A conditional agreement is a binding contract that only completes once stated conditions are met. Common conditions and how the dates work.
A conditional agreement is a legally binding sale and purchase contract where the sale does not complete until specified conditions have been satisfied or waived.
It is binding from the moment both parties sign. The conditions are not an escape hatch from the contract — they are defined circumstances under which a party may cancel. Treating a conditional agreement as non-committal is a costly mistake.
Each condition has a date by which it must be satisfied. Miss the date without an agreed extension and you may lose the ability to rely on it.
Vendor conditions usually work differently from purchaser conditions. A purchaser's condition typically allows cancellation. A vendor warranty or condition more often allows the purchaser to delay settlement, withhold funds or claim damages, rather than to walk away.
"Subject to finance" is not open-ended. It generally means finance on reasonable terms from a recognised lender, and you may be required to show you genuinely applied and were declined.
Last reviewed: 1 August 2026 · ---
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