What it does
The purchase is conditional on the buyer selling an existing home, often by a stated date and sometimes with an unconditional sale or other defined milestone. The exact wording controls the legal effect.
Why a buyer may request it
It can reduce the risk of needing to settle the new purchase while the expected sale proceeds are unavailable. It does not guarantee the existing property will sell or that the buyer will be able to satisfy every other condition.
Why a vendor may resist it
The vendor has less certainty and may be waiting while the buyer’s sale progresses. The agreement may include notice, right-to-sell, or other mechanisms. Those are contract questions for the lawyer, not a checklist decision.
Questions before signing
What exactly must happen, by what date, what evidence is required, what notice is required, can the vendor keep marketing or accept another offer, and what happens if the buyer’s home sells at a lower price or does not sell?
Costs and warning signs
Allow for legal review, reports, marketing and sale costs on the existing home, moving or storage, and possible overlapping accommodation or lending costs. Watch for a vague sale event, unrealistic deadline, unclear notice process, vendor rights to keep marketing, or a funding plan that depends on a sale price that has not been achieved.
Worked example
Mere has a conditional offer on her current home but needs its settlement proceeds for the next purchase. The new agreement is not simply ‘subject to sale’; her lawyer checks the defined event, dates, notice rules, and the risk if the first sale changes.
Evidence categories to organise
- Existing home sale status
- Required event and deadline
- Notice and evidence rules
- Vendor’s rights if another offer appears
- Marketing and sale costs
- Funding if the sale price changes
- Lawyer review before signing
This guide is general information only. MoreGage does not provide regulated financial advice, a lending assessment, approval, or an offer.