Condition
Definition and meaning of Condition in real estate.
A condition is a provision in a real estate contract or deed that makes the parties' rights or duties dependent on the occurrence of a future event.
In more detail
If a condition is not met, the affected party may be excused from performing their obligations under the contract without penalty. In real estate transactions, conditions are often referred to as contingencies, such as securing financing or passing a home inspection. Under property deeds, conditions can also restrict how a property is used, and violating a deed condition could potentially result in the property reverting to the seller. Understanding these provisions is critical because they dictate when a contract becomes legally binding or voidable.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Also known as | Contingency, contract provision |
| Watch out for | Unclear deadlines and vague language |
| Applies to | Purchase agreements and property deeds |
A buyer submits a purchase contract containing a condition that the transaction will only close if the buyer sells their current residence within a specified timeframe.
Frequently asked questions
What is the difference between a condition and a covenant?
A covenant is a promise to perform or not perform a specific act, whereas a condition is a requirement that must be satisfied for a contract or title transfer to remain valid.
Can a buyer waive a condition in a real estate contract?
Yes, the party who benefits from a specific condition can typically choose to waive it, allowing the contract to proceed without that requirement being met.
Related terms
Sources & references
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