A couple came to us last year after signing a contract on a townhouse in Nundah without getting it reviewed first. No finance condition. No building and pest condition. Their agent told them the seller would not accept a conditional offer. So they signed unconditionally, thinking their pre-approval was solid and the property looked fine at the open home.

Two weeks later, their lender declined the formal application because the valuation came in $40,000 below the purchase price. They could not get finance. They could not exit the contract. They lost their $30,000 deposit.

That story is not unusual. And it is almost always preventable.

Contract conditions are the legal mechanisms that let you exit a property purchase without losing your deposit. They are the only safety net you have between signing and settlement. Understanding how they work — and insisting on the right ones — is one of the most important things you can do when buying property in Brisbane.

How conditions actually work

A contract of sale becomes binding once both parties sign. But if the contract includes conditions, those conditions must be satisfied within their agreed timeframes before the contract becomes unconditional (fully binding with no exit).

If a condition is not satisfied by the deadline, you typically have the right to terminate the contract and get your deposit back. No penalty. No negotiation. That is the whole point.

Each condition has a specific deadline written into the contract. These deadlines are not flexible — if the date passes and you have not exercised your rights, you may lose the ability to exit. Your conveyancer manages these deadlines, but you need to be responsive when they ask for information or decisions.

The finance condition — the one you cannot skip

We will be direct: if you are borrowing money to buy the property, you need a finance condition. Full stop.

The finance condition gives you a set period — usually 14 to 21 days — to obtain formal loan approval from your lender. Not pre-approval. Formal, unconditional approval for this specific property at this specific price.

Why the distinction matters: pre-approval is a preliminary assessment based on your income and expenses. It says "in principle, you can borrow up to this amount." It does not guarantee that your lender will approve a loan for the specific property you want to buy. Formal approval requires the lender to value the property, complete their full credit assessment, and issue a formal offer. Any of these steps can fail.

Common reasons finance falls through even with pre-approval: the property values below the purchase price, the borrower's circumstances change between pre-approval and formal application (new debt, changed employment), the property type does not meet the lender's criteria (some lenders will not lend on certain property types or sizes), or the lender's risk appetite changes.

Without a finance condition, you are legally committed to completing the purchase regardless of whether you can get a loan. If you cannot settle, you lose your deposit and potentially face a damages claim from the seller.

Watch the wording. Some finance conditions are drafted narrowly — tied to a specific lender, a specific loan amount, or specific terms. If your application is declined and you need to try a different lender, a narrow finance condition may not cover you. Ask your conveyancer to review the wording before you sign.

The building and pest condition — yes, even for new homes

Brisbane is a subtropical city. Termites love it here. That is not an opinion — it is an entomological fact. The greater Brisbane area consistently ranks among the highest-risk regions in Australia for timber pest activity.

A building and pest inspection condition gives you the right to have the property professionally inspected and to terminate the contract if the results are unsatisfactory. The inspection period is usually 7 to 14 days from contract signing.

We have clients who ask whether they really need one. Here is what we tell them:

We have seen termite damage in properties less than five years old. We have seen renovated Queenslanders with structural cracking hidden behind new plasterboard. We have seen properties with illegal plumbing, non-compliant electrical work, and asbestos in places nobody expected. A building and pest inspection costs $400 to $700. The problems it can uncover cost $10,000 to $100,000 to fix. The maths speaks for itself.

New builds are not exempt. If you are buying a brand-new home, you still want a building inspection — ideally a pre-settlement or handover inspection. Construction defects on new homes are more common than the marketing brochures suggest. Poorly sealed windows, inadequate waterproofing, missing insulation, cracked tiles, grading issues that direct water towards the house rather than away from it — all things we have seen discovered at handover.

Read the condition carefully. Some building and pest conditions only allow termination for "major structural defects." Others are broader and allow termination if the buyer is not satisfied with the results for any reason. The broader version gives you more flexibility, but some sellers and agents push back on it in competitive situations.

The due diligence condition — your broadest protection

A general due diligence condition gives you a specified period — usually 7 to 14 days — to investigate the property and terminate for any reason. Any reason at all. You do not need to justify it.

This is the broadest form of buyer protection available, and it is underused in Brisbane. It covers everything the finance and building conditions cover, plus anything else you might discover — neighbour disputes, upcoming council works, a planned highway extension through the back yard, flood history that was not immediately apparent, or simply a change of heart after doing more research.

The trade-off is that sellers do not love due diligence conditions. In a competitive market with multiple offers, a buyer who includes a broad due diligence condition may lose out to a buyer who offers only finance and building conditions (or no conditions at all). Your conveyancer can help you weigh the risk of going conditional versus the risk of going clean.

Other conditions worth considering

Depending on the property and your circumstances, your conveyancer might recommend additional protections.

Pool safety. If the property has a swimming pool or spa, a condition requiring a current pool safety certificate protects you from inheriting non-compliant pool fencing. Rectification can cost thousands.

Body corporate. For units and townhouses, a condition allowing you to review the body corporate records before committing can reveal upcoming special levies, poor financial management, restrictive by-laws, or legal disputes within the scheme.

Sale of existing property. If you need to sell your current home before you can complete the purchase, this condition makes your contract subject to that sale. Sellers are generally reluctant to accept it because it introduces significant uncertainty, but it is worth discussing with your conveyancer if it applies to your situation.

What happens when a condition is not satisfied

You have three options. Terminate the contract and get your deposit back — the cleanest exit. Request an extension from the seller — they can agree, refuse, or negotiate modified terms. Or waive the condition and proceed anyway — which means giving up the protection it offered.

Waiving conditions is sometimes appropriate. If your building report reveals minor cosmetic issues you are happy to live with, waiving the building condition and proceeding makes sense. If your finance has not been formally approved and you waive the finance condition, you are taking a very large gamble. Your conveyancer will advise you on when waiving is reasonable and when it is reckless.

The auction exception

Everything above applies to private treaty sales. Auctions are different.

Properties sold at auction in Brisbane are sold unconditionally. No conditions. No cooling-off period. When the hammer falls and you are the highest bidder, you are committed. You sign the contract on the spot and pay your deposit immediately.

This means all due diligence — building and pest inspections, finance confirmation, contract review, disclosure review — must be completed before auction day. If you are planning to bid at auction, engage your conveyancer early and have everything sorted in advance.

Frequently asked questions

Can I add conditions after the contract is signed?

You would need the seller to agree to a formal variation of the contract. Most sellers will not agree to this after signing. Get your conditions in before you sign.

What if the seller refuses my conditions?

This is a negotiation. Your conveyancer can advise on which conditions are essential and how to present them in a way that keeps your offer competitive. Sometimes it is about the wording rather than the condition itself.

Do conditions apply to off-the-plan purchases?

Off-the-plan contracts have their own condition structures, including sunset clauses and material change provisions. The standard finance and building conditions do not apply in the same way. Your conveyancer will explain the specific protections (and risks) in an off-the-plan contract.

What does "unconditional" mean?

It means all conditions have been satisfied or waived. Once the contract is unconditional, both parties are legally committed to completing the transaction. There is no exit without a breach.