In Victoria, the standard Contract of Sale runs on a simple default: if you take no action by a condition's deadline, that condition falls away and the contract becomes unconditional. Silence works against you, so the deadlines and the notice steps matter.
Finance: the standard loan condition
Where the contract is subject to finance, you must apply promptly to the lender named in the Particulars of Sale and do everything reasonably required to obtain approval. Applying to a different lender, or for a different amount, can cost you the protection of the condition.
If the loan is not approved by the approval date, you can end the contract, but only if you serve the vendor written notice ending the contract, together with written evidence that the loan was rejected or not approved, within 2 clear business days after the approval date. A conveyancer's bare email is not enough: you need the lender's written decline. Give no notice and the contract continues, leaving you bound to settle. For how this compares across states, see the finance approval guide.
Building and pest
For a building and pest condition, use a qualified inspector: for the building report, a registered building surveyor, registered building inspector, registered domestic builder or architect; the pest report prepared to the relevant Australian Standard. Get your written reports, and if you are terminating, serve written notice with the report within 14 days from the day of sale. Silence inside the window means the contract continues. Major structural defects or pest infestation can justify termination, and the 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.
The notice workflow, step by step
- Diarise every deadline the day you sign. Note the approval date, the two clear business day window that follows it, and the building and pest expiry.
- Act early. Lodge your loan application straight away and book a registered building and pest inspector without delay.
- Tell your conveyancer the moment finance looks shaky. They need time to obtain the lender's written decline and serve a proper notice.
- Make sure the vendor's representative is served in writing, on time. Telling only your broker, or noting it internally, does not end the contract.
If you fail to take reasonable steps on a condition, you may lose the right to rely on it, and the vendor can ask for evidence of your efforts. While your conditions are still live the deposit generally stays in trust, which is why early release under Section 27 only applies once the contract is unconditional.
General information only, not legal advice. Contract wording and timing vary, so check your specific contract and get advice from a licensed conveyancer or solicitor.
