Trying to get all your finances in order to buy a home might prove frustrating. You may have trouble getting everything together as quickly as you want, and you could fear losing the house to a better-prepared buyer. This is where a conditional sales agreement may be of assistance.
With this kind of transaction, you might obtain a home much quicker than with a traditional real estate purchase, although there are strings attached to this arrangement.
The conditional use of a home
By entering into a conditional sales contract, you acquire the right to use a property although you lack complete ownership of it. The title is still not in your possession, not until you complete whatever conditions are necessary.
Such conditions usually involve completing payments on the home. However, you may also specify that the property passes an inspection prior to getting the title. In addition, the seller might insist that you receive lender approval for a mortgage as a requirement. Any failure to fulfill a condition can result in you losing the home.
The merits of a conditional sales agreement
With this kind of agreement, you do not have to worry that the seller will entertain a stronger offer from another buyer. Also, there may be title issues that will take a while to sort out, but you may use the home in the meantime.
However, a conditional purchase agreement is usually more complicated than a typical home purchase. Depending on the issues that need resolution, the contract may be lengthy and even confusing. Also, an ambiguous contract might end up legally invalid if it comes under a legal challenge.
Obtaining the chance to get a foothold in a home you want is an opportunity worth exploring. Still, it is also a time to examine your situation carefully so you know you can complete all the necessary requirements to eventually receive full ownership.
