Key takeaways
A contract of sale sets out the agreed price, deposit, settlement date, title details, inclusions, exclusions and special conditions.
Cooling-off periods vary by state and territory, and generally do not apply to auction purchases.
Before signing, buyers should check special conditions, disclosure documents, title details, settlement timing and finance clauses.
Auction buyers should review the contract, complete inspections and understand their borrowing position before bidding.
An Aussie Broker can help you understand your finance position before you commit. When you reach the contract review stage, our Aussie Contract Analyser can help identify key terms, special conditions and possible flags before you speak with your conveyancer.
A contract of sale is the legal document that sets out the terms of a property purchase in Australia. It covers key details such as the price, deposit, settlement date, title information, inclusions, exclusions and any special conditions.
Before signing, buyers should understand exactly what they are agreeing to. Once a contract becomes binding, changing its terms or ending the agreement can be difficult and may come with financial or legal consequences.
This guide explains what a contract of sale includes, when it becomes binding, how cooling-off periods work and what to check before signing. It also outlines key differences between private treaty and auction contracts, where cooling-off rights do not apply, and buyers generally need to be finance-ready before bidding.
What does a contract of sale include?
A contract of sale sets out the legal and practical terms of a property purchase. The format varies by state and territory, but most residential contracts cover the same core details: the buyer, seller, property, price, deposit, settlement date and any conditions that must be met before settlement.
Buyer and seller details
The contract names the buyer (or the purchaser) and the seller (or the vendor). These details must be correct because they identify who is legally responsible for completing the sale.
Property and title details
The contract should identify the exact property being sold. This includes the property address, legal description, title details and plan references, such as the Lot/DP number or Certificate of Title. These details help confirm what land, dwelling or property rights are being transferred.
Purchase price, deposit and settlement date
The contract records the agreed purchase price, deposit amount and settlement date.
Deposit rules and common practices vary. For example, in NSW, a 10% deposit is common, although a lower amount may be negotiated between the buyer and seller.
The settlement date also varies by state, contract type and negotiation. It is the date on which ownership is legally transferred, the balance of the purchase price is paid, and the buyer usually becomes entitled to the property.
For example, settlement in the Northern Territory is between 30 and 90 days. In South Australia, settlement is described as the legal process of transferring property from the seller to the buyer.
Standard and special conditions
Standard conditions are the default terms included in the contract. Special conditions are additional terms added to reflect the negotiated deal. Common special conditions may include:
Subject to finance
Subject to building and pest inspection
Subject to the sale of another property
Specific settlement timing
Agreed repairs or inclusions
A finance clause, for example, may allow a buyer to end the contract if formal finance approval is declined. This depends on the wording, deadlines and state-based rules, so a conveyancer or solicitor should review it before signing.
You might also be interested in: Property inspections 101: What every buyer must check
Inclusions, exclusions and disclosure documents
The contract should list what is included in the sale, such as fixtures, fittings, appliances, blinds, air conditioning units or garden sheds. It should also note any exclusions. Disclosure documents are also important and vary by state. Examples include a Section 32 Vendor’s Statement in Victoria, Form 1 in South Australia and seller disclosure documents in Queensland.
Before signing, have a licensed conveyancer or solicitor review the contract. They can explain your obligations, identify risks and check whether the terms match what you agreed with the seller.
When is a contract of sale signed?
A contract of sale is signed when the buyer and seller are ready to make the property purchase legally binding. The timing and risk depend on the sale method, with different rules for private treaty and auction purchases.
In a private treaty sale, the seller’s solicitor or conveyancer prepares the contract before the property is listed or before offers are formally accepted.
As a buyer, you should review the contract before signing or making an unconditional offer. This is when you check the purchase price, deposit, settlement date, inclusions, exclusions and any special conditions, such as finance approval or building and pest inspection clauses.
Once the offer is accepted, both parties sign the contract at the exchange. Cooling-off rules vary by state and territory. For example, buyers in NSW have a five-business-day cooling-off period for residential property purchases.
In contrast, buyers in Victoria have three clear business days. Exceptions apply, so check the rules in your state before relying on a cooling-off period.
For an auction, the contract is prepared before auction day and should be reviewed before you bid.
The winning bidder is required to sign the contract immediately after the auction and pay the deposit. This can carry more risk because auction purchases generally do not include a cooling-off period.
Before bidding, buyers should complete their legal review, finance checks and building and pest inspections. This helps reduce the risk of signing a contract without understanding the property, the terms or your borrowing position.
