Miss a contract condition and you can lose the deal: the deadlines that matter

Many property contracts are "subject to" one or more conditions — most commonly a finance condition and a building and pest inspection condition. These give you a protected window to sort out your loan or check the property, but they only protect you if you act within the deadlines and take genuine steps to satisfy them. This guide explains what conditional contracts are, how the process differs from state to state, and what's at stake if a condition lapses — so you understand the deadlines that matter before you're up against them.

Key takeaways

• Conditions are your safety net — with a time limit: you must take reasonable steps to satisfy them by the deadline, or you can lose the right to terminate on those grounds.
• The approach is very state-specific: in NSW these conditions are often not in the contract at all; in QLD and VIC they usually are, and the process is more prescriptive.
• In Victoria, silence can count as a "yes": if you don't notify the seller in writing by the deadline, the condition is deemed satisfied and the contract continues.
• Doing nothing has consequences: failing to comply can mean forfeiting your deposit and, in some states, further remedies for the seller.

1. What a conditional contract is

A condition makes part of the contract dependent on something happening — your finance being approved, or a satisfactory building and pest report. Until the condition is met or waived, you generally have a right to terminate if it can't be satisfied. But that right isn't automatic or open-ended: you're expected to take reasonable, diligent steps toward satisfying the condition, and to do so by the date the contract sets. Sit on your hands and you may find you can no longer rely on the condition at all. For the general principles, see the complying with contract conditions explainer.

2. How the process differs by state

How prescriptive these conditions are — and even whether they appear in the contract at all — varies significantly by state. NSW purchases often carry few or no such conditions, which shifts the emphasis onto due diligence before you're bound; in QLD and VIC they're routinely included, and both states are more prescriptive about the notice you have to give to rely on them.

State comparison at a glance

Read the detail for your state: NSW, QLD, or VIC.

3. The deadlines that matter most

• The finance date: the deadline to have your loan approved, or (in Victoria) to notify the seller in writing whether finance is approved, waived, or not approved. In VIC, staying silent means the condition is deemed satisfied and the contract continues.
• The building and pest inspection date: the deadline to complete inspections and — where you want to terminate — to notify the seller. In Victoria this notice must be in writing by 5pm on the inspection expiry date, and again, silence means deemed satisfied.
• The standard of defect that lets you act: major structural defects or pest infestation can justify termination; minor defects generally don't give you an automatic right to a price reduction or repairs, though the parties can still negotiate.

4. What's at risk if you miss a condition

Letting a condition lapse doesn't just remove a safety net — it can tip you into default, which in Queensland gives the seller a range of remedies, as set out in the consequences of buyer default explainer.

Even in states where these conditions are less common, failing to comply with a condition that is in your contract can still mean forfeiting your deposit or facing other penalties.

5. Questions to ask before the deadlines

• Which conditions are in my contract, and what is the exact deadline for each?
• Do I need to give formal written notice to satisfy or rely on a condition — and by what time of day?
• What "reasonable steps" am I expected to take, and can the seller ask me to prove them?
• If an inspection turns up problems, what threshold lets me terminate versus renegotiate?
• What happens to my deposit — and what else can the seller claim — if a condition isn't met?