What is the term for an event that must occur before title is passed?

The term "Condition Precedent" refers to a specific event or condition that must be fulfilled before a particular action can take place, such as the passing of title in a real estate transaction. In this context, it is crucial because for the transfer of ownership to occur, certain conditions must be met first. These conditions can include obtaining financing, clear title, or the completion of inspections, ensuring that both parties are protected and that legal obligations are satisfied before the title transfer takes place.

Understanding this term is essential in real estate practice, as it lays the groundwork for the obligations of the parties involved in a transaction. If this condition is not met, the transfer of title will not occur, highlighting the importance of ensuring that all required conditions are adequately addressed to proceed with the sale or transfer.