Conditions and key dates

What it is

A conditional agreement is binding, but it lets you cancel if a named condition is not satisfied by its date. The common ones are finance, LIM, building report and a general due diligence condition. Each has a number of working days attached. Working days exclude weekends, public holidays, regional anniversary days and the period from 24 December to 5 January.

Why it matters

A due diligence condition lets you cancel if you're not satisfied with your due diligence, as the clause sets out. A building report condition only lets you cancel if the report is unsatisfactory on an objective assessment, meaning a reasonable buyer would also be concerned. A finance condition means you must actually try to get finance. Choosing the right mix, and the right number of days, decides how much protection you really have. Getting the first working day wrong by one day can mean the condition is deemed satisfied.

How we handle it

We draft the conditions rather than accepting the agent's wording, we calculate every date and put it in a shared key-dates list, and we chase the reports so you have time to negotiate before the condition date. If something turns up we tell you whether to cancel, extend or renegotiate, and we do the paperwork for whichever you choose.

Common traps

• Counting the day of signing as day one.
• Agreeing to five working days for a building report when inspectors are booked out for seven.
• Letting a condition date pass without confirming or cancelling in writing.
• Confusing an OIA condition with the residential land statement every buyer has to sign.