What is a common condition that may be included in a real estate contract?

In a real estate contract, a common condition that may be included is "subject to inspection." This term indicates that the buyer's obligation to proceed with the purchase is contingent upon the satisfactory outcome of a property inspection. This condition is critical as it protects the buyer by allowing them to evaluate the property's condition and identify any potential issues before finalizing the transaction. If the inspection reveals unacceptable problems, the buyer typically has the right to either negotiate repairs, request credits, or even back out of the deal without penalty.

The inclusion of such a condition reflects the standard practice in real estate transactions, where both parties seek to minimize risk and ensure that the property meets certain standards before the sale is completed. This is especially important in real estate, where structural or mechanical defects may not be immediately apparent.

While agent commission, transfer fees, and seller disclosures are also relevant aspects of real estate transactions, they do not function as conditions that would affect the enforceability of the contract based on the inspection's outcome. Agent commissions are typically predetermined and do not change based on property conditions, transfer fees are related to transactional costs rather than property condition, and seller disclosures are meant to inform the buyer rather than condition the sale.