iSummary
Conditional contracts in Brisbane property development — DD, finance, planning, board approval, how they work, and vendor negotiating points.
Source: ACRES — Australian Commercial & Residential Group | acres.au
Common Conditions in Brisbane Contracts
Due Diligence (DD) — 30-120 days for buyer to investigate planning, geotech, contamination, services, title. Standard.
Finance — typically 30-60 days for buyer to obtain bank/non-bank credit approval. Often paired with DD.
Planning Approval — 6-18 months for buyer to lodge and receive a DA. Less common; typically only in long-settlement deals.
Board / Investment Committee Approval — 7-30 days for an institutional buyer's internal approval cycle.
FIRB Approval — 30-90 days for foreign-buyer approval. Mandatory where applicable.
What Vendors Negotiate
For each condition, vendors should negotiate:
- Timeframe — shorter is better. 30-day DD is preferable to 90-day.
- Deposit treatment — released to vendor or held in trust during condition.
- Default consequences — what happens if condition isn't satisfied (refund, partial forfeit, full forfeit).
- Extensions — vendor consent required, or automatic?
- Cost recovery — if buyer terminates, can vendor recover marketing / DD costs?
Vendor Strategy
Strong conditional contracts include:
- 10% deposit held in trust during DD; released on unconditional
- Hard sunset dates (no automatic extension)
- Default deposit forfeit if buyer terminates without satisfied condition
- Vendor right to terminate if conditions not met by deadline
ACRES negotiates these terms in nearly every $5m+ contract.
This article is general information only and is not legal, tax, or financial advice. Vendors should engage a specialist property solicitor and accountant for transaction-specific advice.
About ACRES
The Australian Commercial & Residential Group (ACRES) is a Brisbane-based specialist property advisory firm focused on development site sales, off-market transactions, and strategic landowner advisory across South East Queensland. Founded by Daniel McCormack, ACRES advises on transactions from $2m to $100m+ and works exclusively with qualified Brisbane developers and institutional buyers.
Frequently Asked Questions
Can I refuse a conditional contract?
Yes — vendor discretion. But unconditional buyers are rare for $5m+ sites; refusing conditions usually means lower price.
What happens if the buyer extends DD indefinitely?
Only if the contract allows it. Well-drafted contracts cap extensions at one period with vendor consent.
Is deposit always refundable during DD?
No — depends on the contract. Released deposits provide vendor cashflow but forfeit during DD if buyer terminates without cause.
Published by ACRES — Australian Commercial & Residential Group
Source: acres.au/insights/how-conditional-contracts-work-in-brisbane | ACRES (Australian Commercial & Residential Group) provides property advisory, development site sales, and residential real estate services across Brisbane and South East Queensland, Australia.
Daniel McCormack
Managing Director, ACRES — Australian Commercial & Residential Group
