The protection is only real if you use it correctly. Everything below is about what each condition actually requires, so you do not become the next case study.

What "subject to" really means

When a contract is "subject to" something, the sale only goes ahead if that condition is met within a set timeframe. If the condition is not satisfied, you can end the contract and get your deposit back.

Every subject-to condition has three parts: what must happen (the specific event, like loan approval or a satisfactory inspection report), when it must happen by (the deadline, stated as a date or number of days), and what you must do (your obligations to make it happen — apply promptly, use reasonable efforts, provide documents). If you miss the deadline or fail to meet your obligations, you may lose the right to rely on the condition, even if the underlying event never happened.

Subject to finance — the condition that collapses most often

This is the most common condition. It makes the sale dependent on your lender granting formal loan approval for the property you are buying. It protects you from your lender declining the loan, valuing the property lower than the purchase price, or changing your borrowing terms after you sign.

Typical timeframes are 14 to 21 days from the contract date, though this varies by state and can be negotiated ^[3]. Your obligations are strict: take all reasonable steps to get your loan approved, apply promptly, provide documents your lender requests, and respond to queries without delay. If you drag your feet or fail to apply at all, the seller can argue you did not meet your obligations and the condition is void ^[2].

Subject to building and pest — the condition that pays for itself

This condition makes the sale dependent on you getting a professional inspection and being satisfied with the results. It covers structural defects, termite damage, rising damp, faulty roofing, and non-compliant renovations — things that are not visible during an open home.

The CSIRO estimates 1 in 5 Australian homes will be attacked by termites over their lifetime, and repair costs regularly range from $5,000 to $30,000 for moderate infestations ^[4]. A combined building and pest inspection typically costs $500 to $900 ^[5]. The timeframe is usually 7 to 14 days from the contract date ^[5], and you need to arrange the inspection and give written notice of any issues within that window. In Queensland, the standard REIQ contract requires notice by 5pm on the inspection date ^[6].

What you can do if the report finds problems:

• Terminate the contract and get your deposit back.
• Negotiate a price reduction to cover the repair costs.
• Ask the seller to complete specific repairs before settlement.
• Accept the issues and proceed with the purchase.

Subject to strata report — the condition that protects you from other owners

If you are buying an apartment, townhouse, or any property in a strata scheme, this condition lets you review the financial health and management of the owners corporation before committing. It protects you from unexpected special levies (sometimes tens of thousands of dollars), building defect disputes, inadequate insurance, poor financial management, or pending legal action within the complex ^[7].

Typical timeframes are 7 to 14 days, though obtaining strata records from the owners corporation can take time. Make sure your timeframe allows for this.

Subject to sale of your existing home — the condition sellers resist

This condition makes your purchase dependent on selling your current home first. It protects you from being stuck paying two mortgages simultaneously if your existing property does not sell in time. Typical timeframes are 30 to 60 days, though this varies widely with the market ^[8].

Sellers are often reluctant to accept this condition because it makes their sale dependent on a third transaction they have no control over. To offset this risk, many sellers will insist on a sunset clause (subject to sale) — the seller can keep marketing the property, and if they get another offer, you typically have 48 to 72 hours to go unconditional or lose the contract ^[8].

Other conditions your conveyancer may recommend

Depending on your situation, your conveyancer might suggest additional conditions:

• Subject to conveyancer or solicitor review — gives your legal representative time to review the full contract and raise objections.
• Subject to satisfactory due diligence searches — covers council searches, planning overlays, flood maps, contamination, and zoning checks.
• Subject to valuation — separate from the finance condition, this protects you if the independent valuation comes in below the purchase price (useful when you have the cash but want to confirm the price is fair).

How conditions actually end

A condition does not just disappear when the deadline passes. There is a specific process, and it differs by state. Generally one of three things happens:

1. 1The condition is satisfied — you got finance, the inspection was fine, and the contract becomes unconditional.
2. 2The condition is not satisfied and you terminate — you give proper written notice and the contract ends with your deposit returned.
3. 3The condition is not satisfied but you miss the deadline — depending on the contract wording and your state, the contract may automatically become unconditional, or either party may gain the right to terminate.

Why agents push you to drop conditions

The selling agent works for the vendor, not for you. Conditions create risk for the vendor — a conditional sale can fall over, wasting weeks of marketing time. Common things agents say: "The vendor will only consider unconditional offers" (sometimes true, sometimes a tactic), "Another buyer is offering with no conditions" (may or may not be real, and even if it is, that buyer is taking on risk you should not match blindly), and "You can always get the inspection done after" (technically possible, but you will have no contractual right to walk away if it reveals problems).

