There are times when there is a need for a buyer to make incremental payments for something that they would want to purchase as properties such as residential properties and vehicles can amount to a pretty hefty sum that may be hard for some to pay in bulk, so incremental payments on fixed pay periods are often chosen.
In this article, we would like to give you a brief discussion about what conditional sales agreements are. We have also uploaded some sample downloadable sales agreement templates that can be used as a reference to how these agreements are formatted and what are the basic elements that are included. Make sure that you continue reading this article to find out more.
A conditional sales agreement contract is basically a written agreement that presents an individual possession of a property; however, ownership is only deemed to be legal if and only if the sale price has been paid fully. This means that a seller will preserve the title of the property while the buyer pays in increments for specific periods, and once full payment has been done, it is the only time that the title will be handed over to the buyer. These agreements are usually used when it comes to selling real estate property, vehicles, equipment, and other property that may be too expensive to be bought in straight cash.
One of the best benefits of making use of a conditional sales agreement is the fact that the property can be used by the buyer while he/she is still paying for the property. A ton of times, depending on the credit history of the buyer, he/she can ask for financing assistance from the seller to help apply for a bank loan. The agreement will help to protect the seller should any issues regarding payments arise, and since the title of the property will remain to be in the owner’s name until payments are fully paid, reclaiming possession will be easier should issues arise.
Important financial details of the sales transaction are reflected in the agreement. This will include the following:
You can find out more about what can be included in a conditional sales agreement by checking out our sample real estate purchase agreements.
