Utah Conditional Sales Contract

State:
Multi-State
Control #:
US-01690-AZ
Format:
Word; 
Rich Text
Instant download

Description

This form is a sample conditional sales contract for the sale of goods owned by one party by a seller to third parties, but various conditions protecting owner's interest apply. Adapt to fit your circumstances.
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FAQ

Broadly, a conditional contract is a contract that is subject to one or more conditions in the contract of sale. If a condition in the contract is not met, then either one or both of the buyer or seller will be able to terminate the contract.

What Is a Conditional Sales Agreement? A conditional sales agreement is a financing arrangement where a buyer takes possession of an asset, but its title and right of repossession remain with the seller until the purchase price is paid in full.

The seller can back out for reasons written into the contract, including (but not limited to) contingencies. The buyer is in breach of the contract. If the buyer is ?failing to perform? ? a legal term meaning that they're not holding up their side of the contract ? the seller can likely get out of the contract.

This is a legally binding Real Estate Purchase Contract ("REPC"). If you desire legal or tax advice, consult your attorney or tax advisor.

For example, the buyer has specific obligations called contingencies, which include things such as loan approval, home inspection, and a home appraisal. If the buyer fails to meet these contingencies by a designated date, the seller can cancel the agreement and then accept another offer.

Yes, you can, if your contract has the right contingencies built in and you don't wait too long. The seller can, too. Your contract to purchase the home likely includes a contingency clause that states both the buyer, as well as the lender, must sign off on the home inspection and the appraisal.

Conditional contracts are used to add conditional terms to the exchange of contracts. Typically they are used when buying or selling land. Unconditional contracts mean the buyer and seller are legally obligated to exchange contracts without any conditions, such as a cooling-off period or survey results.

You can back out of a conditional offer without penalty if the criteria is not met. In a seller's market, buyers have less negotiating power and can't demand many conditions.

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Utah Conditional Sales Contract