Special Conditions

Contract special conditions, explained plainly.

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A

Access Condition Buyer

A condition giving the buyer the right to access the property before settlement for a specific purpose — for example, to take measurements, obtain quotes from tradespeople, or carry out inspections beyond the standard building and pest inspection. The condition should specify when access may be taken, how much notice must be given, and who must be present. Access conditions are particularly common where the buyer intends to carry out renovation work and wants to confirm feasibility before committing unconditionally.

Access before settlement does not transfer any rights of ownership or occupation. The seller retains possession until settlement is complete.

B

Body Corporate Disclosure Condition Buyer

A condition — typically included in contracts for strata-titled properties such as units and apartments — requiring the seller to provide the buyer with records from the body corporate before the contract becomes unconditional. These records commonly include body corporate meeting minutes, financial statements, levy notices, and details of any known defects, disputes, or planned special levies. The buyer has a specified period to review the disclosure material and decide whether to proceed.

Body corporate finances and the condition of common property can significantly affect the ongoing cost and liveability of a strata property. This condition is worth exercising carefully, not treating as a formality.

Building and Pest Inspection Condition Buyer

A condition giving the buyer the right to have the property inspected by a qualified building and pest inspector within a specified period after signing. The condition sets out what the buyer may do with the results — commonly, withdraw from the contract if the report is unsatisfactory, or proceed unconditionally. What constitutes a “satisfactory” result is usually defined in the condition itself; the buyer cannot simply change their mind and use a minor finding as a pretext to exit unless the condition permits it.

The building inspection condition and the finance condition are typically the two most significant protections a buyer has before the contract becomes unconditional. Both have fixed deadlines that must be observed.

See also: Finance Condition in the Property Law Glossary

C

Completion of Works Condition Both

A condition requiring the seller to complete specified works on the property before settlement — for example, repairing damage identified during the building inspection, removing a structure, completing a renovation, or obtaining a certificate of compliance for works already carried out. The condition should clearly specify what works are required, the standard to which they must be completed, and what happens if they are not finished by the settlement date. It is also common for a completion of works condition to require a final inspection confirming the works are done before settlement proceeds.

Vague works conditions cause disputes. A condition that says “the seller will repair the roof” is weaker than one that specifies the scope, the standard, and who determines whether the work meets it.

D

Deposit Release Condition Seller

A condition permitting the deposit — ordinarily held in trust until settlement — to be released to the seller before settlement occurs. This is sometimes requested by sellers who need the funds for an associated purchase or other purpose. A deposit release condition typically requires the contract to be unconditional before the deposit can be released, and may require additional protections for the buyer in the event the sale does not complete. Buyers should understand the implications of agreeing to an early deposit release before signing.

E

Early Possession Condition Buyer

A condition allowing the buyer to take possession of the property before settlement — for example, to begin moving in, commence renovation works, or occupy the property for an agreed period before the purchase is complete. Early possession arrangements are not common in straightforward residential transactions and introduce complexity for both parties. The condition must clearly specify the terms of occupation, any rent or licence fee payable, who bears the risk of damage during the possession period, and what happens if settlement does not proceed. Sellers accepting early possession should seek advice before agreeing.

Early possession is not the same as early ownership. The buyer does not have legal title until settlement completes, and their rights of occupation are governed by the terms of the condition rather than by property law.

F

Finance Condition Buyer

A condition giving the buyer a specified number of days from signing to obtain formal approval of their loan from a lender. If the buyer cannot obtain finance within that period, and the condition has not been waived, they are typically entitled to withdraw from the contract and have their deposit returned. The finance condition specifies the loan amount, and sometimes the interest rate or loan type, that the buyer is seeking. If the buyer obtains finance approval for a lesser amount or on different terms, the condition may or may not be satisfied depending on how it is drafted.

Pre-approval from a lender is not formal finance approval. The finance condition is not satisfied until the lender provides unconditional written approval. Missing the finance date — or failing to request an extension in time — can affect the buyer’s rights to withdraw.

Foreign Investment Review Board (FIRB) Condition Buyer

A condition requiring the buyer to obtain approval from the Foreign Investment Review Board before the contract becomes unconditional. FIRB approval is required for foreign persons — as defined under Australian foreign investment law — purchasing residential property in Australia. The condition specifies a period within which approval must be obtained, and typically allows the buyer to withdraw if approval is refused. The definition of “foreign person” is specific and encompasses more than just non-residents; buyers who may be subject to FIRB requirements should seek advice before entering a contract.

I

Inclusions Condition Both

A condition — or schedule — specifying the items that are included in the sale in addition to the land and fixed structures. Inclusions might cover fixed floor coverings, curtains and blinds, light fittings, built-in appliances, garden structures, and any other items the parties have agreed will remain with the property. A clearly drafted inclusions condition avoids the most common source of pre-settlement disputes: disagreement about what stays and what the seller is entitled to take. Any item of significance to either party should be specifically addressed rather than assumed.

