Conditional vs unconditional offers
When you find a property you want to buy, you'll make an offer through a Sale and Purchase Agreement. The critical decision is whether your offer is conditional or unconditional.
Conditional Offer
Your offer depends on certain things happening first — like getting finance approved or being satisfied with a building inspection.
- • Gives you protection and time to check
- • Can withdraw if conditions aren't met
- • May be less attractive to sellers
Unconditional Offer
Your offer is binding immediately once accepted. There's no backing out without serious consequences.
- • More attractive to sellers
- • Legally binding once accepted
- • Very risky for first home buyers
Our strong advice: First home buyers should almost always make conditional offers. The protection conditions provide far outweighs any competitive advantage of going unconditional.
Common conditions you should consider
These are the standard conditions that protect first home buyers. You can include some or all of them depending on your circumstances.
Finance Condition
Gives you time to confirm your bank will lend you the money for this specific property. Pre-approval isn't final approval — the bank still needs to approve the property itself.
Typical timeframe: 10-15 working days
Building Inspection Condition
Allows you to get the property inspected by a qualified building inspector. If they find significant issues, you can renegotiate or withdraw.
Typical timeframe: 10-15 working days
LIM Condition
Gives you time to obtain and review the Land Information Memorandum from the council. Important for understanding what the council knows about the property.
Typical timeframe: 10-15 working days (order early — councils can take 10 days)
Solicitor's Approval / Due Diligence
Allows your lawyer to review the title, identify any issues, and advise you before you are committed. This is where we check for easements, covenants, caveats, or other restrictions.
Typical timeframe: 5-10 working days
Sale of Existing Property
If you need to sell your current property to fund the new purchase. Less common for first home buyers but relevant if you are selling an investment property.
Note: Sellers often resist this condition as it adds uncertainty
Negotiation basics
Most property transactions involve some negotiation. Here's what you should know:
- Price isn't the only factor: Settlement date, inclusions, and conditions all matter to sellers
- Counter-offers are normal: Sellers often come back with different terms — this is expected
- Know your limits: Decide your maximum price and stick to it, especially in competitive situations
- Multi-offer situations: When there are multiple offers, you may only get one chance — make your best offer
- Don't let emotion drive decisions: There will always be another property if this one doesn't work out
What is a multi-offer?
When a seller receives multiple offers, they can ask all buyers to submit their "best and final" offers by a deadline. You usually won't know what others are offering. This is different from an auction — you are still making a private offer, and the seller isn't obligated to accept the highest.
When to seek pre-contract advice
While you can sign a conditional agreement and then have us review it, there are situations where getting advice before you sign is valuable:
- 1 Unusual property types: Cross-leases, unit titles, or properties with multiple dwellings
- 2 Auctions: You'll be bidding unconditionally — get all checks done beforehand
- 3 Non-standard agreements: If the seller or agent has modified the standard ADLS form
- 4 Complex ownership: Buying with friends or family, or using trust structures
- 5 Pressure to go unconditional: If an agent is pushing you to waive conditions
About to make an offer? Call us on 06 835 7394 — we can answer quick questions or arrange a pre-contract review if needed.
How we help
We review the Sale and Purchase Agreement, explain what the conditions mean, and ensure your interests are protected before you commit.