What is the difference between a "firm" offer and an offer "subject to conditions"?

What is the difference between a "firm" offer and an offer "subject to conditions"?

• A. A firm offer is unconditional; an offer subject to conditions requires conditions to be satisfied before it becomes binding.
• B. A firm offer requires the buyer to pay extra fees.
• C. A firm offer is invalid until a lawyer signs.
• D. An offer subject to conditions cannot be withdrawn.

Answer: (B)

The difference rests on whether there are conditions attached to the offer. A firm offer is unconditional—the buyer is saying they’re prepared to proceed without any contingencies, so once the seller accepts, the contract is binding and the sale moves toward closing. An offer “subject to conditions” includes specific requirements (like financing approval, a satisfactory home inspection, or others) that must be met for the contract to become binding. If those conditions aren’t satisfied within the agreed timeframe, the offer can lapse or be withdrawn. So the key idea isn’t about fees, who signs, or withdrawal mechanics in general, but whether the deal is binding immediately or only after certain conditions are fulfilled.

The difference rests on whether there are conditions attached to the offer. A firm offer is unconditional—the buyer is saying they’re prepared to proceed without any contingencies, so once the seller accepts, the contract is binding and the sale moves toward closing. An offer “subject to conditions” includes specific requirements (like financing approval, a satisfactory home inspection, or others) that must be met for the contract to become binding. If those conditions aren’t satisfied within the agreed timeframe, the offer can lapse or be withdrawn.

So the key idea isn’t about fees, who signs, or withdrawal mechanics in general, but whether the deal is binding immediately or only after certain conditions are fulfilled.