All terms
legal
Conditional contract
A contract that only binds the parties if specific conditions are met (e.g. mortgage approval, planning consent). Used in Modern Method of Auction.
In simple terms
A 'we'll buy it if X happens' agreement, not a done deal.
Example
MMA buyer wins at £180,000 conditional on a mortgage offer within 28 days. Fail to secure one, the contract may collapse but the reservation fee is forfeit.
If you're buying
Conditional contracts give you a window to arrange finance, but losing the deal still costs the reservation fee.
If you're selling
More fall-through risk than unconditional. Build margin into your reserve.