Conditional sale definition
/What is a Conditional Sale?
A conditional sale is an arrangement in which the seller retains title until the buyer meets a predetermined condition, such as sending the seller full payment. This arrangement is most common in real estate transactions, where the buyer makes a series of incremental payments to the seller over a period of time; if the buyer does not complete these payments, the seller can take possession of the property. In the meantime, the buyer can take possession of the property and use the premises. Alternatively, a sale might be conditioned on the buyer acquiring financing, the successful completion of a title search, or the completion of a home inspection.
In addition to real estate transactions, conditional sales agreements are also used for the sale of other physical assets, such as motor vehicles, machinery and equipment, office equipment, and furniture and fixtures.