The Three Conditions That Appear Most Often
These three conditions appear on the front page of the standard agreement and give a buyer a structured way to walk away if something serious turns up. A finance clause protects you if your bank doesn't confirm formal approval by the deadline. As of the 2026 TLANZ/REINZ forms update, cancelling on finance grounds requires a reasonable explanation and evidence of genuine steps taken to obtain finance — simply saying "finance wasn't satisfactory" is no longer enough on its own.
A building report clause lets you get a professional inspection and cancel if it's not satisfactory to you, assessed objectively rather than on a whim, usually by the 10th working day. A LIM clause lets you review the council's Land Information Memorandum, which reveals Code Compliance Certificates for the dwelling, garage, alterations, and any fireplace or pool, plus notations about natural hazards, historical sites, or road widening.
Finance Clause
Building Report Clause
LIM Clause
Since 2026, cancelling on the finance condition requires a reasonable explanation and evidence of the steps you took — not just a claim that finance wasn't satisfactory.
What to Do Before Each Deadline
Don't let these dates slip past you.
Apply for finance immediately
Give your bank or broker enough time to assess and confirm formal approval before the deadline.
Book your building inspector early
Good inspectors get booked up — arrange this as soon as the agreement is signed.
Request the LIM promptly
Councils can take one to two weeks to issue a LIM, so order it straight away.
If unconsented work turns up in the LIM
You can generally require the vendor to remedy it or withdraw from the agreement.
Quick Summary
- Finance, building report and LIM are the three most common purchaser conditions.
- Finance cancellations now require reasonable explanation and evidence of steps taken.
- LIM reports can reveal unconsented work or hazard notations — read them carefully.