If you are buying or selling property in Queensland, you will often come across “special conditions” or “special clauses” in the contract.
While the standard Real Estate Institute of Queensland (REIQ) Contract of Sale sets out the basic legal framework, special clauses are used to add additional flexibility and protection for both parties, depending on the circumstances of the transaction.
Below are the 10 most common special clauses used in Queensland property transactions.
1. Rent-Back Clause (Seller Staying After Settlement)
A rent-back clause applies when the seller remains in the property after settlement, even though ownership has transferred to the buyer. In this arrangement, the seller becomes a tenant for an agreed period.
This is commonly used when the seller needs additional time to relocate or is waiting for another property to settle. The clause sets out rent, duration, utilities, insurance, and vacate conditions.
2. Subject to Completion of Sale of Buyer’s Property
This clause protects a buyer who must sell their existing property before completing the purchase. Without it, the buyer may be legally required to proceed even if their current property does not sell.
It outlines the buyer’s property, timing requirements, and what happens if competing offers are received during the period. It is often only accepted when the buyer’s property is already under contract.
3. Subject to Registration of Title in Seller’s Name (Estate / Transmission Clause)
This clause applies where the seller is not yet the registered owner due to probate or transmission processes.
Settlement occurs after registration is completed and the seller becomes the legal owner. If registration is not completed within an agreed timeframe, the buyer may terminate and receive a full refund.
4. Subject to Foreign Investment Review Board (FIRB) Approval
This clause applies where the buyer is a foreign person or entity requiring FIRB approval before purchasing property.
The buyer must apply promptly and use best efforts to obtain approval. If approval is not granted by the specified date, the contract will generally terminate and deposits are refunded in full.
5. Acceptance of Offer Deadline
This clause sets a strict timeframe for the seller to accept a buyer’s offer. If the deadline is not met, the offer automatically lapses.
It is used to create urgency, manage negotiations, and prevent delays in decision-making.
6. Early Access Before Settlement
This clause allows buyers to access the property before settlement for preparation purposes such as measuring or planning works.
It must clearly define insurance, liability, permitted use, and responsibility for damage, as ownership has not yet transferred.
7. Subject to City Council Approval (Development Clause)
This clause makes the contract conditional on receiving council approval for a proposed use or development of the property.
It may include subdivision, demolition, redevelopment, or zoning changes. If approval is not granted within the timeframe, the buyer may terminate.
8. Extended Due Diligence (incl. Council Searches and Body Corporate Records)
This clause allows the buyer to conduct a broader investigation of the property before proceeding unconditionally.
It typically includes council information such as zoning, flood overlays, building approvals, and compliance history, as well as body corporate records where applicable, including financial statements, by-laws, insurance, and meeting minutes.
If the buyer is not satisfied with the findings within the agreed timeframe, they may terminate the contract.
9. Subject to Simultaneous Completion of Another Contract by the Buyer
This clause makes the contract conditional on the buyer completing another purchase at the same time, often used for neighbouring land or staged acquisitions.
The buyer must take reasonable steps to ensure both contracts settle simultaneously. The buyer may also waive this condition in writing before settlement if desired.
10. Pet Approval Clause (Body Corporate Properties)
In strata properties, pets are governed by body corporate by-laws. This clause makes the contract conditional on whether the buyer is allowed to keep a pet.
If approval is refused, the buyer may have the right to terminate the contract.
Final Thoughts
Special clauses are a normal and essential part of property transactions in Queensland.
From rent-back arrangements and FIRB approval to simultaneous sales, each clause shifts risk differently between buyer and seller.
Understanding how these clauses work is critical to making informed property decisions and avoiding costly mistakes.