Understanding the Conditional Promise to Purchase

Buying or selling a home is a big decision, and a Promise to Purchase is a key step in the process. This legally binding document outlines the buyer’s offer, including the price, conditions, and deadlines. But what happens when an offer comes with conditions?

What is a Conditional Promise to Purchase?

A conditional Promise to Purchase means that the sale will only go through if certain requirements are met. The most common conditions include:

• Financing: The buyer must secure a mortgage approval.
• Inspection: The sale depends on the results of a home inspection.
• Document Verification: Ensuring all legal and financial documents are in order.

Each condition has a deadline, and if not met, the offer may be withdrawn without penalty.

The Right of First Refusal

In some cases, a buyer might need to sell their current home first before purchasing a new one. This can make their offer less competitive. However, they can include a right of first refusal clause, allowing the seller to keep the property on the market. If another buyer submits an offer, the first buyer gets a chance to remove their condition and proceed with the purchase.

Why It’s Important to Work with a Real Estate Broker

A Promise to Purchase is more than just paperwork—it can make or break a real estate deal. Every clause must be carefully structured to protect your interests. Whether you are buying or selling, having an experienced real estate broker on your side ensures a smooth transaction.