Sale & Purchase Conditions Explained
From finance and builder's reports to OIE clauses, here's what each common sale condition actually protects and how to use them well.
Conditions are the levers in a sale and purchase agreement that let you walk away (or renegotiate) if something turns out differently than you expected. This guide explains the common ones in plain English, for both buyers and sellers.
Finance condition
A finance condition lets a buyer confirm their lending is approved for this specific property, at this purchase price. If the bank declines or reduces the loan, the buyer can cancel. For sellers, a tight finance deadline (5 to 7 working days) keeps the deal moving without an open-ended escape hatch.
Builder's report / LIM / OIE
- Builder's report: a satisfactory independent inspection, usually within 5 to 10 working days.
- LIM: buyer reviews the council's Land Information Memorandum for consents and hazards.
- OIE (Other Information and Evidence): a broader catch-all for due diligence, title review, and specialist reports.
Conditions protect you. Don't treat them as optional, and don't let them run longer than they need to.
Deposit and settlement
The deposit is paid on confirmation of the conditions (not on signing), usually 5 to 10 percent of the purchase price. The settlement date is when the balance is paid and the title transfers. Most Christchurch settlements run 15 to 30 working days after confirmation, but everything is negotiable.
When a deal falls over
A deal can fall over if a condition isn't satisfied and the buyer cancels within the condition's timeframe. Sellers can also cancel if conditions aren't met by the deadlines. Either way, talk to your lawyer early, because missed deadlines can change who holds the power in the negotiation.
This guide is general information, not legal advice. Sale and purchase agreements are binding contracts, always have your lawyer or conveyancer review conditions before you sign.
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Steven Overend | Your Local Agent
Licensed Salesperson REAA 2008 | Arizto Ltd. Licensed REAA 2008
Friendly, considered local advice on buying and selling across Christchurch, with a particular passion for the Eastern suburbs. If a guide has sparked a question about your own move, I'd be glad to chat no pressure, just a conversation.