Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
Conditions of sale are terms of an agreement that both the buyer and the sellermust agree upon. In real estate transactions, a buyer may choose to invest in a property if the seller caters to a specific condition. For example, a buyer may choose to buy a house with the term that it will go through a thorough professional inspection before the purchase.
Conditions of the sale lead to a quick sale and thus save a great deal of time for bothparties. Thiskind of offers depend onseveral factors. Such offers allow the buyer to protect the property while the seller takes care of the condition. Otherwise, the seller can sell it to another interested client.
There are many occasions when applying conditions of sale becomes paramount. Some of the situations in which a seller can offer a conditional sale of their property are:
• Selling of the Existing Home
A buyer may have to sell their existing property tobuy a new home. This condition will apply if the buyer has invested their assets in their current residence. For example, selling the current home may become necessary to pay the new house down payment.
• Receiving Financial Approval
Sellers may offer a conditional sale if they want bank approval for a property mortgage. Here, if the attempt fails, it terminates the conditional offer. For instance, the bank estimation of the property may be lower than the price settled upon by the buyer and the seller.
Here, the mortgage loan will not be able to cover the entire selling price. In such a scenario, the buyer will have to put up with the gap between the bank financing and the selling prices.
