Offer, contract and conditions

Key takeaways

• This stage takes you from making an offer through contract signing and, where conditions apply, towards an unconditional contract.
• Whether an offer or a contract is binding depends on the state, the contract and your circumstances, so it is worth knowing where you stand before you sign.
• Conditions such as finance or building and pest are not automatic escape routes. They usually need action by a set deadline, and what they allow depends on how they are written.

This stage takes you from making an offer through contract signing and, where conditions apply, towards an unconditional contract. Understanding when you become legally committed is important, because your options can narrow significantly once the contract is binding.

This is the heart of the transaction: making an offer, agreeing the terms, signing and exchanging the contract, and then meeting any conditions that apply. Cooling-off, deposits, key dates, finance and other contract conditions all sit around this stage, and the guides below cover each one in detail, including the state-by-state differences.

Is making an offer on a property legally binding?

Whether an offer is legally binding depends on the state, how the offer is made and the circumstances of the transaction. In many cases, the important legal point is when a binding contract is formed or exchanged, rather than simply when you tell an agent you want to buy.

That is worth pinning down before you sign rather than afterwards, because it shapes everything that follows: what you are committed to, what conditions apply, and what you can still change.

What happens after you make an offer?

A common purchase pathway is an offer being made, terms being negotiated, a contract being signed and exchanged, and then any agreed conditions being satisfied. The exact process and when the contract becomes binding vary by state, contract and circumstances.

The important question isn't simply whether an offer is conditional. It is whether you have entered into a binding contract, what conditions apply to that contract, and what those conditions allow you to do.

As the transaction progresses, the circumstances in which you can withdraw or terminate can change, so it is important to understand what applies before you sign and as each condition approaches its deadline.

What is the difference between a conditional and an unconditional property contract?

A conditional contract is subject to specified conditions that must be satisfied or dealt with before the contract becomes unconditional. An unconditional contract no longer has those outstanding conditions available as a basis for withdrawal or termination. The exact effect depends on the contract and the state, so treat this as the shape of the idea rather than a rule you can apply to your own purchase. Contract terms and key dates covers how it works in practice, including the state differences.

How do special conditions work?

Special conditions are the levers negotiated into the contract, and a lot of your position sits in how they are written. A finance condition can give you rights if finance isn't approved, depending on the wording and deadlines in the contract. A building and pest condition can set out what happens if an inspection identifies issues, including whether you can negotiate, satisfy the condition or terminate. The rights depend on the wording of the contract and the relevant state rules.

Some buyers may also negotiate a condition linked to selling their own home. The contract can set out how long that arrangement lasts and what happens if the seller receives another offer.

Conditions usually need action, not just waiting

It is easy to picture conditions as things that simply happen in the background. In practice most of them ask something of you by a particular date: an application, evidence, a notice, or a decision one way or the other. Complying with contract conditions covers what that looks like step by step.

This is the point where the terms you agreed start to determine what happens next, so understanding your conditions and deadlines matters. That is where good conveyancing earns its place: helping you understand what you're agreeing to before you are committed, then keeping track of the conditions and dates that follow.

Each part of this stage has a guide below. The cooling-off period covers what cooling-off does and doesn't give you in your state. Deposits in property transactions covers when a deposit is paid and what can be at risk. Getting finance approved covers what happens if finance isn't approved in time. Contract terms and key dates covers the dates that drive the contract, and complying with your conditions covers what to do as each deadline approaches and what can happen if one is missed.