What does 'Sold subject to conditions' actually mean?

Perhaps you’ve found a property you’re interested in, only to see that it’s marked as "sold subject to conditions." But what does this actually mean, and how might it impact your chances of securing the property?

What Does 'Sold Subject to Conditions' Mean?

"Sold subject to conditions" indicates that a purchase agreement has been signed, but the sale is not yet final. There are specific contingencies included in the contract, which allow the buyer to cancel the purchase under certain circumstances. The most common contingencies include:

• Financing Contingency
  The buyer typically has 6 to 8 weeks to secure a mortgage. If the financing cannot be arranged within that time frame, the buyer has the right to cancel the purchase.

• Structural Inspection Contingency
  If a structural inspection reveals significant defects or costly repairs, the buyer can decide to back out of the agreement.

• Sale of Existing Property
  Sometimes the purchase is contingent on the buyer selling their current property. If the buyer fails to sell their home within the agreed-upon period, the contract may be canceled.

What Does This Mean for Your Chances?

Even though the property is marked as "sold subject to conditions," the sale is not final. There is still a chance that the deal may fall through—for instance, if the buyer is unable to secure financing or if issues arise during the structural inspection. In such cases, it is wise to express your interest to the real estate agent. If the current purchase does not proceed, you might be next in line.

How Long Does the Conditional Period Last?

The conditional period typically lasts 6 to 8 weeks, giving the buyer time to meet the contingencies outlined in the agreement. After this period, the sale becomes final unless the buyer opts to cancel within the specified time.

What Should You Do?

If you’re interested in a property marked "sold subject to conditions," it’s important to act quickly. Contact the real estate agent and let them know you’re interested. This way, you may still have an opportunity to purchase the property if the current deal falls through.

Conclusion

"Sold subject to conditions" means the property is not yet officially sold. For you, this could mean there’s still a chance to secure it. Be proactive and communicate your interest to the agent to maximize your chances of being next in line should the sale not go through.