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Definition of Conditional Offer







What is a "conditional offer"? What does the term "conditional offer" mean?

A "conditional offer" can be made in many different situations, ranging from real estate transactions to job offers.

A "conditional offer" occurs when an offer is made contingent on a condition (or conditions) being met.

Definition of Conditional offer in finance - DaveManuel.com DictionaryFor instance - let's say that you are thinking about buying a home. You decide to make a conditional offer, subject to an approved home inspection. So, you are making an offer to the seller, but the deal will only go through if you get an approved home inspection. This will prevent you from buying a lemon (what happens if the inspection notes that the foundation is cracked? You probably wouldn't want to buy it then).

Of course, the seller has the option of turning down a conditional offer. If they are presented with an offer with no conditions, they are likely to accept that offer, provided that there isn't too much of a $ difference in the offers.

Another type of potential conditional offer - an employment offer.

You may be offered a job, contingent upon you providing your college transcripts. Or, you may be offered a job, provided that you pass some sort of a physical exam.


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