You might also be interested in: Buying at auction vs private treaty
What does the exchange of contracts mean?
Exchange of contracts is the point when the buyer and seller have both signed the contract, and the agreement becomes binding.
The process varies by state and territory. In NSW and Victoria, exchange commonly involves two signed copies of the contract. In Queensland, a single contract document is often used.
Because property law is state-based, speak with a licensed conveyancer or solicitor before signing. They can explain how exchange works in your state, whether cooling-off rights apply and what your obligations are once the contract becomes binding.
What is the cooling-off period?
A cooling-off period is a short window after signing or exchanging a contract of sale, during which a buyer may withdraw from the purchase.
It applies to private treaty sales, not auctions. The rules, timeframes and withdrawal costs vary by state and territory, so check the current requirements with your conveyancer or solicitor before signing.
State | Cooling-off period | Penalty for withdrawal |
|---|---|---|
NSW | ||
VIC | ||
QLD | ||
SA | ||
WA | ||
ACT | ||
TAS | No automatic statutory cooling-off period | Not applicable, unless included in the contract |
NT |
Cooling-off periods vary across Australia. For example, NSW gives buyers five business days after exchange. In comparison, Victoria allows three clear business days for private residential sales. Queensland gives buyers five business days from the date of receipt of the signed contract.
Tasmania does not have an automatic statutory cooling-off period. The standard contract used by the Real Estate Institute of Tasmania and Law Society of Tasmania includes an optional cooling-off clause, but buyers need to choose it for it to apply.
In the Northern Territory, the cooling-off period applies only where the buyer’s conveyancer was not involved in exchanging signed contracts. If conveyancers exchange the contracts, cooling-off rights may not apply. Buyers should get local legal advice before relying on this right.
Auction purchases are different. Cooling-off rights do not apply when you buy at auction, so you should complete finance checks, contract review and building and pest inspections before bidding.
A cooling-off period is also not a complete safety net. It may not protect you from every issue found after signing. For example, a structural defect discovered after the cooling-off period has expired may not entitle you to terminate the contract. In some cases, a cooling-off period may also be waived, reduced or extended by written agreement.
Before relying on a cooling-off period, get legal advice. A licensed conveyancer or solicitor can confirm the rules in your state and explain the cost and process for withdrawing.
What should you check before signing a contract of sale?
Before signing a contract of sale, check that the document reflects what you agreed with the seller and that you understand the risks. Once contracts are exchanged, the agreement may become legally binding, so get the details checked before you commit. Use this checklist as a starting point before speaking with your conveyancer or solicitor.
☑ Check the special conditions.
Special conditions can change how the standard contract works. They may protect you, add obligations or limit your options if something goes wrong. Check for:
Vendor-added conditions: Look for terms that favour the seller, such as extended settlement, early access or limits on your ability to raise issues later.
Finance clauses: If your offer is subject to finance, confirm the clause covers the lender, approval deadline and what happens if finance is declined or delayed.
Building and pest clauses: Ensure you have enough time to complete inspections and address any issues.
Sunset clauses: Common in off-the-plan contracts, they may allow a party to terminate the contract if milestones are not met by a set date.
Special conditions only help if they are clearly worded. Ask your conveyancer or solicitor to explain each condition before signing.
☑ Check the inclusions and exclusions.
Do not assume everything you saw at the inspection is included in the sale. The contract should clearly list what stays with the property and what is excluded.
Check items such as dishwashers, light fittings, blinds and curtains, air conditioning units, garden sheds, security systems, pool equipment and fixed appliances.
If an item matters to you, make sure it is written into the contract. Verbal agreements can be difficult to rely on in the event of a dispute.
☑ Check the settlement date.
The settlement date is when the purchase is completed, funds are transferred, and ownership moves to you. Before signing, check whether the timeframe is realistic. Ask:
Is there enough time to get formal finance approval?
Does the date work with your lease or moving plans?
Do you need time to sell another property?
Is the seller asking for a shorter or longer settlement than usual?
A settlement date can create pressure if your finance, valuation or paperwork is not ready in time.
☑ Check the title and property details.
The contract should accurately describe the property being sold. This includes the address, title details, lot and plan numbers, and any other legal identifiers. Your conveyancer or solicitor should check for easements, covenants, caveats, mortgages or other encumbrances, land use restrictions and strata or community title obligations, where relevant.
Remember, a title search can help identify registered interests or restrictions that may affect how you use the property.
☑ Check the vendor disclosure documents.
Vendor disclosure rules vary by state and territory.
