Making an offer on a home is one of the most important steps in buying a property, and understanding the difference between conditional and unconditional offers can help you protect your interests, and avoid costly surprises. This is especially important in South Australia, where cooling-off rules and contract structures can vary slightly from other states.
Here’s what you need to know about the two main types of offers buyers can make, and how to decide which is right for you.
What is a conditional offer
A conditional offer means your purchase of the property depends on certain conditions being met. It’s the most common type of offer in South Australia, particularly for buyers who are buying a property privately (not at auction). Conditions might include finance approval, a satisfactory building or pest inspection, sale of an existing property, or legal checks by your conveyancer.
These offers give you flexibility and a level of protection. For instance, if your finance falls through or a building inspection uncovers major defects, you may be able to withdraw without penalty, provided your conditions were clearly included in the contract. Most private sale contracts in SA also come with a cooling-off period of two business days after contract exchange, offering further peace of mind.
What is an unconditional offer
An unconditional offer means you’re committing to buying a property with no conditions attached. You’re effectively saying you’re ready to proceed without needing any further checks, approvals or inspections.
Unconditional offers are typically made at auction, but they can also be submitted for private treaty sales if you’ve completed all your due diligence. This type of offer can be attractive to sellers, especially in competitive markets where a quick and certain sale is desirable. However, it comes with increased risk. If your finance is later declined or an issue is discovered with the property, you’re still legally bound to proceed. It’s important to note that unconditional offers do not come with a cooling-off period.
Choosing the right offer when buying a property
If you’re buying a property in South Australia, deciding between a conditional and unconditional offer depends on your financial readiness, confidence in the property’s condition, and the level of competition you’re facing.
A conditional offer provides a safety net, perfect if you’re still finalising your home loan, waiting on inspection results, or managing the sale of another home. If you’re in a stronger position, an unconditional offer might help you stand out, but you need to be certain about every part of the deal. Even if you’re making a conditional offer, you can strengthen it by offering a shorter finance clause, a more flexible settlement date, or a higher deposit.
What to expect when buying a property after your offer is accepted
After your offer is accepted, you’ll sign the contract of sale and pay the deposit, which is usually around 10 percent. If you’ve made a conditional offer, your conveyancer will manage the timelines and ensure your conditions are met within the agreed timeframe. If finance falls through or an inspection reveals a problem, you may be able to walk away, but only if the condition is properly included in your contract.
If your offer was unconditional, the process moves straight to settlement, and you’ll be expected to follow through regardless of what happens next. The contract is legally binding, and your deposit may be at risk if you pull out.
If you’re unsure about your rights, or the process of offers and acceptance in SA, check out Consumer and Business Services SA for clear guidance.
Thinking about buying a property in Adelaide?
At AMKAR Real Estate, we’re here to walk you through every step, from inspections and offers to settlement and beyond. Whether you’re a first-time buyer or a seasoned investor, our support-focused approach means you’re never in the dark.