Unconditional agreement

An unconditional agreement is a sale and purchase contract with no outstanding conditions — either it was never conditional, or every condition has been satisfied or waived. Both parties are bound to settle on the agreed date at the agreed price.

When it happens

Either at signing (auction sales, and some negotiated deals), or when the last condition is confirmed and your lawyer declares the agreement unconditional.

What it means practically

• The purchase must complete
• The deposit is typically payable, usually 10%
• Risk generally passes to the purchaser — insurance should be in place from this point
• You are committed regardless of what you discover afterwards

The cost of failing to settle

Serious. The vendor can charge default interest, keep the deposit, resell the property and sue for any shortfall plus costs. It is one of the more expensive mistakes available in property.

Common misunderstanding

Finance approval is not the same as unconditional finance. Pre-approval is subject to the specific property, a valuation, and conditions. Going unconditional on the strength of a pre-approval, before the bank has approved this property, is a genuine risk — and it happens most often at auction.

Insurance must be arranged before you go unconditional, not before settlement. If the property burns down in between, it is generally your problem.

Related terms

Last reviewed: 1 August 2026 · General information only, not legal advice.

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