conditional sales contract

Conditional Sales Contracts

A sale of an asset in which the buyer assumes possession and may have use of the asset, but the seller retains title until the buyer pays its full price and may repossess the asset if the buyer does not. In exchange for the right to use the asset, the buyer makes payments over an agreed-upon period of time, whether months or years. This arrangement is most common with heavy equipment, machinery, and real estate. See also: Beneficial ownership, Lease.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

conditional sales contract

(1) A sales contract in which the buyer is given possession and use of the item sold,but the seller retains legal title until all payments have been made in full.Equipment leases for a term of years,at the end of which the buyer pays $1 to buy the property, have been characterized by the IRS as conditional sales contracts rather than true leases.As a result,the taxpayer is not allowed to deduct the full lease payments each year,but only an amount equal to the depreciation available if the property had been purchased for cash, plus an allocation for interest. This amount is usually less than the annual lease payment. (2) If pertaining to real estate, commonly called a bond for title,land sale contract, or contract for deed.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
in two or more installments over a period of time." The statute also says the definition "includes a security agreement, chattel mortgage, conditional sales contract, or other similar instrument."
A capital lease (akin to a conditional sales contract) is when the lessee will own the equipment at end of term with the last payment or nominal payment (usually $1 or $10).
For example, pursuant to a conditional sales contract the recipient may receive actual or constructive delivery of the TPP outside of Canada, even though the transfer of title only occurs at a much later date in Canada, after another condition under the contract is fulfilled.
"Usually the dealership sells that conditional sales contract to the bank at a discount, with a little money in the dealer's pocket."
The treaty creates international standards for registration of contracts of sale (including dedicated registration agencies), security interests (liens), leases and conditional sales contracts, and various legal remedies for default in financing agreements, including repossession and the effect of particular states' bankruptcy laws.

Full browser ?