Making an Offer on a House NZ: Conditional vs Unconditional Explained
Quick Answer: To make an offer on a house in New Zealand, you sign a Sale and Purchase Agreement with your proposed price, conditions (such as finance, building inspection, and LIM report), and settlement date. Conditional offers give you time to complete due diligence before committing, while unconditional offers lock you in immediately. A 10% deposit is standard, paid once the agreement goes unconditional.
What's in This Guide
- The Sale and Purchase Agreement Explained
- Conditional vs Unconditional Offers
- Common Conditions and What They Protect
- How Offers Work: Private Treaty, Auction, Deadline Sale & Tender
- What Happens in a Multi-Offer Situation
- Going Unconditional: What It Means and What Happens Next
- Why Work With Hayden Roulston
- Frequently Asked Questions
The Sale and Purchase Agreement Explained
Every property purchase in New Zealand starts with a Sale and Purchase Agreement (S&P Agreement). This is the legal contract between buyer and seller, and the standard form is produced jointly by the Auckland District Law Society (ADLS) and the Real Estate Institute of New Zealand (REINZ). The current version is the 11th Edition, updated in 2024 with plain-language rewording, clearer condition sunset clauses, and explicit recognition of electronic signatures.
The agreement sets out:
- The purchase price
- The names of the buyer and seller
- The property address and legal description
- The settlement date (when ownership transfers)
- Any conditions the buyer wants to include
- Chattels included in the sale (curtains, blinds, light fittings, appliances, etc.)
- The deposit amount and when it is payable
Your real estate agent typically prepares the agreement, but you should always have your lawyer review it before signing. Once both parties sign, the agreement is legally binding — subject to any conditions you've included.
A common mistake for first-time buyers is treating the S&P Agreement as a formality. It's not. The terms you agree to in this document govern everything that happens from the moment your offer is accepted through to settlement day. Get your lawyer involved early.
Conditional vs Unconditional Offers
The most important decision when making an offer on a house in NZ is whether to go conditional or unconditional.
Conditional Offers
A conditional offer includes one or more conditions (also called "subject to" clauses) that must be satisfied before you're fully committed to the purchase. Each condition has a deadline, typically 10-15 working days from the agreement date.
If a condition isn't met — for example, your bank declines the mortgage or the building report reveals serious defects — you can cancel the agreement and get your deposit back. This is your safety net.
Unconditional Offers
An unconditional offer has no conditions. The moment the seller accepts, you are legally committed to buying the property at the agreed price. There is no way out without significant financial and legal consequences.
Unconditional offers are required at auction and sometimes necessary in highly competitive markets to beat other buyers. But they carry real risks:
- If your finance falls through, you're still obligated to buy
- If a building inspection would have revealed major defects, you're stuck with them
- If the bank valuation comes in lower than your offer, you fund the shortfall yourself
- The seller can sue for specific performance or claim your deposit if you can't settle
Only make an unconditional offer if you've already completed your due diligence (building report, LIM, title review) and have confirmed, unconditional finance — or you're a cash buyer.
Common Conditions and What They Protect
Here are the conditions most Christchurch buyers include in their offers, and why each one matters.
Finance Condition
The most common condition. It gives you time to get formal mortgage approval from your bank. Pre-approval is not the same as full approval — your lender still needs to assess the specific property. Typical timeframe: 10-15 working days.
Building Inspection
A professional building inspector checks the property for structural defects, moisture issues, weathertightness problems, and non-consented work. This is especially important in Christchurch, where earthquake damage and repairs are still a factor in many older homes. A thorough home inspection can save you from buying a property with hidden problems. Typical cost: $400-$800+ depending on the property size.
LIM Report
A Land Information Memorandum from Christchurch City Council reveals building consents issued, zoning, natural hazards (including liquefaction and flood zones), rates, and compliance issues. It costs $250-$400 and processing takes around 10 working days. For a deeper look at what a LIM covers, see our LIM report guide.
Valuation
A registered valuation confirms the property is worth what you're paying. Your bank may require this before approving your mortgage. If the valuation comes in lower than your offer price, you'll either need to renegotiate, make up the difference in cash, or walk away (if you still have a finance condition in place).
Toxicology / Meth Test
Tests for methamphetamine contamination. Remediation can cost $20,000-$100,000+, so this is increasingly common, especially for properties that have been rentals. Typical timeframe: 5-10 working days.
Solicitor Approval
Gives your lawyer time to review the title, check for easements, covenants, caveats, or cross-lease issues, and flag anything that could affect your ownership or future plans.
Sale of Buyer's Property
If you need to sell your current home before buying, this condition gives you a window to do so. It makes your offer weaker in the seller's eyes, as it introduces uncertainty about whether the sale will proceed.
How Offers Work: Private Treaty, Auction, Deadline Sale & Tender
The way you make an offer depends on how the property is being sold. Here's how each method works in New Zealand.
Private Treaty (By Negotiation / Listed Price)
The most common method. The property is listed with a price or "price by negotiation." You submit a written offer through the S&P Agreement, and the seller can accept, reject, or counter-offer. Conditions are normal and expected. There's no fixed deadline — the property stays on the market until an offer is accepted.