See also: Inclusions and Exclusions in the Property Law Glossary

L

Land Tax Clearance Condition Buyer

A condition requiring the seller to obtain a certificate from the State Revenue Authority confirming that no outstanding land tax liability is registered against the property, and that the certificate will be provided at or before settlement. Land tax debts can attach to the property itself rather than the individual owner — meaning a buyer could become liable for a previous owner’s unpaid land tax if it is not cleared before settlement. A land tax clearance condition, or a search confirming no liability, protects against this risk.

See also: Land Tax in the Property Law Glossary
Lease Condition Both

A condition dealing with an existing tenancy affecting the property — either confirming that the buyer is aware of and accepts the tenancy on the stated terms, or requiring the seller to take specified steps in relation to the tenancy before settlement. Lease conditions are common in investment property transactions where the property is sold with a sitting tenant, but also arise in residential sales where a tenant needs to vacate before settlement. The condition should confirm the lease terms, the tenant’s status, any notice already given, and what happens if the property is not vacant by settlement.

Longer Settlement Condition Both

A condition setting a settlement date that is longer than the standard timeframe — typically requested by a seller who needs additional time to find or prepare a new property, or by a buyer who needs more time to arrange finance or coordinate another transaction. A longer settlement date is often agreed at the time of negotiation rather than included as a formal condition, but where it is documented as a condition, it may specify triggers that could bring settlement forward or circumstances in which the date can be varied.

O

Off-the-Plan Registration Condition Buyer

A condition in an off-the-plan contract making settlement conditional on the registration of the plan of subdivision or strata plan that creates the buyer’s lot as a separate, transferable title. Settlement cannot proceed until the lot has been created as a legal title — which requires the developer to complete the project, lodge the plan, and have it registered at the Land Titles Office. The condition interacts with the sunset clause: if registration has not occurred by the sunset date, the buyer (and sometimes the developer) may have the right to terminate.

P

Pool Safety Compliance Condition Seller

A condition requiring the seller to provide evidence of pool safety compliance — typically a certificate confirming the pool barrier meets current standards — at or before settlement. Pool safety requirements in Tasmania apply to properties with swimming pools and spa pools accessible to young children, and compliance certificates are required on sale. Where a property has a non-compliant pool, the condition may require the seller to carry out the necessary works before settlement, or alternatively may allow the parties to adjust the purchase price and transfer compliance responsibility to the buyer.

S

Sale of Property Condition Both

A condition making the purchase conditional on the buyer first selling their own property. This protects a buyer who cannot afford to own two properties simultaneously — if their existing property does not sell by a specified date, they may be entitled to withdraw from the purchase and recover their deposit. Sale of property conditions are often accompanied by a Shorter Period (48 Hour) Clause that allows the seller to continue marketing their property and to give the buyer notice to waive or satisfy the condition if a better offer arrives.

Settlement Date Condition Both

A condition specifying a particular settlement date, or a mechanism for determining it — for example, a fixed date, a date calculated from the date the contract becomes unconditional, or a date linked to an external event such as the registration of a plan. Settlement date conditions may also allow one party to request a variation if circumstances change, and specify the process for doing so. Where the settlement date is not fixed in the standard contract terms, a specific condition addressing it avoids ambiguity about when completion is required.

Shorter Period / 48 Hour Clause Seller

A clause that allows a seller — whose property is under contract subject to a sale of property condition — to continue marketing the property and to give the contracted buyer notice if a better offer is received. Once notice is given, the buyer has two clear business days to either waive or satisfy their conditions and proceed unconditionally, or the seller may terminate the contract and accept the alternate offer. The notice period runs from the start of the next business day after notice is given. For example, notice given on a Friday means the period expires at midnight on Tuesday.

The 48 hour period is measured in clear business days, not calendar days. The timing must be calculated carefully — errors in issuing or responding to notice can affect both parties’ rights.

V

Vacant Possession Condition Buyer

A condition — or standard term — requiring the seller to deliver the property free of any occupants at settlement. This means that any tenants must have vacated, any licence to occupy must have ended, and any of the seller’s own belongings or items not included in the sale must have been removed before the buyer takes possession. Vacant possession is the standard expectation in a residential sale unless the contract expressly provides otherwise. Where a property is tenanted, the lease terms and the notice requirements for termination must be considered well before the expected settlement date.

If a tenant has not vacated by settlement and the contract requires vacant possession, the buyer is not obliged to settle. Addressing tenancy arrangements early — before a settlement date is agreed — avoids this becoming a last-minute complication.

See also: Lease Condition

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