important to ensure that they have a clear understanding of the conditions that must be met and the timeframe for meeting them. For sellers, it is important to understand the risks associated with accepting a conditional offer, as there is always the possibility that the sale will not go through.
The term "sold conditionally" in Ontario real estate refers to a situation where a property has been conditionally purchased by a buyer, but the sale is still subject to certain terms and conditions being met before it can become final. It is important for both buyers and sellers to understand the implications of a conditional sale and to consult with a real estate professional if they have any questions or concerns.