Property Glossary
A Queensland property contract becomes unconditional once all conditions are satisfied or waived. At that point, the buyer is legally committed to proceed and the deposit is at risk. Here is what you need to know.
A property contract in Queensland typically starts as a conditional contract: it contains conditions that must be satisfied before both parties are fully committed to proceeding. The most common conditions are the finance clause and the building and pest condition. Until those conditions are satisfied or waived, either party may have rights to terminate the contract.
The contract becomes unconditional when all conditions have been formally satisfied or waived in writing. At that point, both parties are legally committed to proceed to settlement. The buyer has no further right to withdraw without exposing themselves to significant financial consequences, including forfeiture of the deposit and potential liability for any loss the seller suffers as a result of the buyer failing to complete.
The finance condition is satisfied when the buyer notifies the seller that formal finance approval has been obtained. The building and pest condition is satisfied when the buyer notifies the seller that they are proceeding on the basis of the inspection results, or when the condition period expires without the buyer exercising their right to terminate. Both processes require written notification through the solicitors managing the transaction.
A buyer can choose to waive a condition before it is formally satisfied. This converts the contract to unconditional status immediately for that condition. Waiving the finance condition without formal approval in hand, or waiving the building and pest condition without a satisfactory inspection, are significant risks. Both should only occur on the explicit advice of your Queensland solicitor.
The unconditional date is one of the most important milestones in the Queensland purchase process. Confirm it clearly with your solicitor when the contract is signed and track it carefully throughout the condition periods.
The period between going unconditional and settlement is when the practical work of completing the purchase occurs. Your solicitor manages the title search and review, prepares the transfer documents, liaises with your lender on settlement funding, adjusts rates and outgoings as at the settlement date, and coordinates the physical settlement process.
You should arrange insurance on the property from the unconditional date, or from exchange in some circumstances. Your solicitor will advise on when the risk passes to you. Do not leave insurance until settlement day.
A pre-settlement inspection is your right as the buyer. This is a final walkthrough of the property, typically conducted in the day or two before settlement, to confirm the property is in the same condition as when you purchased it and that all agreed inclusions are present. If significant issues are identified at pre-settlement, contact your solicitor immediately before settlement proceeds.
From the unconditional date, you have an insurable interest in the property. Arrange building insurance before settlement to ensure you are covered from this point.
Book a pre-settlement inspection for the day before or morning of settlement. This is your last opportunity to identify any issues before ownership transfers.
Confirm with your solicitor and lender that settlement funds are in place well before the settlement date. Settlement delays caused by funding issues can result in penalty interest.
Going unconditional is a significant commitment. If you have any concerns about a property or contract before reaching this milestone, the time to raise them is before, not after. Feel free to get in touch.