We use cookies to give you the best experience on our website.

Deny Cookies >

Learn more >

Going unconditional.

Michael and Donna reached their goal and had saved enough money for a deposit on their first home.

After a month of searching through real estate agent listings and attending various open homes, they came across a lovely three-bedroom standalone dwelling with a double garage. This was exactly what the couple had been looking for.

The property was going up for auction in two days and Michael and Donna did not want to miss this opportunity. They arranged for a builder to complete an inspection, checked the Council LIM report themselves and already had a letter of offer from their bank.

Michael and Donna went to the auction and were successful. They forwarded a copy of the signed Agreement for Sale and Purchase to their solicitor with a comment explaining that although the purchase process was rushed they were satisfied with their investigations. Following this, Michael and Donna emailed a copy of the letter of offer to their solicitor and advised that they would follow-up with the bank to check when their loan documents would be available for signing.

A few days later, as he was reading through the paperwork for their new property, Michael suddenly realised that the letter of offer from the bank was not unconditional. The bank required certain conditions to be met in order for the finance to be approved. One of these conditions was for Michael and Donna to obtain a valuation of the property.

Michael panicked and quickly began calling registered valuers in the area to arrange for a valuation to be carried out on the property. Luckily a valuer was available the next day to complete the valuation. A copy of the valuation was sent to the bank and the bank confirmed they were satisfied and loan documents would be issued to his solicitor shortly.


It is essential when obtaining bank lending that the letter of offer is unconditional and that it is also relevant to the particular property you want to purchase. You should have the unconditional letter of offer in hand before bidding at an auction or satisfying a finance condition.

For further Property Law advice, get in touch with Nick and the Property Law team.
nick@davenportslaw.co.nz | 09 883 4420


Meet our PeopleRequest an Appointment