What does "subject to" mean in a real estate contract?

In a real estate contract, the term "subject to" indicates that the transaction is contingent upon certain conditions being met. This means that the completion of the sale is dependent on specific criteria or obligations that must be fulfilled prior to the transaction's closing. For instance, a buyer may agree to purchase a property "subject to" the seller satisfying certain repair requirements or obtaining necessary approvals from a governing body.

This use of "subject to" creates a conditional framework that protects one or both parties involved in the contract, allowing them the opportunity to meet these specified requirements before fully committing to the sale. It is an important contractual element that helps to manage expectations and ensure that both parties understand the stipulations that could affect the transaction.