What It Means

What unconditional means

A property contract is generally binding once it has been signed and formed. Conditions can give a buyer particular rights before specified deadlines, including the ability to terminate the contract in certain circumstances.

A contract is commonly described as unconditional when the relevant conditions have been satisfied, waived or otherwise resolved. This does not mean every contractual or legal right disappears. It means the buyer can no longer rely on those resolved conditions as a reason not to proceed.

How a condition operates depends on its exact wording. The deadlines, notice requirements and available options should be confirmed with the buyer's solicitor before any action is taken.

Finance

A finance condition usually gives the buyer time to obtain approval that satisfies the requirements of the contract. The buyer must follow the clause carefully, including its deadline and notice requirements. Approval in principle may not be enough.

Building and pest

A building and pest condition may allow the buyer to obtain inspections and respond to the findings within the agreed period. The available options depend on the wording of the contract and the significance of any issues identified.

Waiving a condition

A buyer may be able to waive a condition and proceed without relying on its protection. This can carry significant risk and should only be considered after receiving legal advice.

The date a contract becomes unconditional is an important milestone, although it may not control every other deadline. Cooling off, insurance, settlement and other obligations can operate from different dates under the contract or the law.

Cooling off is separate

For most eligible residential property contracts in Queensland, the cooling off period begins when the buyer receives the contract signed by both parties. It generally ends at 5 pm on the fifth business day.

The cooling off period may be shortened or waived in writing. It generally does not apply to purchases made at auction or within the prescribed period following an unsuccessful auction.

Terminating during the cooling off period may allow the seller to retain a penalty of up to 0.25 per cent of the purchase price.

A contract can become unconditional while a cooling off right still exists, or the cooling off period can end while contractual conditions remain outstanding. The dates should be considered separately.

Auction purchases

At auction, a contract is generally formed when the auctioneer accepts the successful bid. Auction purchases usually do not have a statutory cooling off period and are commonly entered into without finance or building and pest conditions.

Buyers should arrange legal advice, finance preparation and property investigations before bidding. The auction contract and any special conditions should also be reviewed beforehand.

What Happens Next

Between unconditional and settlement

Once the relevant conditions have been resolved, the purchase moves towards settlement. The buyer's solicitor or conveyancer will manage the legal steps, coordinate with the lender and confirm what is required before completion.

The settlement date is set by the contract and may not be calculated from the date the contract becomes unconditional.

Insurance and risk

The point at which risk passes to the buyer depends on the contract. Under commonly used Queensland residential contracts, this can occur shortly after the contract date rather than when the contract becomes unconditional.

Buyers should speak with their insurer promptly after signing and ask their solicitor to confirm when risk passes under the particular contract.

Pre settlement inspection

Residential contracts commonly allow the buyer to inspect the property shortly before settlement. The purpose is generally to check its condition and confirm that included items remain at the property.

The timing and scope of the inspection depend on the contract. Any concerns should be raised with the buyer's solicitor before settlement.

Settlement must take place in accordance with the contract. Some contracts provide a process for extending the settlement date when the required notice is given. In other circumstances, an extension may require the seller's agreement.

The buyer's solicitor should confirm the available options. Failing to settle without a valid extension can result in default interest and other contractual consequences.

Confirm the contract status

Ask your solicitor which conditions have been resolved and whether any rights or deadlines remain.

Arrange insurance promptly

Confirm when risk passes under the contract and arrange suitable cover from the appropriate date.

Finalise funding

Make sure the lender and solicitor have everything required for settlement.

Complete the pre settlement inspection

Inspect the property within the time allowed by the contract and report any concerns promptly.

Prepare for settlement

Confirm the settlement date, required funds and any remaining documents or practical arrangements.