QLD Contract Conditions (Plain English)

Buying or selling a place should be exciting, right? New chapter. Fresh start. Maybe a bit of reno daydreaming.

Then the contract lands in the inbox and suddenly it’s… clauses, dates, “subject to”, and a bunch of deadlines that feel like they were invented purely to cause stress.

This is the part that’s understandably confusing. Because most people assume a contract is just: price, deposit, settlement date. Done.

But wait, there’s more to it.

In Queensland, standard contracts (like the REIQ form) often include conditions that can make or break the deal—especially for buyers. Finance. Building and pest. Cooling-off. And each one has its own little trapdoors if the timing or wording isn’t handled carefully.

So here’s a plain-English walk-through of the typical conditions and what they mean in real life. No legal fluff. Just the stuff that matters when the clock is ticking.

First up: a “condition” isn’t a vibe — it’s a deadline with consequences

Lot of people think “subject to finance” means the buyer can just change their mind if they get cold feet.

Not quite.

A contract condition is more like: the deal will go ahead if X happens by Y date. If it doesn’t happen, certain rights kick in—sometimes termination, sometimes extensions, sometimes… problems.

And here’s the kicker: time limits apply. Miss one. Forget to give a notice. Assume the agent “will handle it”. That’s when a straightforward purchase becomes a bit of a headache.

Pro tip: conditions are not just words on the page. They’re a workflow.

“Subject to finance”: sounds simple, but it’s where buyers get burnt

This always surprises people: “subject to finance” does not mean “apply whenever”.

Under the REIQ-style approach described in the source, the finance condition usually requires the buyer to obtain loan approval by a specific date, on terms satisfactory to the buyer.

Now, “satisfactory” sounds like a get-out-of-jail-free card. It isn’t. It means a buyer must act honestly when deciding if the finance suits their needs.

Also—and this matters—buyers typically must take all reasonable steps to obtain approval. So a buyer can’t just… not apply and then say finance wasn’t approved. That can be a breach.

A very real scenario: someone signs on a Friday night, assumes the broker will sort it Monday, and then doesn’t provide documents for a week because life happens. Meanwhile the condition date is creeping closer. Then the bank asks for more info. Then valuation is delayed. Then everyone is stressed.

And if the buyer mishandles it, there can be serious consequences: losing the deposit and potentially being liable for the seller’s losses (depending on what happens and what can be proven).

Yeah. Not fun.

The sneaky detail: “approved” doesn’t always mean approved

Here’s where it gets interesting.

Some finance approvals are conditional. For example, “approval subject to valuation”. That means the bank still has an “out” if the valuation doesn’t stack up.

So when a buyer tells the seller “finance is approved” too early—before it’s actually unconditional—they can accidentally remove their own safety net.

This is a classic trap. People are trying to be helpful, trying to move things along, trying not to look difficult… and then it backfires.

Worth noting: the safest approach is usually to confirm what “approval” really means in the bank’s letter and how it lines up with the contract wording before giving any notices.

Building and pest: not just a checkbox, it’s a negotiation lever

Most buyers have heard of a building and pest condition. But the practical reality is more nuanced.

Typically, the contract condition is about obtaining a written report from a licensed inspector by the inspection date, on terms satisfactory to the buyer.

Now, “satisfactory” again sounds subjective. But buyers usually need to act reasonably if they want to terminate based on the report. So it’s not meant to be used as a random excuse to bail because the neighbour’s dog barks.

A realistic example: a family gets a report showing active termites, moisture ingress, and a roof issue. They’re stressed because they’ve already pictured Christmas lunch in the backyard. Understandable. But it’s also a moment for clear thinking.

Under the kind of framework described in the source, buyers often have three practical options:

1. Terminate (if acting reasonably) and get the deposit back.
2. Ask the seller to fix issues—seller can say yes or no. If no, buyer may be able to terminate.
3. Negotiate a price reduction and do the works themselves (and notify the financier if the price changes).

This is the part people don’t expect: the building and pest condition isn’t only about “yes/no”. It can be a structured way to renegotiate risk.

Pro tip: choose inspectors properly. Licensing matters, and the report quality varies. Getting quotes in advance also helps, because inspection costs can add up quickly.

Swimming pool inspections: the one that gets forgotten until it’s urgent

In Queensland, pools have safety compliance requirements—fences, signage, standards.