The protection is only real if you use it correctly. Everything below is about what each condition actually requires, so you do not become the next case study.

What "subject to" really means

When a contract is "subject to" something, the sale only goes ahead if that condition is met within a set timeframe. If the condition is not satisfied, you can end the contract and get your deposit back.

Every subject-to condition has three parts: what must happen (the specific event, like loan approval or a satisfactory inspection report), when it must happen by (the deadline, stated as a date or number of days), and what you must do (your obligations to make it happen — apply promptly, use reasonable efforts, provide documents). If you miss the deadline or fail to meet your obligations, you may lose the right to rely on the condition, even if the underlying event never happened.

Subject to finance — the condition that collapses most often

This is the most common condition. It makes the sale dependent on your lender granting formal loan approval for the property you are buying. It protects you from your lender declining the loan, valuing the property lower than the purchase price, or changing your borrowing terms after you sign.

Typical timeframes are 14 to 21 days from the contract date, though this varies by state and can be negotiated ^[3]. Your obligations are strict: take all reasonable steps to get your loan approved, apply promptly, provide documents your lender requests, and respond to queries without delay. If you drag your feet or fail to apply at all, the seller can argue you did not meet your obligations and the condition is void ^[2].

Subject to building and pest — the condition that pays for itself

This condition makes the sale dependent on you getting a professional inspection and being satisfied with the results. It covers structural defects, termite damage, rising damp, faulty roofing, and non-compliant renovations — things that are not visible during an open home.

The CSIRO estimates 1 in 5 Australian homes will be attacked by termites over their lifetime, and repair costs regularly range from $5,000 to $30,000 for moderate infestations ^[4]. A combined building and pest inspection typically costs $500 to $900 ^[5]. The timeframe is usually 7 to 14 days from the contract date ^[5], and you need to arrange the inspection and give written notice of any issues within that window. In Queensland, the standard REIQ contract requires notice by 5pm on the inspection date ^[6].

What you can do if the report finds problems:

• Terminate the contract and get your deposit back.
• Negotiate a price reduction to cover the repair costs.
• Ask the seller to complete specific repairs before settlement.
• Accept the issues and proceed with the purchase.

Subject to strata report — the condition that protects you from other owners

If you are buying an apartment, townhouse, or any property in a strata scheme, this condition lets you review the financial health and management of the owners corporation before committing. It protects you from unexpected special levies (sometimes tens of thousands of dollars), building defect disputes, inadequate insurance, poor financial management, or pending legal action within the complex ^[7].

Typical timeframes are 7 to 14 days, though obtaining strata records from the owners corporation can take time. Make sure your timeframe allows for this.

Subject to sale of your existing home — the condition sellers resist

This condition makes your purchase dependent on selling your current home first. It protects you from being stuck paying two mortgages simultaneously if your existing property does not sell in time. Typical timeframes are 30 to 60 days, though this varies widely with the market ^[8].

Sellers are often reluctant to accept this condition because it makes their sale dependent on a third transaction they have no control over. To offset this risk, many sellers will insist on a sunset clause (subject to sale) — the seller can keep marketing the property, and if they get another offer, you typically have 48 to 72 hours to go unconditional or lose the contract ^[8].

Other conditions your conveyancer may recommend

Depending on your situation, your conveyancer might suggest additional conditions:

• Subject to conveyancer or solicitor review — gives your legal representative time to review the full contract and raise objections.
• Subject to satisfactory due diligence searches — covers council searches, planning overlays, flood maps, contamination, and zoning checks.
• Subject to valuation — separate from the finance condition, this protects you if the independent valuation comes in below the purchase price (useful when you have the cash but want to confirm the price is fair).

How conditions actually end

A condition does not just disappear when the deadline passes. There is a specific process, and it differs by state. Generally one of three things happens:

1. 1The condition is satisfied — you got finance, the inspection was fine, and the contract becomes unconditional.
2. 2The condition is not satisfied and you terminate — you give proper written notice and the contract ends with your deposit returned.
3. 3The condition is not satisfied but you miss the deadline — depending on the contract wording and your state, the contract may automatically become unconditional, or either party may gain the right to terminate.

Why agents push you to drop conditions

The selling agent works for the vendor, not for you. Conditions create risk for the vendor — a conditional sale can fall over, wasting weeks of marketing time. Common things agents say: "The vendor will only consider unconditional offers" (sometimes true, sometimes a tactic), "Another buyer is offering with no conditions" (may or may not be real, and even if it is, that buyer is taking on risk you should not match blindly), and "You can always get the inspection done after" (technically possible, but you will have no contractual right to walk away if it reveals problems).