Conditions and when your sale goes unconditional

Last updated: March 2026. Summarises settled.govt.nz — Understanding the sale and purchase agreement when selling. The REA publishes consumer-facing material alongside settled for anyone dealing with licensed agents; private sellers rely primarily on their lawyer or conveyancer.

Conditional vs unconditional

A conditional agreement means one or more conditions must be satisfied by agreed dates before the sale is locked in. An agreement becomes unconditional when all conditions are met (or waived in line with the contract). Some offers are unconditional from signing — there are no conditions left to clear.

You can negotiate which conditions appear in the agreement. Your lawyer or conveyancer should explain each clause before you sign.

Common buyer conditions (examples from settled.govt.nz)

The following are commonly discussed on settled.govt.nz — wording and effect depend on your actual agreement:

• Title search — buyer’s lawyer checks ownership and interests (e.g. easements, caveats).
• Finance — buyer secures a loan; some agreements address what happens if finance is declined.
• Land Information Memorandum (LIM) — council information on rates, consents, planning, and similar.
• Building / property inspection — often using a registered inspector.
• Valuation — sometimes required by the lender.
• Sale of buyer’s own home — buyer needs to sell their property first.
• Sunset clause — buyer’s offer may expire at a date/time if you haven’t accepted.
• Other reports — e.g. engineer’s or surveyor’s report; toxicology/meth testing in some cases (buyers should discuss necessity with their lawyer).

General obligations in the agreement

Beyond “specific” conditions, agreements usually include obligations about access before settlement, insurance, and what happens if either party defaults. Your lawyer explains how these apply to your sale.

After the agreement is signed

Settled.govt.nz notes that both parties work through the conditions until the agreement is unconditional (where relevant). Once unconditional, you are committed to complete on the terms agreed.

Private sellers

You’ll coordinate access for inspections and supply documents the buyer needs to satisfy conditions (within what the agreement requires). Keep your lawyer informed of dates and any issues so deadlines are met or extended properly.

General information only. Conditions vary by agreement. Not legal advice — consult your lawyer or conveyancer.