Making an Offer Quiz

Conditional vs. Unconditional Offers

Conditional Offer

• Your purchase depends on certain conditions being met.

• Common examples: finance approval, building inspection, LIM report, sale of another property.

• Gives you an “exit” if issues are uncovered.

Unconditional Offer

• No conditions attached — once accepted, you’re legally bound to buy.

• Often more attractive to sellers (especially in hot markets).

• Riskier for buyers, as you take on all responsibility.

Offer Quirks in New Zealand

• Deadlines: Offers usually have a set expiry (e.g., 5pm the next day). If the seller doesn’t respond, the offer lapses.

• Auctions: In NZ, auction sales are always unconditional. You must have finance and due diligence sorted before bidding.

• Negotiation: Private treaty sales allow back-and-forth — sellers can counter-offer or negotiate terms.

Buyer Protection Tips

• Add conditions when needed: If you’re unsure about finance, property condition, or council consents, include those clauses.

• Be selective: Too many conditions may put sellers off. Focus on what truly matters (finance + property checks).

• Know when to go unconditional: If you’ve already completed checks (e.g., pre-auction), a clean offer may win the deal.

• Always have a lawyer review: They’ll make sure conditions are worded properly so they protect you.

Offer Process Timeline (Typical Example)

1. Day 1 – You submit your offer through your lawyer or agent.

2. Day 2 – Seller reviews and may accept, reject, or counter.

3. Days 3–10 – If conditional, you work to meet conditions (finance, inspection, LIM).

4. Condition Deadline – You confirm conditions are met (or withdraw).

5. Unconditional – Once all conditions are cleared, the contract is binding.

6. Settlement Day – Transfer of ownership and keys.