Suspensive conditions are conditions in a sale agreement that must be met before the sale can be finalised. The suspensive condition will state that the agreement is conditional upon the occurrence of a certain event. If the event does not occur, the sale will not proceed.
Some common examples of suspensive conditions in a property sale agreement include:
- The buyer securing financing: this is a condition that the buyer must meet before the sale can proceed. If the buyer is unable to obtain financing, the sale will not proceed.
- The sale of the buyer’s current property: if the buyer needs to sell their current property in order to finance the purchase of the new property, the sale agreement may include a condition that the buyer’s sale of their current property must occur before the purchase can proceed.
- The approval of building plans: if the buyer intends to renovate or extend the property, the sale agreement may include a condition that the buyer’s building plans must be approved by the relevant authorities before the sale can proceed.
It is important to ensure that suspensive conditions are clearly stated in the sale agreement and that they are reasonable and achievable. Failure to meet a suspensive condition can result in the sale falling through.