A pool inspection can be part of the broader inspection plan, but it’s often treated like an afterthought. Until the report flags non-compliance and suddenly there’s a scramble: Who pays? Who fixes? How long will it take? Can settlement still happen?

This is one of those “small” issues that becomes big purely because it wasn’t planned for early.

The cooling-off period: yes, it exists… but don’t rely on it casually

A cooling-off period of five days applies to residential property contracts in Queensland (as described in the source). A buyer can change their mind about the sale during this time.

But—and it’s a big but—it generally doesn’t apply to auction purchases. So if someone buys at auction thinking there’s time to think later… that can be a nasty surprise.

Also, even when a cooling-off period applies, it’s not a strategy. It’s a safety net. Different thing.

This always surprises people: some buyers treat cooling-off like a free option. Then they find out there can still be costs or consequences depending on how it’s exercised and the contract terms.

Extensions: sometimes easy, sometimes a hard no

Let’s say finance isn’t ready by the due date. Or the building and pest report is delayed. What then?

Sometimes the seller agrees to extend the condition date. Sometimes they don’t. It’s their discretion.

This is where early communication matters. If the condition date is tomorrow and the buyer asks for an extension at 4:55pm… the seller is more likely to say no out of sheer frustration.

Worth noting: if there’s any chance a condition won’t be met on time, it’s smart to raise it early. Like, days early. Not hours.

So what does this mean for you?

If buying: conditions are there to protect the buyer, but only if they’re managed properly. The buyer has to do the practical steps—apply for finance, book inspections, read the reports, give notices on time.

If selling: conditions can be fine, but they affect certainty. A seller wants to know: is this buyer serious, organised, and likely to proceed? Or is this going to drag out and fall over?

Either way, the contract is not “just admin”. It’s the roadmap.

And this is exactly why a legal professional experienced in real estate and conveyancing can be so valuable early on. If anything feels unclear or the dates are getting tight, it’s also the right moment to seek legal advice—before the contract is signed and the deadlines are already breathing down everyone’s neck.

FAQ: real questions people ask (usually when it’s already urgent)

What does “subject to finance” actually mean?

It usually means the contract depends on the buyer obtaining loan approval by a stated date on terms satisfactory to the buyer, and the buyer must take all reasonable steps to obtain that approval.

Can a buyer just not apply for finance and terminate?

Generally, no. Failing to take reasonable steps (like not applying) may be a breach and can expose the buyer to losing the deposit and possibly damages.

Is “finance approved” the same as unconditional approval?

Not necessarily. And yeah, it’s annoying.

Banks love wording that sounds final… while quietly keeping a condition in the background. “Subject to valuation” is the classic one. So the safest move is simple: read the approval letter properly (or get it checked) and make sure it’s actually unconditional before telling the seller finance is done and dusted.

What happens if the building and pest report is bad?

Depends what “bad” means.

A few cracked tiles? Probably not the end of the world. Active termites, roof problems, structural movement… different story.

Usually there are three practical paths: walk away (if it’s reasonable to do so under the contract), ask the seller to fix things, or try to renegotiate the price so the buyer does the works. And here’s the catch—sellers don’t have to agree to repairs or discounts. Sometimes they do. Sometimes it’s a flat “no”.

Does the cooling-off period apply if buying at auction?

Generally, no. Auctions are usually “when the hammer falls, that’s it”.

So if someone is counting on a cooling-off period after an auction win… that’s where the panic call happens later. Better to confirm the rules before bidding, not after.

Can the buyer ask for an extension of a condition date?

Yep, an extension can be asked for. Whether it’s granted is another story.

Some sellers are relaxed and will give a few extra days. Others want certainty and won’t budge. Either way, leaving it until the last minute is the fastest way to get knocked back—because it looks disorganised, even if it’s just bad luck with a bank or inspector timing.

Neutral next step

If the contract is sitting there ready to sign, or it’s already signed and the dates are looming… don’t just hope it’ll all work out.

Get the conditions checked early. Not because anyone loves paperwork, but because missing a notice date or accidentally waving a condition can cost real money—deposit money. The cheap time to fix issues is before the deadlines. The expensive time is when the seller’s already lining up the next buyer.

Legal disclaimer

This is general information only. It isn’t legal advice, and it won’t fit every contract or every situation.

Property contracts can turn on tiny details—dates, notices, special conditions—so proper advice should be obtained from a qualified Australian legal practitioner before acting on anything here.