DEFINITION of 'Conditional Sales Floater'

A type of insurance that protects a seller of property that is purchased in installments or on a conditional basis. If the property is damaged prior to being fully paid off, the seller is reimbursed.


Also known as an "installment sales floater".

BREAKING DOWN 'Conditional Sales Floater'

Conditional sales policies can be used to protect everything from TVs to cars, boats and homes. The policy will generally only indemnify the seller for the portion of the property that has yet to be paid off, or the original sales price minus the aggregate payments made by the purchaser.



RELATED TERMS
  1. Unscheduled Property Floater

    An insurance product that is added to an existing policy and ...
  2. IRS Publication 537

    A document published by the Internal Revenue Service (IRS) that ...
  3. Installment Sale

    A method of sale that allows for partial deferral of any capital ...
  4. Form 6252: Installment Sale Income

    A tax form distributed by the Internal Revenue Service (IRS) ...
  5. Conditional Offer

    In general, an agreement between a buyer and a seller that an ...
  6. Floater Insurance

    A type of insurance policy that covers property that is easily ...
Related Articles
  1. Investing

    What are Floating-Rate Notes?

    A floating-rate note is a debt instrument with an interest rate that “floats,” or varies. They are also called floaters.
  2. Investing

    Avoiding A Big Tax Bill On Real Estate Gains

    Installment sales allow sellers to defer taxes on real estate profits.
  3. Investing

    10 Tips for Getting a Fair Price on a Home

    When the housing market booms, it's tougher than ever to get a good price. Make sure the house you choose is worth the price you pay.
  4. Investing

    Ins And Outs Of Seller-Financed Real Estate Deals

    Seller financing works like this: Instead of a buyer receiving a loan from a bank, the person selling the house lends the buyer the money for the purchase.
  5. Investing

    What You Should Know About Real Estate Valuation

    Anyone involved in a real transaction can benefit from gaining a basic understanding of the different methods of real estate valuation.
  6. Investing

    What Is A Short-Sale Property & How Does It Work?

    A short sale is an alternative to foreclosure whereby indebted owners get permission from a bank to sell their house for less than amount of the mortgage.
  7. Personal Finance

    Explaining Equated Monthly Installments

    An equated monthly installment is a fixed payment a borrower makes to a lender on the same date of each month.
  8. Insurance

    The Importance Of Property Insurance

    Property insurance is important, but there's a lot you need to learn in order to get the proper coverage.
  9. Investing

    10 Must-Know Questions To Ask A Home Seller

    To get a sense of what the home you're considering buying is really like, it helps to talk to the seller.
RELATED FAQS
  1. How do small firms record installment sales?

    Read up on what an installment sale is, how to account for it and the benefits a small business may receive by using the ... Read Answer >>
  2. What are the differences between installment sales and credit sales?

    Determine the differences between credit sales and installment sales, which businesses often offer their customers for deferred ... Read Answer >>
Hot Definitions
  1. Price Elasticity Of Demand

    A measure of the relationship between a change in the quantity demanded of a particular good and a change in its price. Price ...
  2. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying ...
  3. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Down Round

    A round of financing where investors purchase stock from a company at a lower valuation than the valuation placed upon the ...
  6. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
Trading Center