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Special Conditions in Queensland Property Contracts: What Sellers Need to Know

Not all contract conditions are standard. Here's how to evaluate special conditions in a Queensland property contract, which ones are reasonable, and when to push back.

When a buyer submits an offer to purchase your property, they may include conditions beyond the standard ones already built into the REIQ contract. These are called special conditions, and they can range from entirely reasonable requests that reflect genuine circumstances to terms that would put you at a significant disadvantage if you signed them without understanding what you were agreeing to. Knowing how to read a special condition and how to respond to it is one of the less-discussed but genuinely important skills for sellers working through the Queensland contract process.

The standard REIQ contract already contains a number of conditions that protect both parties: the finance clause, the building and pest inspection clause, and the cooling-off period. Special conditions are additions that one party is seeking outside the standard terms. In practice, most special conditions in residential contracts come from buyers rather than sellers, though sellers can and do insert special conditions of their own when circumstances warrant it.

What separates a standard condition from a special condition

Standard conditions in the REIQ residential contract are pre-drafted terms that apply automatically to every contract using that form. They cover how the finance clause works, what the buyer's inspection rights are, how settlement is conducted, and what happens if either party defaults. These terms are well-understood, have been tested in Queensland courts, and provide a reasonable baseline for both parties.

Special conditions are additional or modified terms that are not part of the standard form. They must be drafted specifically for the contract in question, either by the buyer's solicitor, the seller's solicitor, or in some cases by the agent. When a special condition is poorly drafted, it can be unenforceable or create ambiguity that causes problems at settlement. When it is well-drafted but one-sided, it can expose the seller to risk that they did not anticipate when they accepted the offer.

Common special conditions and what they mean for you

Subject to sale of buyer's existing property. This is one of the most common and most seller-unfavourable special conditions in the Brisbane market. It means the buyer's obligation to complete is contingent on them first selling their own home. From a seller's perspective, this converts an unconditional sale into something much more uncertain. You are effectively taking your property off the market while waiting for the buyer's sale to complete, without knowing when or whether that sale will happen. Unless the price offered is substantially above market, accepting a sale-of-property condition typically costs you more in opportunity than you gain in having a signed contract.

If you choose to accept a sale-of-property condition, insist on a sunset clause: a date by which the buyer must either produce an unconditional contract on their own property or the contract is at an end. Forty-five to sixty days is a reasonable timeframe. Without a sunset clause, you could be tied up for months with no certainty.

Subject to FIRB approval. Foreign Investment Review Board approval is required for most foreign nationals purchasing established residential property in Australia. When a buyer includes a FIRB special condition, they are signalling that they are a foreign national or foreign entity subject to FIRB's residential real estate rules. The condition is usually reasonable, as FIRB approval is generally granted for eligible purchases, but it does add a timeframe. FIRB applications typically take 30 days, so the condition should specify a reasonable approval date and what happens if approval is not obtained within that period.

Subject to satisfactory lease review. This appears in contracts for tenanted properties where the buyer wants the right to review the existing lease documents before being committed to purchase. If your property is tenanted, this is a reasonable request. The buyer is entitled to understand what tenancy obligations they are taking on. The condition should specify what constitutes "satisfactory" review and what the buyer's rights are if they determine the lease is unsatisfactory. Vague language here can create disputes.

Extended settlement. A buyer may request a settlement date longer than the standard 30 to 45 days, sometimes significantly longer. This may be reasonable if the buyer needs time for finance approval on a construction loan or is waiting for a specific date for personal or financial reasons. The question for you as a seller is whether the extended period creates a problem for your own plans. If you are also buying, locking in a six-month settlement may create complications. Extended settlements can also carry risk if the buyer's financial or personal circumstances change during the extended period. A longer settlement is generally more acceptable when the contract is unconditional (no finance or building clauses remaining) at the time the settlement extension is agreed.

Deposit held in trust. The standard REIQ contract specifies how the deposit is held. Some buyers request variations to the deposit arrangements, either in terms of the amount, the timing of payment, or who holds it. These variations should be reviewed carefully by your solicitor. A lower than standard deposit (below 10% of the purchase price) means less financial security for you if the buyer defaults.

How to evaluate whether to accept a special condition

The starting point is to understand exactly what the condition requires and what happens if the condition is or is not met. Your solicitor should translate the legal text into plain English: what is the buyer asking for, what are your obligations under this condition, and what are the consequences for each party if the condition is not satisfied?

Next, consider whether the condition has a clear and enforceable termination mechanism. A condition that allows a buyer to terminate for any reason relating to their "satisfaction" with a particular matter is far more buyer-favourable than one that specifies objective criteria for what constitutes satisfaction. The more subjective the condition, the more use the buyer has to walk away.

Finally, weigh the commercial reality. If you are negotiating in a strong seller's market with multiple interested parties, you have the ability to ask the buyer to remove or modify the condition, or to accept a competing offer without it. If you are the only serious buyer in a softer market, the calculus is different. Your agent should be able to tell you honestly how much use you have and what the realistic alternatives are.

Negotiating special conditions without losing the buyer

Pushing back on a special condition does not have to mean refusing to proceed. There are usually intermediate positions. A sale-of-property condition can be accepted with a tight sunset clause and a first-right clause that allows you to continue marketing and accept a better offer (with the original buyer having a short window to go unconditional if a competing offer appears). A vague "satisfactory" condition can be reworded with objective criteria. An extended settlement can be accepted with penalty interest provisions that apply after the standard period.

The key is to have your solicitor draft the counter-position clearly and quickly. Buyers who include special conditions generally expect some pushback. What they are less likely to tolerate is a prolonged negotiation or a delay in the seller's response. A clean counter-offer that addresses the seller's concerns while leaving room for the buyer to accept is the most effective negotiating approach.

Special conditions that are genuine red flags

Some special conditions should prompt serious hesitation regardless of the price offered. Conditions that allow the buyer to conduct additional inspections with no defined scope or deadline, conditions that require the seller to undertake remediation work with no defined standard or completion date, and conditions that modify the standard deposit arrangements without clear protections for the seller are all worth examining carefully.

A buyer who presents a contract heavily loaded with vague or buyer-favourable special conditions drafted without input from a solicitor is a flag that this buyer may not have experienced professional advice and may encounter problems at settlement. A well-represented buyer tends to have cleaner and more precisely drafted conditions even when they are negotiating hard.

The role of your solicitor

Your solicitor is the essential professional for reviewing special conditions. Agents can explain the commercial context and implications of conditions they encounter regularly, but the legal effect of specific contract language requires legal review. Do not sign a contract with special conditions that your solicitor has not reviewed, regardless of time pressure. A buyer who is genuinely committed will wait the 24 to 48 hours required for your solicitor to review and respond. A buyer who applies extreme pressure to sign immediately without legal review is a risk factor.

If you are using a solicitor who is not active in Queensland residential conveyancing, the nuances of REIQ contract practice and local special condition norms may not be within their regular experience. Solicitors who work in Brisbane inner-east residential conveyancing daily will have a very clear picture of which special conditions are routine and which are unusual, and can advise you accordingly.