Beware the 'Special Condition': How Small Print Can Cost You Big Money
/Special conditions in a property contract are often overlooked—but they can override standard protections and leave buyers or sellers exposed.
David Dawn, Licensed Conveyancer at Victorian Property Settlements, explains why special conditions must never be assumed to be standard, and how a few words buried in the contract can shift thousands of dollars' worth of risk onto you.
What Is a Special Condition?
A special condition is an additional term written into the contract of sale—often by the vendor’s solicitor, real estate agent, or developer. These clauses sit outside the General Conditions in the standard REIV contract and can relate to anything from access rights to penalty fees, cleaning obligations, or GST.
In Victoria, special conditions prevail over General Conditions if they conflict.
Why Are They So Risky?
Because they can:
Transfer legal or financial risk to the purchaser
Limit your ability to terminate the contract
Impose unfair penalties or unreasonable obligations
Appear innocuous but carry hidden consequences
Some are written in plain English. Others are buried in legal jargon. All must be read with care.
Real Examples We See All the Time
1. Vendor Can Rescind If Finance Not Approved Fast Enough
A condition may say the vendor can walk away if you have not given notice of finance approval by day 14—even if your bank is ready by day 15. No grace period. No refund of deposit.
2. Early Access Without Vendor Liability
Buyers may request early access to measure or store items. But if a special condition says the vendor accepts “no responsibility for damage or loss,” you could bear full liability before you even own the home.
3. Sale Subject to a Land Tax Adjustment
Under current Victorian law, land tax should not be adjusted unless certain exemptions apply. If a special condition overrides that, the purchaser may end up paying thousands in vendor tax liability.
4. No Compensation for Building Defects
Some vendors include clauses that say the purchaser accepts the property as is, and cannot claim compensation for defects, even if they were undisclosed or unsafe.
5. Fixed Penalty Amounts for Delay
We often see clauses that impose a fixed penalty—say $500 per day—if the purchaser fails to settle on time. This is on top of standard penalty interest and can quickly become expensive.
How to Protect Yourself
✅ Never sign a contract before a professional review
✅ Ask your conveyancer to explain each special condition in plain English
✅ Push back on any clause that removes your rights under standard law
✅ If buying before auction, negotiate changes or deletions
✅ If buying at auction, understand that all special conditions apply as-is
What About Selling?
Vendors often believe special conditions are only for buyers—but your agent or solicitor may have inserted one that harms you.
Example: Some “subject to finance” conditions allow the buyer to walk away at the last minute with no evidence of genuine effort to obtain finance. That leaves you with an empty calendar and no deposit.
A tailored vendor-side condition can require proof of finance efforts or set consequences for unjustified cancellation.
Conclusion
A single paragraph can override your entire contract.
Special conditions are not boilerplate—they are powerful tools that must be checked, challenged, or removed if they do not serve your interests.
At Victorian Property Settlements, we translate every clause into practical risk terms and help you negotiate before you commit.