Definition : Suspensive condition

A condition contained in a prior-contract that allows its validity to be suspended until a future and uncertain event that it provides for, such as obtaining mortgage financing, occurs. Thus, if the promisor-buyer fails to obtain the approval that will allow him to have a loan from a financial institution, he will in principle be "released" from his obligation to purchase.

 

Related articles


The preliminary contract is signed before the purchase of a new or to be built property. To be enforceable, a preliminary contract must, contain the designation of the parties, the identification of the targeted immovable and the price offered.
View more
Buying an apartment in a co-ownership is a major investment in a lifetime. To avoid being caught off guard during the process leading to your purchase, you should seek proper assistance.
View more
An offer to purchase is prepared before the purchase of an already built property contrary to new or to be built condos, in which cases, you will be shown a preliminary contract. Even though it is not compulsory under the Law, the offer to purchase is a necessary step on the path leading to a transaction for the majority of buyers. Generally in writing, it is the first step which leads to a deed of purchase. Prepared generally on a standard form by the real-estate broker, the offer to purchase is in reality a preliminary contract.
View more
When the time comes to sign an offer to purchase, certain elements of the sale may be outside your control. This happens when you must sell your present residence or if you must obtain a hypothecary loan before purchasing the new property. There are other intangibles, such as not having the information on hand to carry out a due diligence verification before the purchase.
View more
The declaration of co-ownership is intertwined with the purchase of an apartment held in divided co-ownership. A genuine "user's guide", this document defines the rules to be observed in the immovable, as well as its administrative and management guidelines. Before acquiring a condo, any careful buyer should, imperatively, read the declaration of co-ownership. He will thus be able to verify the extent of his obligations and duties and the limits to his ownership rights. He will be able to evaluate its terms and conditions and make a decision on buying or not.
View more