Auction
The property is sold at a public auction to the highest bidder. All bids are unconditional — if you win, you're committed immediately with no conditions. The deposit (typically 10%) is payable on the fall of the hammer. You must complete all due diligence before auction day. If bidding doesn't reach the seller's reserve price, the property is "passed in" and the highest bidder gets first right to negotiate.
Deadline Sale
Like private treaty but with a fixed deadline for offers. All offers are submitted by a set date and time, then the seller reviews them simultaneously. Unlike auction, conditions are allowed. The seller can accept any offer, reject all, or continue negotiating. This method is popular in Christchurch for mid-to-upper market properties.
Tender
The most formal method. Offers are submitted in sealed envelopes by a set date. Tenders are typically unconditional, though conditional tenders can be submitted (they're just less competitive). The process is confidential — you don't know what others have offered. Common for lifestyle properties, farms, and commercial real estate.
| Feature | Private Treaty | Auction | Deadline Sale | Tender |
|---|---|---|---|---|
| Conditions allowed | Yes | No | Yes | Usually no |
| Price visible | Often | No (public bids) | Sometimes | No |
| Deposit timing | On going unconditional | On auction day | On going unconditional | On acceptance |
| Deadline | No | Auction day | Yes | Yes |
What Happens in a Multi-Offer Situation
A multi-offer situation occurs when the real estate agent receives more than one offer on a property before the seller has responded to the first. This is common in popular Christchurch suburbs and for well-priced properties.
Here's how the process works:
- The agent notifies all buyers that a multi-offer situation exists. They are legally required to do this under the Real Estate Agents Act 2008.
- Each buyer submits their best offer. You can revise your original offer or let it stand.
- All offers are presented to the seller at the same time. The agent cannot disclose the terms of one offer to another buyer.
- The seller chooses. They can accept one offer, reject all, or counter-offer a single buyer. They don't have to accept the highest price — conditions, settlement date, and buyer reliability all factor in.
How to Strengthen Your Offer in a Multi-Offer
- Lead with your best price — there's usually no second chance to negotiate
- Minimise conditions where you can safely do so (get a building report done beforehand if possible)
- Offer a settlement date that suits the seller — ask the agent what the seller prefers
- Include a larger deposit to show commitment
- Have your bank pre-approval letter ready to attach to the offer
Going Unconditional: What It Means and What Happens Next
Once all your conditions are satisfied, your lawyer sends written confirmation to the seller's lawyer. The agreement is now unconditional, and the purchase is locked in.
Here's what happens next:
- Deposit is paid — typically within 2-3 working days of going unconditional. The standard amount is 10% of the purchase price, held in the real estate agent's trust account until settlement.
- Settlement countdown — both parties work toward the agreed settlement date, usually 30-90 days from the agreement date. Six to eight weeks is common.
- Pre-settlement inspection — you have the right to inspect the property shortly before settlement to confirm it's in the same condition as when you made your offer.
- Settlement day — your solicitor transfers the purchase funds to the seller's solicitor. The title is transferred to your name, and you receive the keys.
If anything goes wrong after going unconditional — for example, the property is damaged before settlement — the 11th Edition S&P Agreement has updated provisions covering insurance risk and your right to cancel in specific circumstances. Your lawyer can advise on your options.
Why Work With Hayden Roulston
Making an offer on a Christchurch property involves more than picking a number. The sale method, your conditions, the settlement date, and how you present your offer all affect whether the seller says yes. Working with an experienced agent who understands the local market means you get guidance on offer strategy tailored to the specific property and situation.
Whether you're a first-time buyer navigating your first conditional offer or an experienced purchaser weighing up an unconditional bid at auction, Hayden Roulston can help you put your best foot forward. Get in touch to start your Christchurch property search.
Frequently Asked Questions
How much deposit do I need to make an offer on a house in NZ?
The standard deposit is 10% of the purchase price, but this is negotiable. Some buyers agree on 5% or a fixed dollar amount. The deposit is paid once the agreement goes unconditional (or immediately at auction) and is held in the agent's trust account until settlement.
Can I back out of a conditional offer?
Yes, if one of your conditions is not satisfied within the specified timeframe. For example, if your bank declines your mortgage and you have a finance condition, you can cancel the agreement and get your deposit back. You must act in good faith — you can't use a condition as an excuse to back out for unrelated reasons.
What's the difference between a deadline sale and an auction?
At auction, all bids are unconditional and the property sells to the highest bidder on the day. A deadline sale collects written offers by a set date, and conditions are allowed. Deadline sales give buyers more flexibility, while auctions give sellers certainty of an unconditional sale.
How long does it take from offer to settlement?
Typically 6-8 weeks from the agreement date, though this is negotiable. The conditions period is usually the first 10-15 working days, followed by the settlement period. Some transactions settle in as little as 2 weeks, while others take 3 months or more.
Should I make an unconditional offer to beat other buyers?
Only if you've already completed all due diligence (building report, LIM, title review) and have confirmed finance with no conditions from your bank. The risk of going unconditional without doing this homework is significant — you could be locked into buying a property with hidden defects, contamination, or title issues.
What happens in a multi-offer situation?
The agent must inform all buyers that multiple offers exist. Each buyer submits their best offer, and all offers are presented to the seller simultaneously. The seller can accept any offer — not necessarily the highest price. Fewer conditions, a suitable settlement date, and a strong deposit can make your offer stand out.