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This is a guide as to what most lenders consider acceptable in pre-sales contracts. Vendors should seek their own legal advice as to what terms and conditions are acceptable to them as Vendors. Contracts which do not meet these guidelines will not be acceptable unless agreed to ad hoc by the lender. 

Deposit requirements

  • Minimum deposit paid 10%, by Way of Cash, acceptable Deposit Bond or assignable Bank Guarantee. Deposit to be held by the Vendor's solicitor

  • Minimum rating of Austfsláan issuing bank to be BBB, foreign banks A

  • Contracts backed by Deposit Bonds to form no more than 35% of the aggregate value of contracts required by the lender.

  • All Deposit Bond underwriters to be acceptable to the lender – minimum A –

  • The Deposit Bond issuer and certificate to be acceptable to the lender

  • Deposit Bonds to be assignable to the lender and to any purchaser from the lender in the event of the lender exercising its rights under its security. No side agreements to be entered into between the Vendor or any other party and the Deposit Bond issuers, i.e. Deposit Bond to be unconditional other than that the Vendor is entitled to forfeit the deposit

  • Expiry date of any Deposit Bond or Bank Guarantee to be no less than one month beyond sunset date in pre-sale contract. The Deposit Bond or Bank Guarantee must be extendable or replaced in the event that the sunset date is extended for any reason

  • Cooling off periods must have been waived or expired.


  • Settlement date to be no later than 28 days after issue of individual title. Subject to any statutory requirement establishing the time for settlement

  • Sunset or termination/rescission date to be no in accordance with following. Except where precluded by legislation, this date should be able to be extended for the reasons stated in the building contract, typically strikes, lockouts, inclement weather, delay in supply of building materials etc.

Construction Period period beyond acceptable 'practical completion' date

Up to 18 months
Minimum 6 months
Preferred 9 months

> 18 months to 24 months
Minimum 9 months
Preferred 12 months

> 24 monìhs
Minimum 12 months
Preferred n/a

  • Attached plans are to be identical to the building contracî.

Standard conditions

  • The standard pre~sale contract will be reviewed by the lenders external counsel (all the customer’s expense) to ensure:

  1. It does not contain any unacceptable provisions which could hinder the Developer's/vendor's rights, or give

  2. any right of rescission to the Purchaser, or any other rights of îerminetŕon which are not acceptable to

  3. Any conditions precedent (such as “subject lo fínanee”) must have been satisfied or it is capable of being taken and enforced as security by the lender, or of assignment to a new Vendor by the lender exercising its rights under its security

  4. A certificate of Builders Home Warranty Insurance is attached or, if entitled, exemption is claimed correctly (not applicable to Industrial pre­-sales)

  • If there are any multiple sales to one buyer a maximum of 2 will be îaken as acceptable Sales.

  • For developments consisting of more than 10 units, any one until (eg. a penthouse) may not comprise more than 20% of total qualifying pre-sales.

  • Sales which are not “arms length” are excluded.

  • Purchasers located outside Australia are to form no greater than 25% by number of amount of sales required. Foreign Investment Review Board (FIRB} approval is to be held for all sales to non-residents, or evidence satisfactory to the lender that it is not required.

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