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There are two terminologies when it comes to real estate contracts of sale, conditional and unconditional. Depending on the scenario of a sale, will depend on how your offer will considered by the vendor. In competition, an unconditional contract will put you in the driver’s seat. Though one on one, a conditional contract can give you peace of mind.

But what is difference between the two? Simply put, a conditional contract is an offer submitted with different clauses to safeguard a buyer. The most common conditions are finance clauses and building and pest inspections. But, depending on the property that is being bought and the situation of the seller, there can be an array of different clauses added. Anything from repairs being done before settlement all the way through to the buyer selling their property before they commit unconditionally.

An unconditional offer on the other hand has more power to secure a sale. It also gives a buyer bargaining power against the owner, as it is known as a clean sale. The only thing the owner must wait for is the three-day cooling off period to expire, one that has lapsed, a sold sticker can go up. An unconditional offer has no clauses or special conditions added to the offer. An auction is usually an unconditional offer unless the buyer and owner have agreed on any additional clauses prior to the auction commencing.

As mentioned, there is a time and a place on whether you should add conditions to the contract or not. Simply put, if you are in a competitive buying situation, you are better off putting your best foot forward and offering an unconditional contract of sale. But, if you are negotiating one on one with a vendor, then make sure you add a couple of common safeguards, just for peace of mind.



The following advice is of a general nature and intended as an opinion and broad guide. For all legal, financial or real estate advice you should obtain independent professional advice to do with the specific nature of your circumstances before making any legal, financial or real estate decisions.

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