A Checklist Before Signing a Contract of Sale

A contract of sale is a legally binding document the moment it is signed and exchanged, and in most states there is either no cooling-off period or only a short one with penalties attached. That makes the period before you sign the most important part of the whole transaction to get right. This checklist covers what to check, and who should check it, before you put your signature on a contract.

Have a Conveyancer Review the Contract First

Never sign a contract of sale before a conveyancer or solicitor has reviewed it, even if the agent is pushing for a quick signature. A proper review covers the parties named on the contract, the settlement period, any special conditions, and whether the contract matches what was actually verbally agreed with the vendor or agent. If something in the contract does not match your understanding of the deal, this is the point to raise it, not after you have already signed.

• Have your conveyancer review the full contract before you sign, not just skim it yourself.
• Confirm the settlement date and any finance or inspection clauses match your needs.
• Check special conditions carefully, including any added by the vendor's agent.
• Confirm the deposit amount and how and when it needs to be paid.

Check the Special Conditions Closely

Special conditions are the clauses added on top of the standard contract terms, and they can significantly change your rights and obligations. Common examples include finance clauses, building and pest inspection clauses, and conditions related to the sale of your existing property. Read each special condition for its exact wording rather than its general intent, since the difference between "subject to finance approval" and "subject to finance being arranged" can materially affect your ability to exit the contract if something goes wrong. If you are buying in Queensland, our guide to standard REIQ contract special conditions covers this in more state-specific detail.

Confirm the Finance Clause Protects You

If your purchase depends on finance, the finance clause should specify a realistic date by which approval must be obtained and set out what happens if it is not, ideally allowing you to withdraw and recover your deposit. Confirm this date lines up with a realistic timeline from your lender, factoring in valuation and any additional documentation they might request, rather than an optimistic best-case scenario. Buyers who skip this step and rely on an unconditional cooling-off period alone can find themselves without protection if their state's cooling-off rules do not extend to their situation.

Review Title, Zoning and Encumbrances

Before signing, your conveyancer should check the title for easements, covenants, caveats or other encumbrances that could affect how you use the property, along with confirming zoning matches your intended use if that matters to your plans. This is particularly important if you are buying with a view to renovating, subdividing, or running a business from the premises, since council planning restrictions are not always obvious from a standard title search alone.

Arrange Inspections Within the Right Timeframe

If the contract includes a building and pest inspection clause, confirm the deadline for completing it and raising any issues, and book the inspection promptly rather than leaving it until the deadline approaches. If no inspection clause exists and you are not buying at auction, discuss with your conveyancer whether to negotiate one into the contract, or complete inspections before you sign at all, so you are not locked into a purchase before knowing the property's condition.

Confirm Who Is Named on the Contract

Check that the buyer's name, or names if purchasing jointly, are recorded correctly and match how you intend to hold title, since amending this after signing can be more complicated than getting it right from the outset. If you are buying through a company, trust or self-managed super fund, confirm the contract names the correct legal entity, and check with your accountant beforehand whether that structure will actually work for your intended use of the property.

Understand Your State's Cooling-Off Rules

Cooling-off periods, where they exist, vary significantly between states in length, the penalty for withdrawing, and whether they apply at all to a particular type of sale such as an auction purchase. Confirm with your conveyancer exactly what cooling-off protection, if any, applies to your specific contract before you sign, rather than assuming a general right to change your mind exists everywhere in Australia. In states or situations where no cooling-off period applies, all of the checks in this list need to happen before signing rather than being left for the days immediately after.

If a vendor's agent pressures you to sign quickly, treat that as a reason to slow down rather than speed up, and remember that a genuine offer will generally still be available the following day once your conveyancer has had a chance to review the paperwork properly.

Get the Contract Checked Before You Commit

Whether you are buying your first home or your fifth investment property, the principle is the same: a signed contract is binding, so the review needs to happen beforehand. Checking a conveyancer's credentials matters here too, since you want someone properly licensed reviewing a document with this much weight; our guide on checking a conveyancer's licence in NSW explains how to verify this, and buyers in New South Wales can also confirm a licence directly through NSW Fair Trading's conveyancer licence register. Getting a fixed-fee quote and having your contract reviewed before you sign gives you a clear picture of the transaction and time to raise any concerns while you still can.