When is a build contract considered unconditional?

In Australian house and land sales, a build contract is considered unconditional when all contingencies or conditions in the contract have been met, waived, or expired—similar to a land contract. At that point, both parties are legally bound to proceed with construction.

Common Conditions in a Build Contract

1. Finance Approval
   • The buyer must obtain formal construction finance approval (often after the land becomes unconditional or registers).

   • Once approval is granted and the buyer notifies the builder, this condition is satisfied.

     Land Ownership or Settlement

   • Many builders require the land to be settled (i.e. the buyer legally owns the lot) before making the contract fully binding.

   • Some allow conditional signing but won’t make it unconditional until land ownership is confirmed.

     Council or Developer Approvals

   • Sometimes contracts are subject to approvals such as covenants, building guidelines, or DA/BA (development/building application).

   • Once obtained, the contract becomes unconditional.

     Pre-Construction Requirements

   • These may include:
     • Signed plans
     • Color selections

     • Soil test / contour survey (often included in the fixed-price process)

       Timeframe Expiry

   • If the buyer does not terminate within a condition period (e.g., 21 days for finance), the contract may automatically become unconditional.

In Practice:

A build contract is usually considered unconditional when:

• Finance is formally approved;
• The land is settled (or the builder is satisfied with the buyer’s legal right to build on it);
• All pre-site documents and selections are completed;
• The builder confirms the contract is now binding.

Once unconditional:

• The buyer is locked into the construction and payment schedule;
• The builder is expected to proceed to site preparation and build within agreed timelines;
• Termination becomes difficult and may carry significant financial penalties.

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