2.2.2. Common conditions in an agreement for sale and purchase

Finance condition, building inspection, valuation report, title search, LIM report, engineering report and sale of other property are common conditions in sale and purchase agreements.

Consult a lawyer before you sign a contract

• The conditions you put in any contract to buy real estate will depend on your circumstances and the property.
  
• It is best to discuss this with your lawyer before you enter a contract. 
  
• Most lawyers will gladly review or prepare the conditions you require in any contract to buy real estate.
  

Some typical items that are conditioned for

You should consult your lawyer for their preferred wording.

• Finance.  This gives you time to arrange a suitable loan. Make sure the condition stipulates that finance must be satisfactory to you in all respects. 

• Valuation report. This is an independent professional assessment of the market value of the property and provides you an opportunity to renegotiate or withdraw your offer if you have offered more than the property is worth. This may be a condition of your finance anyway, so it is a wise condition to include. 

• Building inspection. This is similar to an AA check on a car. A good building consultant's report will state whether the building is sound and will identify any problems that might cost money to fix. A report of this nature is a wise and increasingly common precaution. 

• Title search. Your lawyer should check that there are no problems with the title or restrictions, covenants or easements that you need to know about. 

• LIM report. So you can check what the council knows about the property and make sure there are no problems with things like building consents or flooding. 

• Engineering report. An investigation of structural issues or the stability of the land. 

• Sale of property. You may need to sell your property before you are committed to buying another property. This can be accommodated in your offer. 

• Other conditions.  You might want to make other conditions to cover things like repairs that the seller must complete before you take ownership.
  

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