What is a Suspensive condition?

Author
Kruger Attorneys & Conveyancers Inc
Kruger Attorneys & Conveyancers Inc is a specialised conveyancing practice, providing incomparable property law services through practical wisdom and trusted advice.

A suspensive condition is a condition that renders an agreement suspensive until such time that the condition which is stipulated is met or fully complied with.

The wording of the condition is crucial. The agreement must be worded that the condition must first be fulfilled or met and until such a time the agreement will not be fully binding and enforceable between the parties. To avoid any confusion, suspensive conditions must be clear and stipulate exactly what must be done and by when.

The most common suspensive conditions and their wording:

  • This entire agreement is subject to the Purchaser obtaining a loan of Rx within 30 days of signature of this agreement. In the event that the purchaser does not obtain the required loan the agreement will not be binding and will lapse.
  • This agreement is subject to Purchaser selling his/her property known as [address] within a period of [no] days and all suspensive conditions therein being met within [no] days from date of such sale.
  • This agreement is subject to the Seller providing a copy of the approved building plans on or before [date].
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