'Subject to finance' and 'subject to building & pest' explained
4 min read · Updated June 2026
Signing a contract is the part that makes most buyers nervous, and fair enough. Standard conditions exist to take some of that fear away. They give you time to check the big things before you are fully locked in. Here is what the common ones mean in plain English.
Subject to finance
This makes the contract conditional on your home loan getting formal, unconditional approval by a set date. If your finance does not come through in time, it generally gives you a way out.
The catch is the date and the exact wording, which vary between contracts. Pre-approval is not the same as unconditional approval, so give your lender or broker enough runway. Have your solicitor confirm your rights before you sign.
Subject to building and pest
This lets you get a building and pest inspection and read it before the contract is binding. A typical inspection costs a few hundred dollars and is money well spent.
If the report turns up something serious, like major structural issues or termites, it can be a basis to renegotiate the price or walk away within the condition period.
Subject to personal viewing
Buying without seeing the place in person, for example interstate? This condition lets you inspect before you are committed. It is worth raising with your solicitor when you draft your offer.
Why the dates matter most
Every condition has a deadline. Miss it and you can lose the protection it was meant to give you. That is the single most common way buyers get caught out.
Keep your finance, building and pest, and settlement dates somewhere you will see them, and tick each one off as it is satisfied. BuyerPropIQ tracks these for you and reminds you before each one is due.
Frequently asked
What does 'subject to finance' mean?＋
It makes the contract conditional on your home loan getting unconditional approval by a set date, which gives you a way out if finance is not approved in time. Confirm the exact terms and dates with your solicitor.
What does 'subject to building and pest' mean?＋
It lets you get a building and pest inspection and review it before the contract is binding, so serious defects can be a basis to renegotiate or withdraw within the condition period.
What happens if I miss a condition date?＋
You can lose the protection that condition gave you, which is why tracking each deadline matters. Always confirm the dates and your options with your solicitor.
Educational information only, not legal, credit or financial advice. Confirm specifics with your solicitor or mortgage broker.