What is meant by the term "condition of sale" in real estate?

The term "condition of sale" refers to specific criteria that must be fulfilled for a property transaction to be completed. This may include various stipulations agreed upon by the buyer and seller, such as the buyer obtaining financing, passing a home inspection, or the seller completing repairs before closing. These conditions serve as protections for both parties, ensuring that certain expectations are met before proceeding with the sale.

In contrast, the pricing model of the property does not directly relate to conditions that need to be met before closing, nor does it signify any specific requirements tied to the transaction itself. Similarly, the location of the property is a factor in determining its market value and appeal, but it does not encompass the contractual obligations or requirements necessary for the sale. Lastly, while the financial assessment of the buyer is important in the overall transaction process, it does not constitute a condition of sale unless it is formalized as a requirement within the sale agreement, such as obtaining a mortgage approval. Hence, the correct understanding of "condition of sale" is its definition as criteria necessary for the finalization of the transaction.