Buying a House Subject to Sale of Your House | Expert Legal Tips

Upgrading your home often means selling your current place before buying the next one. But what if your sale takes longer than expected, or you don’t get the price you need? That’s where making your new purchase “subject to the sale of your own home” comes in – it gives you some breathing room, though it’s not without risks.

This guide explains how these arrangements work in Queensland, what can go wrong, and how to time everything right. A good conveyancer in Cairns can help you manage both deals without the stress of being caught in the middle.

A Quick Look

• “Subject to sale” means your purchase depends on successfully selling your current home within a set time.
• Sellers sometimes accept it, especially in slower markets, but they won’t wait forever.
• Selling first is safer, but this option works when timing feels tight.
• Coordinating two contracts needs careful planning from your buyer’s conveyancer.
• Cairns market ups and downs make local experience essential.

How “Subject to Sale” Works in Practice

The idea is simple: you make an offer on your new home, but include a condition that says the deal only goes ahead if you sell your existing property by a certain date – usually 8-12 weeks from signing the contract.

If you sell in time, great – both transactions move forward. If not, you can walk away from the purchase without losing your deposit, as long as you’ve made genuine efforts to sell (like properly listing the property and accepting reasonable offers).

Sellers like this arrangement because it gives them a committed buyer while your house is on the market. But they need to know you’ll actually follow through.

Why Sellers Might Say Yes (or No)

In a buyer’s market or when properties have been on the market for a while, sellers are more open to these conditions. They figure a bird in the hand is worth two in the bush.

But in hot markets, or if they have multiple offers, they’ll usually want unconditional buyers who don’t need to sell first. Your solicitor in Cairns can help you gauge when to push for this clause and how to word it so it’s fair to both sides.

The Downsides for Buyers

This approach isn’t risk-free. Your sale needs to settle before your purchase, which puts pressure on you. If your buyer pulls out or delays, your new home deal could collapse at the last minute.

You might also end up accepting a lower offer on your current home just to meet the deadline. And not every seller will entertain the condition, so you could miss out on properties you love.

That’s why many experienced buyers prefer to sell first, then buy with fresh funds.

The Smart Alternative: Sell First, Buy Second

Most conveyancers for sellers recommend this sequence:

1. List your current home and line up a buyer
2. Once your sale is firm, start seriously looking for your next property
3. Exchange contracts on the purchase once your sale finance is approved
4. Time both settlements for the same day

Your seller’s conveyancer can build flexibility into your sale contract to match your purchase timeline.

Coordinating Two Settlements at Once

The pro move is simultaneous settlement – your sale completes in the morning, and the proceeds immediately fund your new purchase in the afternoon. Both property title transfers happen on the same day.

It sounds tricky, but with good coordination, it’s routine. Your conveyancer talks to both settlement agents, tracks deadlines across two contracts, and makes sure funds flow smoothly.

A Typical Timeline That Works

Here’s how it often plays out:

• Week 1: List your current home
• Week 3: Accept a solid offer
• Week 4: Find your new property and go subject-to-finance
• Week 6: Both contracts become unconditional
• Week 9: Both settle (same day)

Why Buying in Cairns Can Be a Bit Trickier

The tropical climate and local market conditions can make things a little more complicated:

• The wet season can slow down inspections, valuations, and even access to the property
• Holiday periods can delay responses and stretch out decision-making
• Flood risk makes some lenders more cautious or slower to approve finance
• Fewer settlement agents in the region means you’ll need to book ahead to avoid delays

A conveyancer who knows the Cairns market will plan for these issues and build in the right buffers to keep your purchase moving smoothly.

When “Subject to Sale” Actually Makes Sense

Use this strategy when your home is realistically sale-ready and the market feels steady. If you’ve got equity built up or multiple offers on your place, sellers are more comfortable.

Skip it if your property needs work or you’re not ready to move quickly.

Getting the Right Conditions in Place

When negotiating your contract, it’s important to set clear terms. Ask your conveyancer to include:

• A reasonable timeframe (8 weeks is common)
• Clear rules about what “genuine efforts” means
• Flexibility if you get competing offers
• Deposit protection if you meet the terms

What About Bridging Finance?

If you’re buying a new place before your current one sells, some people use short-term loans (called bridging finance) to cover the gap. It can work, but interest rates are usually high, and if your sale falls through, things can get risky.

That’s why many buyers prefer coordinated settlements. This means timing your sale and purchase to settle on the same day, so the funds from your sale go straight into your new property. It’s cleaner, less stressful, and helps avoid the extra cost of a bridging loan.

Keeping Everyone in the Loop

Clear communication can make all the difference during a property transaction. Here’s how to stay on top of it:

• Update the purchase seller weekly on your sale progress
• Share agent feedback openly
• Confirm settlement details early
• Flag potential delays immediately

What If the Sale Doesn’t Happen?

Life intervenes sometimes. If you can’t sell despite good efforts, show proof like listing agreements and buyer communications, ask for a short extension, and be ready to walk away if needed. Most sellers would rather get their deposit back than start over.

Don’t Forget the Financial Side

Before you commit, talk to your accountant about timing your sale for capital gains tax benefits, understanding stamp duty on your new purchase, and checking if first home concessions apply. These details can save you thousands.

Speak To Cairns Conveyancing Solicitors for Help

Buying subject to selling another property works best when you plan carefully and time it right. Selling first eliminates most headaches, but flexible strategies help in Cairns’ unique market.

Cairns Conveyancing Solicitors coordinate property chains every day. We sync your contracts, watch the deadlines, and handle the property title transfer so you get your keys without drama.

Ready to make your next move? Get in touch today.

Disclaimer: This blog is intended for informational purposes only and does not constitute legal advice. For guidance tailored to your specific circumstances, please consult a qualified legal representative.