What to Look for in a Contract of Sale Before Buying Property

Buying a property is one of the biggest decisions you’ll make, and before you sign on the dotted line, it’s crucial to understand what you’re agreeing to. The Contract of Sale is the legal document that outlines the terms of the sale and once it’s signed, you’re legally bound. So let’s break down what you need to look out for before signing.

The Parties Involved

Check that your full legal name is correctly listed, along with the seller’s details. It sounds simple, but mistakes here can cause big delays or legal issues.

The Property Details

Make sure the address, title reference, and property description (including any inclusions like appliances, blinds, or fixtures) match what you’re expecting to buy. If something was promised during the inspection, make sure it's in writing.

Purchase Price and Deposit

• Purchase Price: Confirm the final agreed price is listed correctly.

• Deposit: Know how much you need to pay upfront (usually 5–10%) and when it's due. Also, check who’s holding the deposit it’s usually a real estate agent or solicitor in a trust account.

Settlement Date

This is the date the property officially becomes yours. Most contracts allow for 30, 60, or 90 days. Make sure it suits your plans and any financial arrangements.

Cooling-Off Period

Depending on where you’re buying, there may be a cooling-off period a short timeframe (like 3-5 business days) where you can change your mind after signing. Know your rights here it can vary by state or territory.

Special Conditions

This section can include extra clauses, like:

• Subject to finance approval

• Subject to a satisfactory building and pest inspection

• Early access for measuring or quotes If anything important to you isn’t in the contract ask for it to be added.

Zoning and Restrictions

Make sure there are no restrictions on how you can use the property. Some properties have zoning rules, easements, or heritage overlays that may impact future renovations or usage.

Disclosures and Warnings

The seller is required to disclose certain issues, like:

• Past flooding or bushfire risk

• Asbestos

• Unapproved structures Look closely at these disclosures so you’re not caught off guard after settlement.

Who Prepares the Contract?

In most cases, the seller’s conveyancer or solicitor prepares the Contract of Sale. But you should always have your own legal representative or conveyancer review it before you sign. They’ll make sure your interests are protected and help you understand any legal jargon.

Ask Questions—No Question is Too Small

This isn’t the time to be shy! If anything in the contract seems unclear, ask your conveyancer to explain it. It’s their job to help you feel confident and protected in your purchase.

Final Thoughts

A Contract of Sale is a legally binding agreement so don’t feel rushed. Take your time, read every section carefully, and get professional advice. When in doubt, reach out to your conveyancer for peace of mind before making one of the biggest commitments of your life. Need help reviewing your contract? At SL Conveyancing, we’re here to guide you every step of the way. Reach out before you sign, and let us make sure everything’s in your best interest.