Conditional vs unconditional offers: what sellers need to know
Updated 12 Oct 2026 · 5 minute read
Most offers on New Zealand houses come with conditions. Understanding them is the difference between a sale you can rely on and one that might quietly fall over three weeks later.
The difference in one paragraph
An unconditional offer has no strings attached. Once you both sign, the sale is going ahead. A conditional offer depends on certain things happening first, such as the buyer's bank approving their loan. Until those conditions are met, the sale isn't certain.
The common conditions
- Finance. The buyer needs their lender to approve the loan.
- Building report. The buyer wants a builder to inspect the house.
- LIM. The buyer wants to read the council's Land Information Memorandum.
- Toxicology report. The buyer wants the house tested for contamination.
- Sale of the buyer's own house. The buyer can only go ahead once theirs has sold.
- Solicitor's approval or due diligence. The buyer wants time for their lawyer to check everything.
How long conditions run
Each condition has a deadline written into the agreement, counted in working days. Ten to fifteen working days is common, but it's negotiable. Shorter is better for you, as long as the buyer can realistically meet it.
The buyer has to make a real effort to meet their conditions. They can't use a condition as an excuse to walk away for an unrelated reason.
What happens when a condition is, or isn't, met
When the buyer's lawyer confirms every condition is satisfied, the sale goes unconditional. From then on both of you are committed, and the next step is settlement day.
If a condition can't be met by its deadline, the agreement can usually be cancelled and any deposit paid goes back to the buyer. Sometimes the buyer asks for more time or a lower price instead, for example after a building report. You don't have to agree. Talk to your lawyer before you reply.
How to weigh a conditional offer
- Count the conditions. Fewer is better.
- Check the time frames. A finance condition of five working days is very different from twenty.
- Ask whether finance is already pre-approved.
- Be careful with offers that depend on the buyer selling their own house. You're relying on a sale you can't control.
- Compare it with any unconditional offer on the table. Certainty has a value.
There's more on comparing offers in how to negotiate offers.
Can you keep looking for buyers while a sale is conditional?
You can keep showing the house and you can take a backup offer, which only takes effect if the first sale falls over. Some agreements also include an escape clause. It lets you give the first buyer a few days to go unconditional or step aside if a better offer arrives. Your lawyer can add one. They're most often used when the buyer still has to sell their own house.
How Praedium helps
On Praedium, buyers choose their conditions and time frames when they make an offer, so you see them set out clearly beside the price. Praedium Copilot, your AI coach, suggests what to counter and gives its reasons. You decide.
Common questions
Is a conditional offer legally binding?
Yes. Once both sides have signed, it's a binding agreement that depends on the conditions being met. Neither side can simply change their mind.
Can a seller accept another offer while a sale is conditional?
Only as a backup offer, unless the first agreement has an escape clause. You can't sell the same house twice. Ask your lawyer before you sign a second agreement.
When is the deposit paid?
When the agreement says. It's commonly due either when the agreement is signed or when the sale goes unconditional.
This guide is general information for New Zealand home sellers, not legal, financial or tax advice. Praedium is not a real estate agent. Every sale is different, so talk to your own lawyer or conveyancer before you sign anything.