Depending on where you are buying, the seller may need to provide documents such as a Section 32 Vendor’s Statement in Victoria or the Form 1 in South Australia. Review these documents for known defects, council orders, zoning or planning issues, building approvals, strata records, property-related disputes and notices from government or local authorities.
Missing or incomplete disclosure documents can create risk. Ask your conveyancer or solicitor what must be provided in your state before you sign.
Get help before you commit
If you have received a contract and are not sure where to start, Aussie Contract Analyser can help identify key terms, special conditions and possible flags before you speak with your conveyancer. It can also help you prepare questions and identify areas that may need closer review.
A contract review tool is not a substitute for legal advice. Before signing, have a licensed conveyancer or solicitor review the contract and explain what it means for your purchase.
What are the common special conditions, and what do they mean?
Special conditions are extra clauses added to a contract of sale to reflect what the buyer and seller have agreed. They can protect you in specific situations, but only when they are clear, complete and properly drafted.
Subject to finance
A subject to finance clause may protect you if your home loan is not formally approved by the agreed deadline. It usually means the purchase depends on receiving lender approval for financing. A finance clause should clearly state the lender (if applicable), the loan amount, the loan type, the approval deadline and what happens if finance is declined or delayed.
Do not assume you can automatically exit the contract if approval is delayed. If the deadline is approaching, you may need to request an extension or follow the contract withdrawal process. Ask your conveyancer or solicitor to check the wording before you sign.
Subject to building and pest inspection
A subject to building and pest inspection clause may give you options if an inspection finds serious issues, such as structural defects, termite damage or major moisture problems. This should set out when the inspection must be completed, who may carry out the inspection, what types of issues may trigger a right to withdraw or renegotiate, and how and when you must notify the seller.
Avoid relying on vague wording. Terms such as “satisfactory” can create uncertainty if the buyer and seller disagree.
Subject to the sale of the existing property
A subject-to-sale clause may allow you to exit the contract if you cannot sell your current property within a set timeframe. This can help if you need the proceeds from a sale to complete your next purchase. However, sellers may reject this condition, negotiate a shorter timeframe or ask for evidence that your property is already on the market.
Extended or delayed settlement
A longer settlement period may suit buyers who need more time for finance, paperwork, lease timing or the sale of another property.
Before agreeing, check whether the timeframe works for your lender, conveyancer and moving plans. A delayed settlement can help in some situations, but it may also create additional risk if market conditions, financing approval, or personal circumstances change.
Remember, special conditions are only as strong as their wording. A poorly drafted finance clause, for example, may not protect you if your lender’s decision is delayed. Have a licensed conveyancer or solicitor review all special conditions before you sign.
What happens after the contract of sale is signed?
After the contract of sale is signed and exchanged, the purchase moves toward settlement.
This is when the legal, finance and administrative steps are completed so ownership can transfer from the seller to the buyer.
1. Pay the deposit.
The deposit is paid at the exchange. In many contracts, this is 10% of the purchase price. However, a lower amount may be negotiated and written into the contract. The deposit is held in a trust account by the real estate agent, solicitor or conveyancer until settlement. Check the contract for the amount due, payment deadline and where the deposit will be held.
2. Meet the contract conditions.
If the contract includes special conditions, they must be met by the agreed deadlines. Common examples include finance approval, building and pest inspection, or the sale of an existing property. Once all conditions are satisfied, the contract is generally considered unconditional.
At that point, withdrawing may be difficult and could have financial or legal consequences.
3. Complete the pre-settlement inspection.
Before settlement, buyers complete a final inspection of the property. This often happens 1–2 days before settlement.
The inspection is intended to help confirm the property is in the same condition as when you signed the contract, allowing for fair wear and tear. Check that agreed inclusions remain, that relevant appliances are working, and that no new damage has appeared.
4. Settle the property.
On settlement day, your lender and conveyancer coordinate the transfer of funds. The seller receives the balance of the purchase price and the property title is transferred to you. Once the settlement is confirmed, the keys can be released.
5. Finalise post-settlement costs.
After settlement, you may need to finalise costs, such as stamp duty (also known as transfer duty). First-home buyer concessions or exemptions may be available, but eligibility depends on your state or territory, property price and personal circumstances.
Aussie Conveyancing can help with the legal and administrative steps from exchange to settlement, including title searches, lender liaison and settlement coordination.
How Aussie can help: An Aussie Broker can help you manage the finance steps before settlement. Aussie Conveyancing can support the legal and administrative process, while your conveyancer or solicitor can advise on your contract obligations.
