Selling
Understanding Offers & Conditions
What every buyer and seller should know about conditional offers, unconditional sales, and negotiating with confidence.
What is a conditional offer?
A conditional offer is an offer to purchase a property that is subject to one or more conditions being satisfied.
These conditions give the purchaser time to complete specified checks or obtain approvals before becoming unconditionally committed to the purchase.
Get independent advice: the exact wording and legal effect of any condition matters, so buyers and sellers should obtain independent legal advice before signing an agreement.
Common purchaser conditions
Depending on the property and purchaser's circumstances, an offer may include conditions relating to matters such as:
Every agreement is different. These are examples only. Conditions vary from agreement to agreement, and we'll explain exactly what's in yours.
- Finance — confirmation that suitable finance is available for the purchase
- Building inspection — a suitably qualified inspector assessing the property's condition
- LIM or council/property information — reviewing information held by the local council relating to the property
- Solicitor's approval — approval of the agreement by the purchaser's solicitor within an agreed period
- Sale of another property — the purchaser's ability to proceed may depend on selling their existing home
What does unconditional mean?
Once all conditions have been satisfied or otherwise dealt with in accordance with the agreement, the sale can become unconditional.
At that point, both parties are generally committed to completing the transaction in accordance with the Sale and Purchase Agreement.
This is an important legal step, and your solicitor or conveyancer should advise you on your obligations.
The highest offer isn't always the strongest offer
Imagine receiving two offers.
"Which is better? There isn't always an automatic answer."
We look at the whole picture. When presenting offers, we'll explain the price, conditions, dates and other relevant terms so you can consider the overall offer — not just the dollar figure.
- One is slightly higher but contains several conditions and a long timeframe
- The other is slightly lower but has fewer conditions, a shorter conditional period, or provides greater certainty
What happens when there are multiple offers?
If more than one purchaser wishes to make an offer at the same time, a multiple-offer situation may arise.
This can give sellers a strong opportunity, but it needs to be handled carefully and fairly.
Put your best foot forward: buyers should understand that they may not get another opportunity to improve their offer, so they should consider putting forward the offer they are comfortable making. The vendor then considers the offers presented and decides how they wish to proceed.
Can a seller negotiate an offer?
Yes. Receiving an offer doesn't mean the seller has to simply accept or decline it.
The vendor may choose to negotiate matters such as price, settlement date, conditions or other terms.
This is where experience counts. Skilled negotiation can make a significant difference. Team Toner will discuss the offer with you, understand what's important to you and negotiate on your
Don't sign something you don't understand
A Sale and Purchase Agreement is an important legal document.
Team Toner can explain the real estate process, but we cannot provide legal advice.
We recommend that purchasers and vendors obtain independent advice from their solicitor or conveyancer if they have any uncertainty about the agreement, its conditions or their legal obligations.
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