Top 10 Things to Look for in a Property Contract Before You Sign (Australia)

Buying property is exciting, but signing a contract without understanding it can be one of the biggest financial risks you’ll ever take.

A conveyancing contract contains far more than the purchase price. It sets out your legal rights, obligations, important deadlines, and the conditions that determine whether the sale proceeds. Missing an unusual clause or misunderstanding a key term can lead to unexpected costs, settlement delays, or legal disputes.

A BuySecure AI contract review can help identify potential issues before you sign by highlighting important clauses, explaining legal terms in plain English, and drawing attention to contract risks. While it doesn’t replace legal advice, it provides Australian home buyers with a brilliant first step review in their conveyancing journey so they can make more informed decisions.

In short

Before signing any Contract of Sale, check:

• The buyer and property details are correct

• The purchase price and deposit terms

• Whether a cooling-off period applies

• Seller disclosure documents

• Finance and building inspection conditions

• Settlement dates and adjustments

• Special conditions

• GST provisions (where applicable)

• Vacant possession or existing tenancy arrangements

1. Are the buyer, seller and property details correct?

One of the simplest mistakes can also become one of the most expensive.

Your contract should accurately identify:

• Every buyer and seller by their legal name

• The property’s title reference (including lot and plan details)

• Any registered easements, covenants, or restrictions affecting the land

Errors may delay settlement, complicate finance approval, or create legal issues - particularly where trusts, companies, or self-managed super funds are purchasing the property.

Risk level: Medium

What to do: Verify all names and title details before signing.

2. Does the contract clearly explain the purchase price and deposit?

The contract should clearly state:

• The agreed purchase price

• The deposit amount

• When the deposit must be paid

• Who holds the deposit

• Whether the seller can access the deposit before settlement

Deposit arrangements vary between Australian states and territories, so it’s important to understand exactly what happens to your money if the contract doesn’t proceed.

Risk level: Medium

What to do: Confirm the payment schedule and when your deposit may become non-refundable.

3. Does a cooling-off period apply?

Many Australian residential property purchases include a statutory cooling-off period, but the rules vary significantly between jurisdictions.

Cooling-off rights may:

• Last for different periods depending on the state or territory

• Be shortened or waived

• Not apply to auction purchases

• Be excluded in certain transactions

Never assume you can simply change your mind after signing.

Risk level: High

Cooling-off periods differ across Australia

Each state and territory has its own legislation governing cooling-off rights. Whether a cooling-off period applies - and how long it lasts - depends on where the property is located and how it was purchased.

What to do: Understand your cooling-off rights before signing the contract.

4. Has the seller provided all required disclosure documents?

Seller disclosure obligations differ across Australia.

Some jurisdictions require extensive disclosure before a property is sold, while others place greater responsibility on buyers to investigate the property themselves.

Disclosure documents may include information about:

• Planning restrictions

• Easements

• Council notices

• Title searches

• Building approvals

• Other matters affecting the property

Failure to provide required disclosure may allow buyers to terminate the contract or seek compensation in some circumstances.

Risk level: High

What to do: Carefully review all disclosure documents before signing.

5. Is the contract conditional on finance or building inspections?

Some property contracts include conditions that allow buyers to withdraw if:

• Finance isn’t approved

• Building inspections reveal significant issues

• Pest inspections identify major defects

These conditions are common in some Australian jurisdictions but far less common in others, particularly in competitive markets or auction sales.

If your contract is unconditional, you may remain legally bound even if finance is declined or serious defects are later discovered.

Risk level: High

What to do: Understand exactly which conditions apply before committing.

6. When is settlement and what adjustments will be made?

Settlement is the legal completion of the property transaction.

The contract should clearly specify:

• The settlement date

• Whether settlement depends on another event

• How council rates, water charges and strata levies will be adjusted

• Whether land tax adjustments apply

Settlement periods commonly range from 30 to 60 days, although they can be negotiated.

Risk level: Medium

What to do: Ensure you understand your financial obligations on settlement day.

7. Title, Easements, Covenants, and Restrictions

Not all property rights are obvious during an inspection. A property's title may include easements, covenants, or other restrictions that affect how you can use the land.

These may include:

• Shared driveways or access rights

• Drainage or sewer easements

• Restrictions on building or renovations

• Covenants protecting neighbouring land

• Rights granted to utility providers

While these don't necessarily make a property undesirable, they can affect future plans, property value, or development potential.

Risk level: High

What to do: Review the title documents carefully and understand any registered easements, covenants, or restrictions before signing the Contract of Sale.

8. Are there any special conditions?

Special conditions override the standard terms of the Contract of Sale.

They may:

• Remove seller warranties

• Limit buyer rights

• Change settlement obligations

• Require additional due diligence

• Permit early access to the property

Because they significantly alter the balance of risk between buyer and seller, special conditions deserve careful attention.

Risk level: High

What to do: Never assume special conditions are standard.

9. Does GST apply to the sale?

GST doesn’t apply to every property transaction.

While existing residential properties are generally GST-free, GST may apply to:

• New residential property

• Commercial property

• Development sites

• Certain investment transactions

Contracts should clearly state:

• Whether GST is included in the purchase price

• Whether the margin scheme applies

• Whether GST withholding obligations exist

Incorrect GST treatment can create significant financial consequences.

Risk level: Medium

What to do: Seek legal or tax advice if GST may apply.

10. Is the property being sold with vacant possession?

The contract should clearly state whether the property will be:

• Vacant at settlement

• Sold subject to an existing lease

If tenants remain in the property, buyers should review:

• Lease expiry dates

• Rental payments

• Bond arrangements

• Tenant obligations

This is particularly important for buyers intending to move into the property immediately after settlement.

Risk level: Medium

What to do: Confirm exactly what possession you’ll receive on settlement.

Contract requirements differ across Australia

Property law is governed by each Australian state and territory.

This means that:

• Standard contracts differ

• Cooling-off periods vary

• Disclosure obligations change

• Settlement practices are different

• Buyer protections are not identical across jurisdictions

Understanding these differences is an important part of managing home buyer contract risk.

How BuySecure helps

Before signing a contract, many buyers simply want to understand what they’re agreeing to.

BuySecure provides an AI property contract review that analyses your contract, highlights important clauses, identifies potential risks, and explains legal terms in plain English - all in around 10 minutes.

A BuySecure AI contract review gives Australian property buyers a faster, more affordable way to understand their contract before making one of life's biggest financial decisions.

Reviews are completed in around 10 minutes, cost significantly less than a traditional lawyer review, and if you later engage Lawlab for eligible legal services, the cost of your review is credited towards those services. Importantly, every BuySecure AI contract review is fully backed by an Australian law firm, giving you the same legal protections and insurance as a contract review completed by a human lawyer.

Unlike traditional business hours, BuySecure is available 24 hours a day, seven days a week, making it ideal when time is critical, including just before an auction. After receiving your review, you can continue asking questions through Bella, BuySecure's AI legal assistant. Bella helps explain your contract, answers follow-up questions in plain English, and gives you the confidence to better understand the property before making an offer or deciding your next conveyancing step.