What makes contracts of sale at auctions different?
Buying at auction can move quickly. The main difference is that the contract is signed immediately after the successful bid, with the deposit due on the day, and there is no cooling-off period.
There is no cooling-off period.
Auction contracts are generally unconditional, meaning buyers do not have the same cooling-off rights as those that may apply to private treaty sales. Once the hammer falls, the successful bidder may be legally bound to complete the purchase. This makes pre-auction preparation essential.
Finance should be checked before auction day.
Speak with your lender or broker before bidding so you understand your borrowing position and likely limit. Pre-approval can help you estimate your budget, but it does not guarantee final loan approval. If finance falls through after you win at auction, you may still need to settle. You could also risk losing your deposit or facing further legal action.
Inspections should happen before you bid.
Arrange building and pest inspections before auction day. Unlike some private treaty sales, auction contracts do not give buyers time to add a subject to building and pest conditions after the bid is accepted. So, you should complete your due diligence before you raise your hand.
The vendor sets the contract terms.
The contract is available before auction day. The vendor sets the terms, and once the auction ends, there may be little or no room to renegotiate. In some cases, registered bidders may be able to negotiate terms before the auction, such as settlement timing or deposit arrangements. Any agreed changes should be confirmed in writing before you bid.
The deposit is due immediately.
If you are the successful bidder, you will need to pay the deposit on auction day. This is often 10% of the purchase price, unless a different amount has been agreed in the contract.
Remember, buying at auction means you are committed from the moment your bid is accepted. Before auction day, check your financial position, review the contract with a conveyancer or solicitor, and complete property inspections.
You might also be interested in: Auction bidding tips: How to win your next home in Australia
State-by-state contract of sale differences to know
Property contract rules vary across Australia. Cooling-off periods, disclosure documents, settlement practices and contract forms can differ by state or territory, so buyers should get local conveyancing advice before signing.
State | Key contract difference buyers should know |
|---|---|
NSW | A residential property generally cannot be marketed until a contract of sale has been prepared and made available. Private treaty buyers usually have a 5-business-day cooling-off period, unless it is waived or an exception applies. |
VIC | The seller must provide key disclosure information through the Section 32 Vendor’s Statement before the buyer signs. Private residential sales generally include a 3-clear-business-day cooling-off period. |
QLD | Queensland uses standard industry contracts. A mandatory seller disclosure scheme started on 1 August 2025 under the Property Law Act 2023, so buyers should review disclosure documents before signing. |
SA | Buyers receive disclosure through the Form 1 Vendor’s Statement. The cooling-off period generally ends at the end of the second clear business day after Form 1 is served. Settlement is commonly around 30 days, but the contract may set a different timeframe. |
WA | Western Australia does not have the same mandatory seller disclosure statement approach as some other states. Buyers should ask direct questions, complete searches and check the contract carefully before making an offer. |
ACT | The Civil Law (Sale of Residential Property) Act 2003 sets out required documents and buyer protections. The cooling-off period is generally 5 business days, with a 0.25% fee if the buyer rescinds. |
TAS | Tasmania does not have an automatic statutory cooling-off period. The standard contract can include optional cooling-off provisions, but buyers generally need to choose them for them to apply. |
NT | Non-auction contracts may include a 4-business-day cooling-off period, but this can depend on how contracts are exchanged. If conveyancers exchange signed contracts, cooling-off rights may not apply. Get local legal advice before relying on this right. |
The key point: Do not rely on contract rules from another state. A term or process that is standard in NSW may work differently in Queensland, South Australia or Tasmania.
Before signing, ask a licensed conveyancer or solicitor in your state to check the contract, explain your cooling-off position and confirm the disclosure requirements that apply.
Get contract-ready before you sign
A contract of sale is one of the most important documents in a property purchase. It sets the terms, deadlines and obligations that can shape everything from finance approval to settlement.
Before signing, check the contract carefully, understand your cooling-off position and get legal advice from a licensed conveyancer or solicitor in your state. This is especially important at auction, where the contract is usually unconditional and cooling-off rights do not apply.
If you are reviewing a contract for the first time, Aussie Contract Analyser can help you identify key terms, special conditions and possible flags before you speak with your conveyancer.
Once the contract is signed, Aussie Conveyancing can assist with the legal and administrative steps through to settlement.
An Aussie Broker can also help you understand your financial position before you make an offer or bid at auction, so you can move forward with a clearer view of your borrowing options.