Property Investment
Don’t use Opes if …
In this article you’ll learn why Opes Partners might not be the right fit for some people and why.
Property Investment
5 min read
What if you could get to the point where you have first dibs on a property.
The seller can’t sell the property to someone else, without you getting the chance to buy it first.
This is called the Property Power Position.
In this article, you’ll learn what the Property Power Position is, how it works, and when you can (and can’t use it).
What is the Property Power Position?
It’s when you secure the first right to buy a property and no other buyer can pip you at the post.
You might think – “How do I get into the Property Power Position?”
Well, first you sign the contract (the sale and purchase agreement).
Yes, before you do anything else, you sign the contract.
But, it can’t be any old contract. It must be ‘conditional’. That means you can pull out of the contract but the seller can’t (usually for 10 days).
Signing a contract can feel nerve-wracking, especially for first-time buyers. After all, you’re signing up to buy a property worth $600k+.
I understand why investors feel nervous about this. I remember signing my first contract: my hand was shaking. But there are reasons why you do this.
What are the pros of the Property Power Position?
Buying a property requires a lot of steps ... and these steps cost money.
The last thing investors want is to spend thousands on doing research on a property, only for someone else to buy the property first.
But if you don’t have a contract with the seller … that can often happen. That’s why serious investors get aproperty under contract first.
Signing the contract often gives you 10 days to do your checks on the property before you have to make a final decision.
At the end of that time frame, you can either:
#1 – Ask for an extension. If you need more time, you can extend the contract. Just keep in mind the seller has to agree.
#2 – Cancel the contract. If it’s not the right property you can cancel the contract and walk away.
#3 – Buy the property. You think, “This is the property for me” and go unconditional.
But here’s the key: You're the one in control. You can walk away during those 10 days; the seller can’t.
Of course, you need to include the right clauses to protect yourself, and we’ll cover those next.
What clauses do I need in my contract to get into the Property Power Position?
When I first started Opes Partners I met a lawyer to figure out how to best protect buyers.
He recommended four key conditions, which we’ve used in every contract since:
#1 - Lawyer’s approval
You take the contract to your lawyer, who has two weeks to review it line by line. If they don’t approve you can cancel the contract.
#2 - Finance approval clause
If you can’t get the money from the bank, you can back out and walk away.
#3 - Due Diligence clause
Due diligence is just a fancy word for research. Basically, it means you can do whatever checks you want on that property.
If something doesn’t sit right, you back out using the Due Diligence clause. No questions asked.
#4 - Right to cancel clause
This one gives you the ability to just say, “You know what? That’s actually not the right property for me. I’ve changed my mind (for whatever reason),” and you cancel it.
This is very similar to the due diligence clause. They’re the same thing.
But, I like to put the right to cancel clause into contracts so investors feel more comfortable.
Not everyone knows what a due diligence clause is, but a right to cancel clause is self-explanatory. It means: “I can walk away if I want to.”
What happens after you sign your contract?
If the seller accepts your offer, they’ll sign the contract too.
Once you’ve completed due diligence and are happy with the investment, you must tell your lawyer to confirm the contract.
We call this “Confirming the Commitment”.
At this point, you pay a 10% deposit, usually within 3–5 days. But this deposit doesn’t go directly to the seller – it’s held in trust by their lawyer, so they can’t access or use it.
What are the risks of getting into the Property Power Position?
While signing a conditional contract isn’t as risky as it might sound, you should still have a genuine intent to buy the property. Aka, you don’t want to be signing contracts willy-nilly.
Because you’re still going to be spending money, and it’s still a waste of money if you decide it’s not for you.
A Detail Dive (due diligence) can cost you up to $4,000 if you go ahead with the property.
If you cancel it after only sending your contract to your lawyer, you’re still going to spend about $500 getting them to check the contract.
What if you accidentally end up buying the property?
Investors often worry about “accidentally” committing to a property before they’re ready. However, understanding how conditional contracts work can help you feel more comfortable.
By signing a conditional contract, you cannot accidentally buy a property.
I joke with clients that the only way to accidentally buy a property is to sneeze at an auction and put your hand up as a bid.
But signing a conditional contract isn’t like that. It puts you in the driver’s seat, giving you control over the outcome.
You must actively work through your conditions with your lawyer. And you have to confirm that you’ve met those conditions before the contract becomes unconditional.
Getting into the Property Power Position isn’t just about securing a deal — it’s about protecting yourself.
With the right clauses in place you can confidently make offers, knowing you’re in control of the process.
Andrew Nicol
Managing Director, 20+ Years' Experience Investing In Property, Author & Host
Andrew Nicol, Managing Director at Opes Partners, is a seasoned financial adviser and property investment expert with 20+ years of experience. With 40 investment properties, he hosts the Property Academy Podcast, co-authored 'Wealth Plan' with Ed Mcknight, and has helped 1,894 Kiwis achieve financial security through property investment.
