Unconditional Contract in QLD: Point of No Return
Plain English Definition
A contract becomes unconditional when all conditions (such as Subject to Finance and Building and Pest Inspection) have been satisfied, waived, or have expired. At that point, both parties are legally and absolutely obligated to complete the transaction on the settlement date. There is no legal right to withdraw, and doing so means you are in default.
The Danger Zone: Buyer's Risk
Becoming unconditional locks you in — the consequences of default are severe:
- Deposit forfeiture — If you cannot settle, the seller is generally entitled to keep your entire deposit (typically 10% of purchase price).
- Damages claim — Beyond the deposit, the seller can sue for the difference between your contract price and what they eventually sell the property for (at a lower price in a falling market).
- Bridging loan trap — Buyers who went unconditional expecting their existing home to sell, and that sale falls through, are now exposed on two fronts.
- Condition expiry without notice — If your finance clause expires while you're still waiting for formal approval, the contract may automatically become unconditional in some circumstances. Silence equals risk.
- Signed waiver of conditions — Some buyers sign unconditional contracts at auction or in heated markets. Without any conditions, there is no exit at all.
Real-Life QLD Scenario
After a long search, Lucy found a unit in South Brisbane and waived all conditions to beat competing offers — signing an unconditional contract at $620,000. Three weeks later, her bank's valuation came in at $560,000. Her lender would only finance 80% of the valuation, leaving a $108,000 shortfall she couldn't fund. Unable to settle, she lost her $62,000 deposit and the seller pursued her for an additional $40,000 in losses when the property resold lower.