What Happens at the End of the First of Two Conditions?

Question:

If you have two conditions in an offer and they have two different deadlines – if you miss the first one, is the deal dead or are you still have the option to fulfill the second?

Answer:

It depends upon whether the first condition was written as a condition subsequent or a condition precedent.

Written as a condition precedent (which is commonplace) the deal becomes “null and void”.

Written as a condition subsequent, you just move on to the second one.

Going ahead is always problematic.

There are a few correct ways to document the second deal. They are legal and will keep you out of trouble. Even bad paperwork, trying to re-use the old documents might work, but will still leave you exposed to disciplinary action. This is where in addition to the documents you have to tell a story about what the parties intended.

Mutual Releases, redirection of the deposit and a brand new Offer might be the best.
Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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