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Avoid special conditions that unfairly limit your rights or increase your financial risk. Examples include broad “as is” clauses, unclear finance conditions, restrictions on termination rights, seller-friendly settlement extensions, early deposit release clauses, and provisions that transfer unexpected costs or liability for non-compliant building works to the buyer.
1. Broad “As Is” Clauses
An “as is” clause states that the buyer accepts the property in its current condition.
While some level of wear and tear is expected, overly broad clauses may attempt to limit the seller’s responsibility for:
- Property defects
- Illegal building works
- Damage discovered after signing
- Non-compliant structures
These clauses can become risky if the buyer has not conducted thorough inspections before signing the contract.
2. Clauses Limiting the Buyer’s Rights to Terminate
Some special conditions attempt to restrict a buyer’s ability to withdraw from the contract, even if serious issues are uncovered.
Examples include:
- Restricting finance approval rights
- Removing cooling-off protections
- Narrowing building inspection conditions
- Imposing strict timeframes for objections
If these clauses are drafted unfairly, buyers may become locked into a contract they cannot safely proceed with.
3. Unclear Finance Clauses
Finance conditions should be carefully drafted to protect the buyer if loan approval is not obtained. Poorly worded finance clauses can create issues such as:
- Unrealistic approval deadlines
- Vague lender requirements
- Limited rights to terminate
- Disputes over whether “reasonable efforts” were made
Without proper wording, a buyer could risk losing their deposit if finance falls through.
4. Seller-Friendly Extension Clauses
Some contracts contain clauses allowing the seller to extend settlement dates under broad circumstances. This can create problems if the buyer has:
- Organised removalists
- Given notice to a landlord
- Locked in finance arrangements
- Planned to move into the property immediately
Long or undefined extension rights may lead to costly delays and uncertainty.
5. Clauses Passing Unreasonable Costs to the Buyer
Special conditions may attempt to transfer unexpected expenses onto the purchaser. These costs can include:
- Owners corporation fees
- Land tax adjustments
- Compliance costs
- Outstanding permits
- Legal or administrative fees
Buyers should carefully review all financial obligations before signing.
6. Early Release of Deposit Clauses
Some contracts allow the seller to access the buyer’s deposit before settlement.
While this is sometimes lawful, it can increase the buyer’s risk if:
- Settlement does not proceed
- There is a dispute later in the transaction
- The seller experiences financial difficulties
Buyers should fully understand the implications before agreeing to early deposit release terms.
7. Clauses Relating to Building Works or Renovations
If the seller has completed renovations or extensions, special conditions may attempt to limit liability for approvals or workmanship. This can become problematic if:
- Permits were not obtained
- Works are non-compliant
- Future rectification is required
- Insurance claims arise later
Buyers should always investigate whether proper approvals and certificates are in place.
Why Professional Contract Reviews Matter
Special conditions can significantly affect your legal rights and financial position. Many clauses appear harmless at first glance but may contain complex legal wording with serious consequences. An experienced conveyancer or property lawyer can:
- Explain the meaning of special conditions
- Identify unfair or risky clauses
- Recommend amendments before signing
- Ensure the contract protects your interests
- Help avoid costly disputes later
Reviewing the contract before signing is far easier — and far less expensive — than trying to resolve problems after the transaction is underway.
Tips for Buyers Before Signing a Contract
Before committing to a property purchase, buyers should:
- Read the full contract carefully
- Obtain a professional contract review
- Conduct building and pest inspections
- Clarify unclear clauses in writing
- Avoid signing under pressure
- Ensure finance conditions are appropriate
Even experienced property buyers can overlook risks hidden in special conditions.
Should you have questions about property contract or any conveyancing concerns, contact Red Door Conveyancing on 03 8456 6797 or submit a contact form for faster transaction.
