Forbehold (conditional term on a bid)

A forbehold is a condition you attach to your bid, such as a financing condition (the bid only holds if you get the loan) or a condition that you first sell your own home. If the condition is not met, the bid lapses. The bid is binding the moment the agent receives it, even with a condition attached, but the seller is freer to pick a clean bid because a bid with no conditions is more predictable. In a tight market you stand stronger with your financing certificate in place and a bid without conditions. As a buyer, use conditions deliberately and settle financing with the bank before the bidding round so you can bid clean.