In Victoria, the critical mechanic is deemed satisfaction: on a finance or building-and-pest condition, if you don't give the vendor written notice by 5pm on the condition date, the condition is treated as satisfied and the contract becomes unconditional. Silence counts as yes.
The notice workflow, step by step
- Diarise the 5pm cut-off. Record the finance date and the building and pest expiry the moment you sign — silence by 5pm means deemed satisfied.
- Act diligently. Pursue your lender's formal approval and book a registered building inspector without delay.
- If finance is delayed or refused, tell your conveyancer before 5pm. Don't wait until the deadline — your conveyancer needs time to serve notice properly.
- Your conveyancer serves written notice on the vendor's representative before the deadline. That written notice is what prevents automatic deemed satisfaction — telling only your broker, or your own conveyancer internally, does not count.
For a building and pest condition: use a registered building practitioner and licensed pest control operator, get written reports, and notify the seller in writing by 5pm on the inspection expiry date if dissatisfied and wanting to terminate — again, silence means deemed satisfied. Major structural defects or pest infestation can justify termination (seller may then ask for a copy of your report); minor defects don't give you a right to a price reduction or repairs, though the parties can still negotiate. Failing to take reasonable steps on either condition may prevent you relying on it to terminate — the seller can request evidence of your efforts.