In the dynamic world of Queensland real estate, the phrase “subject to sale” has gained considerable traction. This term refers to a conditional clause in an offer to purchase a property, stipulating that the prospective buyer’s ability to complete the purchase is dependent on them selling their existing property.

While it might appear advantageous to the buyer, offering a safety net to prevent the financial stress of owning two properties simultaneously, it does come with its drawbacks. In essence, the “subject to sale” condition can potentially weaken the buyer’s proposition and diminish their chances of securing the desired property.

The primary reason is the uncertainty it introduces to the transaction. Sellers, naturally, prefer more secure and straightforward deals, especially in a competitive market. An offer “subject to sale” poses a risk that the buyer might not be able to sell their existing property within the stipulated time, leading to a potential withdrawal from the deal.

Furthermore, this condition typically lengthens the settlement period, as the buyer needs time to sell their current property. This delay may not sit well with sellers who are eager to close the deal swiftly and move forward.

Lastly, the “subject to sale” condition can put the buyer at a disadvantage in a multiple offer situation. A competing buyer without such a clause presents a more attractive proposition to the seller.

While the “subject to sale” clause may provide a safety net for buyers, its inherent risks can potentially undermine their chances of securing a property in Queensland’s vibrant real estate market. Buyers should carefully consider their financial circumstances and consult with real estate professionals before opting for this condition in their offer.