Frequently Asked Questions

How are condition precedents used in deeds to real property?

Condition precedents are used in deeds to real property to ensure that certain events or actions take place before the title is transferred to another person. These stipulations, either implied or expressly stated, are crucial in the execution of contracts, including real estate contracts. They are essentially events that trigger other events to occur, thereby ensuring that one party fulfills their contractual obligations before demanding the same of the other party. For instance, in a mortgage contract, a condition precedent could be related to the sale of a home. This stipulation might state that the home's condition must be assessed to determine the property's value. After this inspection, both the lender and buyer must agree to the assessment and value estimate before the mortgage contract becomes binding. In the context of deeds to real property, a condition precedent could be an event or action that needs to occur before the title is transferred. For example, if you agree to purchase and unload freight from a ship, you could include a condition precedent in the agreement that the title to the freight will be transferred when a specific event, such as your daughter's marriage, occurs.