A conditional sales contract is a contract that deals with the sale of goods to a consumer. As a rule, a condition is included in the contract that states that the goods do not belong to the buyer until he has paid the last instalment. Ownership of the goods remains between the lender`s raux until then and the lender can repossess the goods if the buyer is in default of payment. Marie Huntington has been a legal and business journalist since 2002 and has published articles on various websites. She also offers content related to online travel and holds a Juris Doctor degree from Thomas Cooley Law School. Hire-purchase is exactly what it looks like – a rental agreement that gives you the opportunity to own the car at the end of the contract. These are usually fixed costs, i.e. the annual percentage rate of charge is set before the start of the contract. The term of the loan is also fixed – usually three to four years – and the financing contract is secured against the purchased car, meaning lenders can be flexible on the terms they offer. The seller reserves the right to guarantee a security right to secure the buyer`s payment obligation. The security right reduces the risk of loss and gives the seller the right to seize the asset against non-payment under a conditional purchase agreement.
The security right in the asset is also referred to as a lien, whether it is real property or tangible assets. A conditional sale is a real estate transaction in which the parties have set conditions. The same goes for car purchase contracts. In some states, buyers can drive the car off-property by signing a conditional purchase agreement. These contracts are usually signed when the funding is not yet complete. However, the title and registration of the vehicle remain in the name of the dealer, who has the right to take back the vehicle if the conditions are not met. This means that the seller is still working to secure the financial terms of the business, or the seller will have to find his or her own to complete the purchase. A standard real estate transaction usually begins when a potential buyer makes an offer to purchase to the seller of a property. As with a standard offer, a conditional offer sets out the terms of the sale such as the purchase price, closing date, names of the parties and the amount of the required deposit, but it also sets out various conditions that must be met for the contract to be binding on the parties. These conditions may include approval by a co-buyer, financing acceptable to the buyer, receipt and review of a study showing that the buildings on the property comply with local zoning bylaws, a title search that shows no unacceptable lien or charge, confirmation by the current mortgage holder that the property is not foreclosed, and so on. If the offer is accepted by the seller, the offer to purchase for the parties becomes a contract binding the parties if all the conditions are met. Conditional selling is a traditional way to buy a car on financing, offering a simple deal that involves paying a down payment followed by equal monthly payments, similar to a personal loan.
Under a conditional purchase agreement, ownership is automatically transferred to you as soon as the financing is fully repaid. Search: `conditional purchase agreement` in Oxford Reference » Many people who rent their own items such as electronics and furniture are also involved in conditional purchase agreements. .